The Irish Farmers' Association yesterday cancelled a protest which could have stopped the distribution of vegetables from Tesco's national distribution centre in north Co Dublin.
The decision followed an agreement between the two sides on the marketing of top grade potatoes at Tesco outlets.
The supermarket chain had introduced a 7.5 kg pack retailing at £1.99 early in September, but following IFA protests, the price was increased to £2.49. The resultant discussions revolved around the classification of Irish potatoes.
It is understood that Tesco has agreed not to classify Grade 1 Irish potatoes, which it says do not meet its standards, as Value Pack potatoes which are sold at a lower price.
Discussions on potato prices and on the importation of tomato and turnip from abroad are understood to be continuing.