The Minister for Agriculture was confident last night, following talks with his Egyptian counterpart, that Ireland's £200 million beef trade with Egypt would be restored.
Mr Walsh said his meeting with Dr Wali, Egypt's Deputy Prime Minister and Minister for Agriculture, had been very positive. Once the Egyptian veterinary authorities had completed their assessment of recent developments, Mr Walsh said, he was confident there would be an early resumption of the issuing of import licences.
The Minister flew to Cairo following an EU farm ministers' meeting which agreed a package of controls to deal with the BSE crisis on the Continent. Egypt announced last week it was suspending the issue of new trading licences in beef with the EU.
Meanwhile the Taoiseach, Mr Ahern, has told the Irish Farmers' Association president, Mr Tom Parlon, that the BSE crisis has been placed on the agenda of the EU summit in Nice for discussion this week.
Mr Parlon said that while farmers supported the beef safety and consumer assurance measures agreed in Europe, he was critical of the failure to take into account the plight of farmers with no outlets for their cattle.
Mr John Smith, chief executive of the Irish Meat Association, which represents Irish meat plants, said his members had a serious volume of beef in stock for which they had already paid farmers.
"We will be seeking compensation for any losses that may arise from this because we did not cause the BSE crisis. It was triggered by the inaction of a number of countries which did not deal with their own BSE problems," he said.
Until the level of damage caused to the sector could be evaluated, he could not specify from whom they would be seeking compensation for losses. The reopening of markets, especially the Egyptian, would have an impact on the level of exposure the plants would face as a result of the crisis.
In addition to the six-month ban on the use of meat-and-bonemeal, the EU farm ministers also agreed that all animals over 30 months could not enter the food chain unless they were tested for BSE and given the all-clear.
The council noted the proposal to carry out the "purchase for destruction" of livestock aged over 30 months in order to provide an alternative outlet for such animals.
According to a statement from Mr Walsh, compensation payment to producers for such animals would take into account the types of animals and markets, and would attract 70 per cent financing from the EU.
The agriculture council also agreed it was essential to introduce an intervention scheme for beef, the details of which will be decided by the Beef Management Committee on December 12th.
The council took the view that beef-producers were likely to be adversely affected by the market situation and called on the Commission to make proposals to the council.