The Irish Creamery Milk Suppliers' Association (ICMSA) has described as a "bribe" a reported plan for a compensation fund for farmers that will be impacted by the EU-Mercosur Trade Agreement.
International media reports suggest that the European Commission is planning to put in place a compensation fund for impacted farmers in a bid to make the trade deal more palatable to member states showing resistance to it, particularly France.
These reports also indicate that the French government is aware of the proposed compensation deal and that France would consider engaging with it.
The ICMSA has said that this development is "profoundly worrying".
According to Denis Drennan, the ICMSA president, such a move would amount to an "admission" by the commission that the agreement would undermine the EU farming sector.
Drennan said: "It's beyond disappointing that we have commission officials actually dressing up what is plainly a bribe to the farmers of a certain member state as a so-called compensation package.
"It's nothing of the sort and everyone has to remember that long after the 'sugar rush' of this compensation package has been spent, what's left of the EU's indigenous farming community will be buried under cheap and environmentally destructive imports coming from these Mercosur states," he added.
The ICMSA president claimed this was a "tactical ruse" by the commission to offer already under pressure farmers a "temporary fill-up".
"The commission is then able to hand access to the Mercosur markets to the EU tech, pharma and financial sectors and get cheap food produced to lower standards for its consumers."
"It's a win-win for them and a lose-lose for the EU farmers and anyone who wants to see the rainforests protected from the kind of insane clearances that South American farming is predicated on," he added.
Drennan went on to criticise what he claimed was a "deafening silence" from the environmental lobby on the issue.
"Where are all the media commentators and activists who are never off our airwaves objecting to a new slurry tank at the other end of the country? If [the Mercosur deal] goes through...then South American beef production will rise to meet that the EU demand and that production will be at the expense of their forests and global climate stability," he said.
Drennan called on the Irish government to indicate that it will not withdraw its objections to the agreement, even if France withdraws its opposition.