The Taoiseach, Mr Berie Ahern, today warned farmers they needed to prepare for a more competitive environment.
Speaking at the opening of the Agricultural Consultants Association, Mr Ahern said the EU's proposals for the Mid Term Review of Agenda 2000 constituted a fundamental reform of the Common Agricultural Policy (CAP).
In addition, he said: "We can be certain that the next World Trade Organisation agreement will involve a reduction in the levels of tariff protection and increased imports into the EU."
"The Irish agriculture and food sectors need to prepare for a more competitive environment - an environment that will be challenging but also one of greater opportunities," he said.
The Taoiseach said he was mindful that these are not the easiest of times for farmers and that 2002 had been a difficult year with "miserable weather, lower output, and relatively poor prices".
Mr Ahern praised the participation of farmers in the social partnership process, saying the current talks took place in a much "altered financial atmosphere".