It now appears an outbreak of foot-and-mouth disease has been detected in Northern Ireland. Meanwhile, 1,300 sheep were slaughtered in the Republic after confirmation that animals from the Armagh farm under suspicion crossed the border.
The Northern Ireland Minister for Agriculture Mrs Bríd Rodgers said tonight: "It is now our belief we are looking at an outbreak of this disease in Northern Ireland."
She said that while testing on the animals was not complete, some of the salughtered sheep "displayed symptoms consistent with foot-and-mouth disease".
She also revealed that another sheep from a farm in Castlederg has also shown symptoms.
Mrs Rodgers announced a series of measures including a ban on the movement of farm animals other than for slaughter, a ban on the holding of livestock auctions and on the movement of horses.
She confirmed that the RUC has been brought in to investigate suspicions of smuggling.
A senior official said he would not go as far as saying this was a major smuggling operation "at this stage".
A Co Down importer and a South Armagh farmer have been interviewed by department officials. As blood samples were sent to England for analysis, an 8km exclusion zone was set up around the farm at Meigh. It will take up to four days until the final results are known.
Some of the livestock suspected of having the disease in Northern Ireland is understood to have been moved into the Republic, according to the British Ministry of Agriculture.
The Department of Agriculture here has confirmed two farms in North Wexford and the Kepak plant in Athleague, Co Roscommon have been declared a restricted holding and that sheep at the three locations were slaughtered.
The Department also confirmed samples had been taken from the sheep for testing.
Over 200 sheep that passed throught the farm under suspicion in Co Armagh and brought to the Kepak meat plant in Athleague Co Roscommon were slaughtered.
The 1,300 sheep destroyed in Co Wexford were slaughtered as a precaution because they had been imported from Devon.
A Department spokesman said the slaughter took place to comply with EU regulations making the slaughter of imported animals after February 1st mandatory.
Officials are trying to trace the movements of more than 200 sheep bought at a market in Carlisle - before the disease in Britain was confirmed - and transferred to Northern Ireland certified for slaughter.
They believe the animals were kept in south Armagh but a majority were later moved across the border into the Republic.
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A livestock importer and a dealer were being questioned today as sheep were destroyed amid heightening fears that foot-and-mouth disease could have spread to Northern Ireland.
The flock was incinerated on a farm at Meigh, South Armagh, which has now been sealed off.
The alarm was raised after Department of Agriculture officials questioned the two men. Officials are now investigating if they were in breach of animal movement regulations.
Northern Ireland Agriculture Minister Mrs Bríd Rodgers confirmed her officials were trying to identify the ultimate destination of the sheep and in the meantime had placed a restriction zone around the farm.
Tests are being carried out to establish if the sheep had foot-and-mouth - which would be the first case in Northern Ireland.
Mrs Rodgers said that since the zone around the farm straddles the border, authorities in the Republic had been advised and were taken appropriate action.
The minister, who met senior officials and representatives of the agriculture industry in Belfast, said: "This vividly illustrates the consequences of people ignoring the rules which are in place to protect the livelihoods of farmers and the well-being of our agri-food industry."
Mr Tom Parlon, President of the Irish Farmers' Association, said this latest development "heightened" the challenge faced by farmers in the Republic.
"It is a body blow to the north of Ireland and to the whole island of Ireland, because we did put on a lot of our defences on the fact that we had our island status."
In addition, Mr Parlon called for a complete ban on all movement of livestock within the state, except for animals going directly from farm to slaughter, on top of an existing ban on livestock markets.
Additional reporting: PA