Farming groups have criticised price cuts on milk and butter by supermarkets, saying the move will damage the dairy sector.
Yesterday, most of the major grocery retailers lowered the prices of their own-brands, with 2 litres of milk down 10 cent and 454g of butter down 40 cent.
The moves follows a fall in milk prices in recent months due to an oversupply, with estimates suggesting global milk supplies rose by around 2% in 2025, compared to a small drop in 2024.
Dairy prices had risen by around 11% on an annual basis towards the end of last year, but those rises have since eased somewhat.
This is the second time in recent months that supermarkets have lowered their milk and butter prices.
While the latest price cuts will be welcome by consumers amid sustained higher food prices, the group representing dairy farmers, the ICMSA, described them as "questionable and cynical".
ICMSA President Denis Drennan said: "Right now the farmers producing the milk on which all these products are based are receiving a price that's less than the costs of production.
"We don't know what the retailers' margins are; we don't know what they are taking by way of margin for accepting delivery of a pallet and putting them in a fridge for a few hours," he added.
Meanwhile, the Irish Farmers' Association (IFA) said the reductions come at a time when "we have huge spikes in fertiliser and energy costs and yet the supermarkets have made these cuts this morning".
IFA Liquid Milk Chair Henry Dunne said the milk-price cuts are "tone deaf and a kick in the teeth for farmers ... and will damage the sector".
The IFA is warning of farmers exiting milk production "in significant numbers" due to price volatility in the sector and said the latest price cuts "will speed up the exodus".
However, in announcing the price cuts supermarkets said they will continue to support farmers.
Lidl said it remains a "dedicated partner to the Irish agricultural community, ensuring that as we deliver value to shoppers, we continue to support the long-term viability of the local producers who supply our 100% Irish milk and butter".
While Tesco said it continues "to work closely with Irish farmers and suppliers to champion Irish product and support sustainable agriculture across Ireland".
