Beef processing plants are working at a fraction of capacity following the latest BSE scares. Plants are working at as little as 25 per cent of capacity, and between one and three days a week.

Demand from European markets for beef has fallen dramatically and the State's most important export market, Egypt, has closed its doors. Factories have been left with stocks, already paid for, in storage and have no idea when the meat can be sold.

Slaughtering was running at 40,000 head a week one month ago. Two weeks ago, this had fallen to 32,000 and last week to 26,000. The figure is expected to be lower this week.

Cattle prices have dropped from about 95p (€1.20) a pound to about 82p and cows are "unsaleable", according to farmers.

The chairman of the Irish Farmers' Association beef committee, Mr Derek Deane, has accused the European Commission of "a major cover-up and a huge scandal" in relation to the level of BSE in other European countries.

"We have had the best regulations in place in this country. We're very aware of the importance of consumer confidence because we export 90 per cent of production. The door to Europe closed in 24 hours. Some people haven't realised how bad it is yet."

Mr John Smith, chief executive of the Irish Meat Association, said most workers in the industry continued to be employed but arrangements could vary between factories.

"The industry capacity would be 45,000 cattle a week. I would imagine they are killing between 25 and 40 per cent, depending on the plant. They would be busy up to mid-December normally.

"People have stocks they are trying to find a home for. It's a big issue. Cattle were bought back in November and farmers were paid. But the meat is still in store. Where is it going to be sold and how much will be paid for it?" he asked.

The European Commission's beef management committee is due to meet in Brussels on Tuesday to decide on measures to deal with the crisis.