Cattle prices went into free-fall yesterday as the trade reacted to the delay in the resumption of live trade export to Libya. The industry had been depending on the trade after the closure of the Russian beef market caused by the monetary difficulties there.
Russia was Ireland's largest customer outside the EU until the market closed about 10 weeks ago, ending a trade worth £100 million a year.
Falling beef consumption in the EU and a slowing of the UK market, the Republic's largest customer in the Union, meant there was already a surplus of beef as the peak killing season approached.
On Monday it was learned that the live trade with Libya would not be resuming on October 10th as announced by the Waterford exporter, Mr Seamus Purcell.
A company spokeswoman said that, while there would be no cattle leaving Ireland on Saturday, she did not rule out the possibility of a ship leaving for Libya the following week.
A Department of Agriculture spokesman confirmed that the expected sailing would not take place on Saturday but expressed confidence that Libya would buy Irish cattle this autumn under the terms of an agreement.
But trade sources said yesterday that the trade to Libya, which would have provided an outlet for plainer-type cattle and put a floor on cattle prices this harvest, was unlikely to resume before December.
A December resumption of the trade would come too late for many of the 100,000 beef producers who have their animals ready now for sale and cannot afford to feed them until then.
Prices being offered for top-grade animals at the few factories accepting cattle yesterday ranged from 70-78 pence, and many factories, already killing only two days a week, were refusing to accept cattle.
Farm organisations are demanding that the EU introduce emergency beef intervention. The Drystock Farmers' Association sought emergency meetings with the Taoiseach, Mr Ahern, and the Minister for Agriculture, Mr Walsh.
Mr Frank Allen, the Irish Creamery Milk Suppliers' president, called on Mr Walsh to explain why the Libyan market had not reopened as had been promised and demanded immediate action.
Today the Irish Farmers' Association president, Mr Tom Parlon, who has been visiting Iran where Mr Walsh is attempting to reopen the beef trade there, is to lobby TDs and senators on the beef issue and on the income and fodder crises.