Farmers have reacted angrily to the European Commission’s proposal that its share of the €100m beef compensation fund be subject to the condition that Ireland should use the money for “production reduction and restructuring of the beef and veal sector”.

The draft regulation would also require Ireland to choose one of three options – to implement quality or added-value schemes in the beef sector, to boost market diversification or protect and improve farmers’ environmental, climate and economic sustainability.

IFA president Joe Healy has called on Minister for Agriculture Michael Creed to “reject all conditionality in the draft regulation that does not relate to the actual income losses experienced by beef and suckler farmers.”

Livestock chair Angus Woods warned that cutting beef production in Ireland would open an avenue for the European Commission to conclude a Mercosur trade agreement.

“There is no way we will cull cattle here to make way for South American beef,” Woods said.

ICMSA president Pat McCormack said it was “absolutely unacceptable that the European Commission would allocate this money in recognition of the losses Irish farmers have been taking since mid-2018 as a direct result of Brexit – but then go on to attach conditions to accessing it that will, in many cases, compound those losses”.

The ICSA will hold a farmer meeting in Athlone on Thursday to get views on how the €100m beef fund should be divided.

Hugh Doyle, co-chair of the Beef Plan Movement, labelled potential conditions on the €100m beef fund as “discriminatory” against suckler farmers.

It is understood Minister Creed will consult with farm organisations on the scheme on his return from Japan. There was no reference to any supply control measures in the Irish Department’s submission to Brussels for Brexit compensation, a Government source told the Irish Farmers Journal.

Ireland has until 31 July 2019 to outline the measures it will take, the criteria it will use to pay the money and how it will avoid distorting competition.