Ireland will have no choice but to import milk if supermarkets descend into a price-war.

That's the warning from the Irish Farmers' Association, after four leading retailers dropped the price of milk by 10 cent overnight.

The IFA says dairy farmers are currently facing record production costs, and cannot cope with any more losses.

Chair of its Liquid Milk Committee, Keith O'Boyle fears more and more dairy farmers will leave the business if this continues: