The Department of Agriculture today described the Purchase for Destruction (PFD) scheme, expected to come into effect next week, as a "temporary arrangement".
The plan which has been formulated in the wake of EU-wide response measures to recent outbreaks of BSE in Germany and France, will ensure that all Irish cattle over the age of 30 months and destined for human consumption be tested for BSE.
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Animals over 30 months which have not undergone a test may be offered to the Department for purchase, slaughter and destruction by beef producers under the PDF scheme at a price of 87p/lb for grade R3 and 60p/lb for grade O4 cattle, according to Mr Paul Savage, spokesman for the Department.
Mr Savage said the plan was a two-pronged effort to restore consumer confidence in beef consumption, which has been adversely affected by recent BSE scares in Europe and to support a market which has an "excess of product".
The mandatory BSE testing is expected to reassure consumers of the quality of beef entering the food chain he said.
However, the Irish Farmers Association (IFA) had called on the Minister for Agriculture Mr Joe Walsh last month, during the EU beef management negotiations, to secure a minimum base-line intervention price of 90p/lb for O-grade cattle.
IFA president Mr Tom Parlon warned "anything less than 90p/lb for O-grade cattle will be viewed as failure by farmers".
Nonetheless Mr Savage said that he predicts a "significant take-up" of the scheme by Irish farmers.
Application forms for the PFD scheme will be available in local Departmental offices from Friday January 5th and must be presented along with Cattle Identity Cards to avail of the plan.
Participating processing plants are expected to be announced during the week.