Malcolm Walker, chief executive of Iceland, said retailers are not to blame for the horsemeat scandal, as food prices are being driven down by local authorities who operate an "invisible market" catering to schools, care homes and hospitals.
He said the horsemeat scandal has been "hyped out of all proportion."
"Cheap food doesn't come from supermarkets it is driven by local authorities trying to get their prices down. "
Wholesaler Castell Howell have contacted customers after a 'possible contamination' of cottage pies.
The Food Standards Agency (FSA) has just announced it will extend its UK-wide survey of burgers and similar beef products.
The horsemeat scandal continues to diminish public confidence in the food industry, an ITV News Index poll finds.