The Department of Agriculture last night reversed its decision not to continue subsidising the rendering industry and announced a €7 million continuation of the subsidy, which should avert a shutdown of beef processing from Monday.
Late last night the Department said it would continue paying renderers - who turn offal from meat plants into meat and bonemeal - a subsidy of €250 per tonne until May.
A statement from the Minister made it clear that the subsidy could not continue after the three months, and this would allow the industry time to make alternative arrangements.
The removal of this subsidy from March 1st as part of general Government cutbacks had created a standoff between the renderers, the meat plants and the farmers, who threatened to withhold cattle supplies from Monday if they were forced to pay the new charges.
However, as the Irish Farmers' Association's Livestock Committee met to consider the new offer, which is exactly half of the previous subsidy to the renderers, it was expected that the move would avert Monday's closure of the industry.
The renderers had said they could not continue to operate without the subsidy, which until March 1st was worth €410 per tonne to assist renderers transport, manufacture, store and export the meat and bonemeal to Germany for destruction.
The renderers had asked the factories to pay the new charges, but they refused and said the cost would have to be met by the farmers.
The farmers responded by saying they would withhold their cattle rather than pay the new charge, which is worth €13-€15 per beast and €2 on each sheep.
Earlier, at a press conference organised by the Irish Farmers' Association, its president, Mr John Dillon, had said: "We are not paying one cent of this cost. We are on our knees as it is and cannot bear any more costs."
Mr Pat Brady of the Associated Craft Butchers of Ireland, said he wanted to know exactly how much it cost to render offal.
His members were unhappy with the charges which the butchers, abattoirs and small food producers his organisation represented had been presented with by renderers.
He said the rendering sector was very highly regulated and asked if it was necessary to bring meat and bonemeal to near-food-quality level by sterilisation, since it was all incinerated.