THE BSE crisis could cost the Irish beef industry £500 million over the next 21\2 years, according to the Minister for Agriculture.
Speaking after a meeting with French Agriculture Minister, Mr Philippe Vasseur, Mr Yates said meat prices, already down by 7 to 8 per cent, would probably drop further.
Mr Yates described his French counterpart as "one of the most powerful and influential voices in the [EU] Farm Council".
Yesterday was the first of two days' discussion formulating a policy to deal with what both ministers agree will he a bleak autumn market. Mr Yates said they agreed that a price package, the set aside scheme and reform of the fruit and vegetable sector should be the priorities of the Irish EU Presidency.
But these are overshadowed by the serious situation of the BSE crisis", Mr Yates said, describing BSE as the biggest single crisis to hit the Common Agricultural Policy in more than 30 years".
Mr Vasseur said a slaughter policy for dairy as well as beef calves would have to he introduced to lower production rates. This plan was at the initial discussion stage. He also indicated that the EU should consider shifting payments from the parable section to beef producers.
A beef promotion campaign across Europe was vital to increase consumption rates, which were predicted to fall by 20 per cent. Consumers should have full information on meat and the management of the autumn market, when more animals came on stream, would have to he carefully controlled.
Mr Vasseur said the French would be pushing for a vigorous policy of intervention" by the Community and all categories of animals should he taken into account.
Answering a question about a British newspaper report that a BSE infected French cow had been exported to Britain in 1991, Mr Vasseur said France had an extremely rigorous surveillance system" and to date 21 case had been detected.
