The new EU schemes to help beef farmers through the BSE crisis have run into trouble with the farm organisations over the price to be paid for animals under the slaughter for destruction scheme.
Because this test or destroy scheme will deliver more money to producers than intervention, it has emerged as the preferred option for beef farmers, who have already seen the price of their animals drop by between £80 and £150 in the last four weeks because of the BSE scare.
As talks got under way between the Department of Agriculture and the meat processors on the huge logistical problem of how to slaughter up to one million animals, Mr Walsh said farmers could expect to receive 86.8p a lb for higher grade bullocks, 87.2p a lb for heifers and 60p a lb for cows.
But the Irish Farmers Association, which will hold an emergency meeting of cattle farmers in Goff's arena, Kill, next Sunday, demanded that the Minister secure a minimum base price of 90p a lb for ordinary grade steers.
Mr Derek Deane, chairman of the IFA's livestock committee, said the price being offered under the sale for destruction scheme was £45 a head below the 90p a lb base price set by the IFA during its protests in January last year.
Mr Pat O'Rourke, president of the Irish Creamery Milk Suppliers Association, said that in the purchase for destruction scheme Irish farmers would have to receive the same level of compensation as their European partners, who would get nearly £200 more per animal.
Mr Charlie Reilly, chairman of the Irish Cattle Traders and Livestock Owners Association, said farmers would opt for the slaughter for destruction scheme because it would deliver a better price than intervention and would take beef completely out of the system, unlike intervention.
A plan to address the testing regime, the operation of the destruction scheme, the handling and destruction of meat-and-bone meal and a strategy on reopening markets is being drawn up.