The Irish Farmers' Association is calling for a food regulator to be set up as a matter of urgency.
It says more and more farmers will go out of business, if supermarkets continue dropping the price of food.
From this morning, the price of own-brand butter is being lowered in Lidl, Tesco, Aldi and Supervalu stores.
It's just five days since the supermarket chains slashed the price of milk.
The IFA's Liquid Milk Chair, Keith O'Boyle says, with the price of production at historic highs, dairy farmers simply cannot afford any more losses.
"Ultimately what that needs to be doing is putting transparency into the market.
"In real terms, what it means is that we would have a food regulator, a food ombudsperson, whatever you want to call it, and that food regulator will egulate where the market will turn the margins.
"In other words, if we can make a margin for each person in the supply chain, then we will know there isn't any price gouging in any sector of that chain."
