The Competition Authority's director of enforcement, Mr Pat Massey, has said the law on competition would have been brought into disrepute if he made no comment on the sale of low-price milk by the German supermarket chain Aldi.

The IFA objecting that Aldi is charging 79p for two-litre cartons of milk normally priced at £1.14. It also objects that local suppliers in Co Cork are not being used.

However, Mr Massey said in a statement this week that Aldi was free to sell milk at whatever price it likes, once it adhered to the Groceries Order which prohibits below-cost selling.

The Tanaiste, Ms Harney, said yesterday that she supports the Competition Authority's position on Aldi's pricing strategy. "This is a situation which once again clearly signals the benefits to the consumer of having increased competition in the market place," she said at a UCD conference on the development of competition.

Mr Massey said yesterday that he had offered to meet the IFA, but the organisation had yet to respond. Last night an IFA spokeswoman said the association's president, Mr Tom Parlon, was prepared to meet Mr Massey "as soon as possible".

Aldi opened two low-cost outlets in Dublin and Co Cork last week. The firm plans to open up to ten further outlets throughout the State in the next year and a half.

It is understood that Aldi's regional manager, Mr Patrick Boyle, and its buying director, Mr Tony Baines, met senior IFA figures, including the chairman of its liquid milk division, Mr Henry Corbally, on November 4th, the day its stores started trading. Aldi agreed to the meeting on the basis that the IFA would conduct no protest outside its stores on that day.

Aldi told the IFA last Monday that it was not prepared to lower its prices. The firm is also understood to have received complaints from local bread and egg suppliers prior to opening.

On Thursday, the IFA conducted what it described as an "information campaign" outside Aldi's store in Ballincollig, Co Cork, outlining objections to its pricing strategy.