UK: Big Supermarkets To Slash Prices

This isn't likely to be good news for British agriculture, as they won't be looking for the costs to come out of their own pockets will they?

Tesco announced a new low-cost range of products and price cuts on Wednesday, as it fights back against budget supermarket rivals that have eaten into its market share.

Tesco said the new range of 350 goods, called Discount Brands at Tesco, would span tea bags, biscuits, shampoos and washing up liquid, and was its biggest package of money-saving measures since the launch of its Value range 15 years ago.

It also pledged to invest more than 100 million pounds in cutting prices of "hundreds" of existing Tesco and branded products.

The move comes hours after arch-rival Asda, which is owned by U.S. group Wal-Mart Stores, announced plans to cut prices on more than 5,000 goods this autumn and escalates the battle between Britain's top grocers as they seek to gain a greater share of cash-strapped shoppers' purses.

Britons are curbing spending amid rising food and fuel costs, sliding house prices and mounting economic gloom, and growing numbers have been switching to shop at cheaper outlets.