Talks between farmers and the Government on a social partnership pay deal have been suspended at the request of the Irish Creamery Milk Suppliers' Association (ICMSA).
A spokeswoman for the group said they requested the bilateral talks with the Department of Agriculture be suspended because of the "complete failure by the Government to deal with or take action on the core issue of falling farm incomes".
She said talks would not resume until a "meaningful proposal" was put on the table, adding that the other farming groups - the Irish Farmers' Association (IFA), Macra na Feirme and ICOS - had supported the move.
Farmers and other social partners are talking with the Government about a partnership pay deal to succeed the Programme for Prosperity and Fairness.
Earlier, the ICMSA said its members may not ratify a deal unless "serious action" was taken by the Government against planned reforms of the EU Common Agriculture Policy.
It said the plans announced by EU Commissioner Franz Fischler yesterday would have disastrous consequences for Ireland as a whole and not just the farming community.
Speaking after a meeting with the Minister for Agriculture Mr Walsh this morning ICMSA President Mr Pat O'Rourke said he had "strongly impressed upon the Minister the need to completely reject the proposals".
The president of IFA, Mr John Dillon, said Mr Walsh had "recognised the gravity of the situation and had given his commitment to face down the greatest challenge to Irish agriculture since we joined the EU over 30 years ago".
Many in the agriculture industry believe the EU reforms announced yesterday could make farming unprofitable for thousands of Irish farmers.
