The Minister for Agriculture and Food, Mary Coughlan , said the WTO package agreed in Hong Kong represented the best possible outcome for Ireland, a view disputed by the farm organisations.

She said agreement between the 148 members of the World Trade Organisation (WTO) on liberalising trade across a broad spectrum of activities, including agriculture, would promote growth in developing countries while protecting the model of agriculture practised in the European Union and the livelihood of farmers within the union.

"I have taken a strong line during the week both bilaterally and in the numerous Council of Ministers meetings held here in Hong Kong in urging the Commission to resist the pressure for concessions," she said.

The Minister added that as a result of the tough stance taken by the EU, which she had encouraged and supported, a much improved outcome had been secured.

"The date of end-2013 for the elimination of all forms of export subsidies will only be confirmed when there is agreement on parallel elimination of other forms of export support operated by countries outside the EU," she said.

Ms Coughlan said that this gave the industry in Ireland eight years to adjust to the withdrawal of export refunds and it also ensured that there would be a level playing field with all of our competitors on world markets.

The flexibility on how to phase out export subsidies has been retained by the EU, a point which was very important for Ireland.

But the Irish Creamery Milk Suppliers Association president, Pat O'Rourke described the phasing out of subsidies as "disastrous for Irish farming, particularly the dairy and beef sectors" and this view was also put forward by the president of the Irish Farmers Association, John Dillon.

Irish agriculture faces huge challenges in the coming years following agreement at the WTO and the EU budget 2007 to 2013, according to Fine Gael MEP Maireád McGuinness.

The MEP, Ireland's representative on the European Parliament's agricultural committee, said the elimination of export refunds by 2013 would pose serious problems for farming and the agri-food industry.

"While a commitment had been made to eliminate export refunds, to do so in eight years will present huge challenges," she said.

"If new markets are not found, the EU will face cuts in farm production, a loss of jobs in the food processing sector and a drop in farm incomes."