A shipment of grain from the US, intended for use as an ingredient in cattle feed in Ireland, has been found to contain traces of bone meal which can carry a risk of BSE.
The Department of Agriculture said the contamination was uncovered during a routine check of grain which was being stored at a manufacturers facility in Drogheda, Co Louth.
The grain was imported from the US between October 9th and 15th.
Traces of fish bone and mammalian bone, which are banned in Ireland, were found in the shipment.
A spokesman for the department last night said it was not yet clear to what extent the contaminated batch had been distributed within the State.
"That's what we now have to assess," he said.
Comprehensive records of all shipments are retained making it relatively easy to quickly track the batch, he added.
The fact that the shipment came from the US, where BSE is not widespread, means the risks posed are not significant, the spokesman said. The contaminated shipment comprised 2,681 tonnes of distillers dried grains of which 1,951 tonnes were still being stored in the manufacturers facility in Drogheda when the contamination came to light.
The balance of the contaminated ingredient and all of the compound feed containing the ingredient at the Drogheda premises has been impounded.
All six compound feed manufacturers who have already received delivery of the product have been notified to return the balance of the contaminated grain to the importers.
They have also been told to recall any of the contaminated compound already sold to farmers and retailers.
The department is also investigating where and how the grain became contaminated and is seeking details of the manufacture, transport and storage of the batch before it arrived in Ireland. All recent imports of distillers dried grains are also being investigated for contamination. As part of international efforts to eradicate BSE, the Irish authorities have also notified the European Commission.