The beef sector hit a major crisis in early autumn when the Russian economy more or less collapsed making it impossible to continue exporting 70,000 tonnes of beef, worth £100 million.
The industry had already taken a severe hit following the BSE crisis of March 1996 when it was announced in the British parliament that there might be a link between BSE and nvCJD, the human equivalent of the disease.
There was severe disruption both to the EU and non-EU markets, as consumers turned away from beef eating because of the scare.
Despite that, Ireland managed to export £963 million of beef that year and £974 million worth the following year. Egypt and Russia were our main external markets and they performed well until the middle of 1998.
But just as the main crop of animals were ready in September, the Russian market closed down and Egypt, sensing our difficulties, demanded beef at rock-bottom prices.
As a result the price per lb fell from just over 90p for quality beef to a low of 76p, which for most farmers is below production costs.
The recent introduction of special EU intervention for Ireland, for which Irish factories have tendered for 4,000 tonnes of beef over the next fortnight at an average of 80.6p per lb, should ease some of the difficulties.