Fine Gael agriculture spokesman Mr Billy Timmins said the Minister for Agriculture had accepted "a bad deal" on CAP reform and that he must now account for his decision.
He said the reforms agreed by European farm ministers this morning could be the first step in dismantling the Common Agricultural Policy (CAP).
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"The new CAP reforms will see a loss of €130 million to the Irish dairy sector alone, and will have a serious impact on the rest of the agricultural industry in this country," he said.
"This could be the first step in the final dismantling of the CAP, at a time when the sector is going through very difficult times.
"Agricultural output fell by 8 per cent last year and farmers face a very uncertain future. The Government must now re-examine the level of funding it has allocated to agriculture from its own budget, in an effort to keep the industry on its feet," Mr Timmons said.
But the Labour Party spokeswoman on agriculture, Dr Mary Upton, welcomed the fact that agreement had been reached ahead of the World Trade Organization talks in September.
She said although the fine print of the deal had yet to be examined, it appeared there were a number of options on decoupling in the various sectors, which should allow each farming sector to make the most of what was agreed.
"The cuts in the dairy sector are very worrying but the 81 per cent level of compensation in this area will lessen the blow".
"Commissioner Fischler has also made significant concessions on butter intervention, which will allow time for the dairy sector to adjust to the demands of the marketplace in the future and to look at other product options for milk," Dr Upton said.
"Thankfully, cereal cuts were totally removed from the deal," Dr Upton said.