The £70 million live cattle export trade with Libya, once the Republic's most valuable export market, is expected to resume in the coming months, following the signing in Tripoli yesterday of a joint communique between the Minister for Foreign Affairs, Mr Cowen, and his Libyan counterpart.
It is understood that the Republic is now the only EU country officially listed as a source country for the supply of live cattle and beef to the North African state.
And at a news conference in Cork last night on his return from Libya, Mr Cowen said the Libyan Foreign Minister, Mr Abdul Shalgam, had accepted an invitation to make an official visit to Ireland, but no date for the visit had been set. A visit by the Libyan head of state, Colonel Gadaffi, had not been discussed, but through his representatives, Colonel Gadaffi had made known his support for the resumption of the cattle trade and for the Irish peace process.
The Minister for Agriculture and Food, Mr Walsh, said that the highest international standards would apply to Irish exports and he said he would welcome spot checks by Libyan officials at any point in the process.
The announcement of the resumption of live exports was welcomed last night by the Irish Farmers' Association president, Mr Tom Parlon, who described it as "a major boost to the livestock sector". Apart from its intrinsic value, the live trade is regarded by farmers as one certain method of maintaining high cattle prices in the meat factories.
Libya was once the State's single biggest market for live cattle. At its peak in the early 1990s, the Republic was exporting some 100,000 head of cattle, worth around £70 million and roughly 10,000 tonnes of beef. But exports from the Republic and other EU countries were banned in 1996 following the BSE scare. This ban hit the Republic harder than most countries.
Contacts with Libya continued after the ban was imposed and in 1998, and agreement was reached for the resumption of the trade. A Libyan delegation came to the Republic and the market was due to reopen in July of that year. This agreement was dependent on certain veterinary health conditions. However, the trade did not restart because of what one Department of Agriculture official described as "a blockage in the Libyan system".
The Minister, Mr Walsh, spent several days in Libya after that, conferring with Government and veterinary officials there and the Taoiseach, Mr Ahern, discussed the problem when he met the Libyan leader, Colonel Gadaffi, at the Afro-European Summit in Cairo last April.
It is understood that no specific numbers of cattle or tonnage of beef are mentioned in the agreement. Libya sources its live animals and meat by tender from supplying countries. While exports will resume shortly, the biggest volume will be required for the Libyan trade in the mid-to-late-autumn.
Purcell Brothers and Horgans of Cork were the main exporting firms.
During the years when EU countries were banned from supplying cattle, Australia and Romania became the major suppliers to Libya - at very competitive prices.
Live cattle exports from the Republic reached record levels last year, with 415,000 head being exported. The main markets were other EU member countries and Lebanon, which accounted for between 70,000 and 80,000 head. Live cattle exports so far this year are running 34 per cent up on the same period last year.
Egypt, which once was an important market for live cattle has now changed and is importing large quantities of beef - last year, exports amounted to over 140,000 tonnes.