THE Government should be able to ride out the current controversy in the beef industry, a leading commentator on agriculture said last Seamus Sheehy, of UCD, said allowing the Russians to veto beef from three Irish counties need not be a serious issue for the agriculture sector.

Speaking to The Irish Times at the Economic Policy Conference in Kenmare, he said the damage done to Irish agriculture should be minimal. He added that although the Minister for Agriculture Mr Yates "conceded something" in dropping three counties from the Russian menu, he had at least kept 23 counties.

"Our processors are well capable of redirecting beef so that the Russian beef comes from the 23 eligible counties and the beef from the discriminated counties will go to all other eligible markets," he said. "That way there will be little or no damage done."

Earlier yesterday, Prof Sheehy told the conference the EU will most likely abolish milk quotas around the year 2000. The next trade agreement to follow the Uruguay Round will cause farm gate prices to fall, he predicted, and this will undermine the quota system.

Prof Sheehy also pointed out that the CAP could be undermined by enlargement of the EU. The former eastern bloc countries due to enter the EU are currently operating at around world prices, he said.

In addition, 40 per cent of their income comes from agriculture compared to 15 per cent in the EU.

"If we insist on them holding on to quotas we will force their prices up," he said. "At the same time the liberalisation process will be continuing and so tariffs will keep falling.

At the end of the day this means these countries will be able to seek compensation to the EU and Ireland's detriment, he warned.