A beef-processing plant in Co Leitrim has closed as a direct result of the BSE crisis, with the loss of 45 jobs.
Local people said the closure of Vanstar Irl Ltd in Jamestown would have a major impact on the small community.
Mr James Murray, a director of Vanstar, said the BSE destruction scheme had pushed the price of beef up to a level that was not commercially viable.
The company exports 95 per cent of its produce and has been in operation in Jamestown for six months.
Mr Murray said problems started in November with the collapse of European markets because of the BSE controversy. The closure of the Egyptian market had added to them.
He said Vanstar managed to survive in December only because the price of beef was low. With the start of the destruction scheme the raw material was not available and the price of beef was too high.
"Farmers will not sell unless they get a price of over 90p a pound, which is uncompetitive for commercial markets," Mr Murray said.
A skeleton staff is remaining at the factory, and workers were told that efforts would be made to try to reopen it. "We certainly hope to reopen, but it depends on what happens with the destruction scheme," Mr Murray said.
The price of beef in the destruction scheme has been set until June 30th.
"This is a very sad situation, and we are not the only company in the country that is going to be affected," Mr Murray said.
Ms Sinead Guckian, a county councillor who lives close to the factory, commented: "Jamestown is a very small village, and this is the only factory it it. There are a few other companies in Leitrim, but this is a lot of jobs to lose in a small area.
"We are just hoping that the closure will be temporary."