The German-owned Aldi chain of supermarkets, which began trading earlier this week in Dublin and Cork, is in negotiation with the IFA over the price at which it is selling milk.
The chain has been offering milk from Northern Ireland at 89p for two litres. The retail price of milk in Irish supermarkets is 66p per litre. Milk suppliers, who have their own organisation within the IFA, are angry at what they see as below-cost selling by Aldi.
Some years ago, when Dunnes Stores attempted to sell low-cost Northern Irish milk in the Republic, farmers blockaded distribution stores.
A leading producer said yesterday that they were disturbed at the latest development.