Lidl Ireland is to cut its retail price for milk immediately, reducing the price of a 2L carton of milk from €2.45 down to €2.35.

The price cut will apply across all of its milk products, and the supermarket says the move will return €2.9m to shoppers.

However, farmers will fear the price cuts may signal a price war among retailers, for which farmers will ultimately pay the price.

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Robert Ryan, CEO of Lidl Ireland and Northern Ireland said: “We understand that rising inflation and the cost-of-living crisis has posed significant challenges for our shoppers as well as our suppliers in recent years.

"To deliver on this commitment, we are consistently looking for ways to increase efficiencies and reduce costs in our own operations to help absorb external pressures as much as possible.”

Ryan said the price drop “represents a significant investment” and that Lidl takes “great pride in bringing locally sourced, quality milk at the best value on the market to households across Ireland”.

Food inflation

The move comes as the CSO revealed that Consumer Price Index (CPI) rose by 2.7% between September 2024 and September 2025. This was the highest annual rate of inflation observed in the CPI since March 2024, when the rate was +2.9%.

The division with the largest increases in the 12 months to September 2025 was food and non-alcoholic beverages, which rose by 4.7%.

Whole milk rose by 12.1%, while butter rose by 11.7% in the 12-month period.

Meat rose by 11.2% overall, with beef and veal increasing by 23.6%.

Cheap food

The IFA president Francie Gorman said the CSO figures needed to be seen in context.

Consumers in Ireland had little or no food inflation for over 20 years up to 2024, he said.

“In fact, food prices actually were lower in 2021 than they were in 2001, 20 years previously. This was simply unsustainable,” he said, also highlighting supply chain disruption caused by the war in Ukraine.

He said Irish and EU policies pushing more regulation and less production had the “inevitable consequence” of higher prices.

Milk price

On Friday, Lakeland Dairies announced it was cutting its September milk price by 2.85c/l excluding VAT. It will pay a base price of 41.63c/l excluding VAT at 3.3% protein and 3.6% butterfat.

It pointed to a decline in commodity prices for butter and all milk products which was “contributing to a significant downward momentum on farm gate price”.

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