Four of the largest retailers in Ireland have announced price cuts this weekend.

Lidl, Tesco, Aldi and Supervalu have all announced that the price of 2 litres of milk in-store will drop by 10 cent, according to reports this morning.

While it will as come as welcome news for shoppers, the Irish Farmers’ Association has been warning against such a move.

It says cuts to the price of milk so far this year have already amounted to an average loss for dairy farmers of €50,000.

Recent figures from Kantar suggest grocery price inflation is at a record high, rising over 16 per cent in the last year, while CSO data says that the price of milk is up 24 per cent since the beginning of the war in Ukraine last year.

Speaking to Newstalk, the chair of the IFA’s Liquid Milk Committee, Keith O’Boyle said it will have drastic consequences for farmers: “When we see retailers cutting milk price like this, the only thing that happens is a price war, They use our milk as a loss-leader.

“What happens is we lose as farmers and the money they cut will dwindle down, and we will feel the brunt of it.”

Mr O’Boyle said this comes as they are on the highest cost of production ever in the history of farming, and they have already endured cuts earlier this year.

Meanwhile, as the Irish Examiner reports Labour finance spokesperson Ged Nash said supermarkets have been partaking in price gouging and prices need to decrease.

“[The milk price cut] is good news for shoppers, and it essentially confirms what I’ve been saying for weeks – price gouging is endemic throughout the grocery sector in Ireland.

“Government must now commit to working with the CCPC to stamp out this ‘greedflation’ once and for all.

“These big and brave supermarkets must also commit to meaningful price reductions across the range of other products that they are using to cream it in.”

Mr Nash said the situation requires action and acknowledgement from the Government that “something has to give”.