ASDA to slash home grown meat prices
By FWi staff
SUPERMARKET chain ASDA has announced that it is to cut the prices of some of its traditional cuts of British meat by up to 27%.
But the store insists farmers will not see farmgate prices slashed to meet cuts in the price of British beef, poultry, pork and lamb under its Rollback scheme.
The National Farmers Union welcomed the move, but said it would keep close tabs to ensure ASDA delivered on its pledge not to pass on costs.
From Monday (13 March) all 233 ASDA stores will drop prices of cuts,— sales of which have recently fallen into decline — in a £14m scheme.
The price of lean topside of beef will fall from £6.49 per kilo to £5.49, while a boneless pork leg now costs £2.59 per kilo instead of £3.28,
The price of lamb breast falls from £1.99 a kilogram to £1.44 today, and a 2.2kg roaster chicken now sells for £3.99 instead of £5.49.
ASDA meat and produce director Angela Spindler said: “The last year of Rollback has proven that where you sell for less you sell more.
“Through Rollback we have created a virtuous circle of great value driving volume sales — this benefits suppliers, retailers, and customers alike.”
“The huge increase of Rollback has helped draw almost a million extra customers into our stores.
“It is this increased business that has enabled ASDA to invest £14m worth of margin into lowering the price of meat — the only change the farmer will see is increased customer demand.”
An NFU spokeswoman said: “The NFU welcomes any promotional initiative which provides British consumers with the opportunity to buy home-reared meat.
“We welcome the assurance that the cost of the promotion will not be passed on to the farmer, and expect ASDA to deliver on this.
“British farmers need more general assurance like this to ensure the livestock sector can continue to deliver to retailers and consumers.”
Figures released by the ministry of agriculture last week showed that pork purchases fell 9% in 1999, lamb and mutton purchases dropped 3% and poultry consumption fell by 6%. Beef purchases remained static.
A Competition Commission inquiry into supermarket grocery prices is due to talk to supermarkets this month about pricing and their relationship with suppliers.
It will reach it its final conclusions later in the year.
Last year ASDA denied a £68m round of price cuts was a smokescreen to divert attention from the then imminent inquiry.
In November the NFU threatened to take Safeway to the Competition Commission after the chain sent a letter to its suppliers asking for £20,000 per product line to be used to support sales promotion.
The NFU has since secured assurances that producers who choose not to participate will not be penalised, but has retained its threat to take the case to the commission.