A milk price war has broken out in kosher shops in London and Manchester after the arrival of a new supplier.

Until now, milk for the strictly Orthodox community has been produced by Charedi Dairies and Edgware Dairies under licence from Kedassia, the kashrut division of the Union of Orthodox Hebrew Congregations, and the London Beth Din. It has been typically sold for 94p a litre.

But a fortnight ago, the Milk Company in north-west London launched its product under the licence of the London Beth Din and two independent rabbis.

It is being sold in kosher shops in London and Manchester for 79p, a price now matched by Charedi Dairies. The new company plans to move into door-to-door sales at 84p a litre.

It also says it has received inquiries to extend its operations to the Gateshead community.

Leading strictly Orthodox figure Rabbi Avraham Pinter, principal of the Yesodey Hatorah Schools, said: "Competition has never done anyone any harm. However, we need to be sure there will be a continuous supply."