Supermarkets in the Irish Republic are threatened with a petrol-style blockade by dairy farmers who claim they could be put out of business by the current price war.
All the major chains Tesco, Dunnes, SuperValu, Superquinn, Aldi and Lidl have slashed their milk prices to 86p for two litres, which is putting severe pressure on what producers are paid.
Now the 100,000-strong Irish Farmers' Association whose blockade of beef processing plants earlier this year closed down the industry and won higher prices, has warned it will not allow the supermarket price war to continue indefinitely.
At the IFA's national dairy conference on Wednesday, speakers threatened a similar blockade against the multiples in the fight over cut price milk. Association president Tom Parlon, who led the beef blockade, accused "the multinational chains" of putting jobs and livelihoods in jeopardy, and warned: "If this price war is allowed to continue, farmers will be the ultimate victims of what is a race for profit and market share."
Delegates also warned of action against cheaper milk being brought in from Northern Ireland by some multiples Aldi, Lidl and Superquinn among them which one speaker claimed was being used as "a cynical marketing ploy" to displace local supplies.
But Tesco Ireland's managing director, Maurice Pratt, who spoke at the conference, said his company intended to maintain its price cuts for the long term. He warned that the imminent introduction of the euro would put more pressure on food prices, with farmers being forced to adjust their prices to a level consumers would accept.
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