Some 80 per cent of Irish beef is unsuitable for export "to the high grade markets of continental Europe", the Minister for Agriculture and Food, Mr Walsh, said.

The Minister was responding to a question from Ms Cecelia Keavney, who asked what plans, if any, he had "to improve the breed characteristics of beef cattle".

He said that up until recently beef cattle breeding was fragmented between a number of organisations. However, the pooling of resources and expertise in the newly-formed Irish Cattle Breeding Federation gave "an opportunity to improve the genetic merit of the national herd".

He said one of the greatest impediments to raising the quality of Irish beef was the flat-pricing system which paid the same price per kilo whatever the quality of the beef.

"My Department is . . . involved in ongoing discussions with the meat industry and farming organisations with a view to the introduction of a pricing system which adequately rewards quality beef production and encourages producers to improve the beef characteristics of their cattle.

"I understand that the Task Force on the Beef Industry, which I set up last November, is also addressing this issue," he added.

He said the main obstacle to the introduction of such a system was a lack of confidence between farmers and retailers.