Hoping to boost meat exports to Egypt, the Minister for Agriculture secured approval in Brussels for a substantial rise in export subsidies for farmers shipping beef to the potentially lucrative north African market.
The move followed intense lobbying from farmers' representatives, who insisted the Irish beef trade could only re-establish itself in Egypt with the aid of significant Government subsidies.
A 20 per cent rise in advance payments for cattle premiums was also announced by Mr Walsh, after he received the approval of the European Beef Management Commission in Brussels.
The new export refund rate for shipments to Egypt are 22 to 30 per cent above the norm.
The Minister said the rise would strengthen competitiveness in the beef industry and allow producers greater flexibility when sourcing cattle for shipment abroad.
Egypt agreed to accept Irish exports last year, following an 18 month ban imposed at the height of the BSE scare.
The market was once worth €300 million annually. Despite repeated diplomatic missions by senior departmental officers, trade has remained sluggish.
Welcoming yesterday's announcement, the Irish Farmers' Association called on meat factories to respond by raising the price paid for cattle. The president of the IFA, Mr John Dillon, said: "Today's decision to increase beef export funds to Egypt clearly provides an immediate cattle price increase, which could defuse the dispute between livestock farmers and meat factories."
He added: "The substantial increase in funds will effectively kick-start beef exports to Egypt and the factories must reflect this important improvement in market conditions by responding with an immediate increase in cattle prices."
The Minister, Mr Walsh, also revealed he is bringing forward the payment of 50 per cent arable aid to October 15. These grants are worth some €65 million.