As cattle prices plunged yesterday to 68p per lb, a 25-year low, the Minister for Agriculture, Mr Walsh, was warned of an angry reaction from farmers if he failed to secure changes in EU intervention regulations.
Mr Walsh is expected to fly to Brussels tomorrow to secure an amendment to the rules which will allow 40 per cent or more of Irish cattle into the scheme.
A Department spokesman said last night that Mr Walsh had spoken by telephone to the EU Agriculture Commissioner, Mr Franz Fischler, and had secured agreement in principle for the changes necessary to allow 04 grade animals - good quality Irish bullocks - into the scheme. But as prices fell to 68p per lb for the lowest grade of cattle, political pressure was being put on Mr Walsh to deliver the changes necessary to avert a crisis in the beef sector.
The last round of CAP reform imposed a weight limit on what could be taken into intervention and this was tightened further to prevent "angel dust" abuses, especially in Ireland.
The IFA president, Mr Tom Parlon, accused Mr Walsh and the Department of Agriculture of "standing idly by" and allowing meat factories bring down prices over the past six months to a level lower than at the height of the BSE crisis.
The Drystock Farmers' Association appealed to the meat factories to submit a sizeable tender for EU intervention for decision this Friday and said slaughtering was 40 per cent lower last week than in the corresponding period last year.