An offer of 90p per lb for ordinary-grade cattle over 320 kg has been made to farmers blockading the Galtee meat plant in Charleville, Co Cork, operated by the Dairygold Co-operative.
Mr John Cunningham, general manager of the meats division of the farmer-owned co-operative, said the offer had been made to the farmers by Mr Denis Lucey, chief executive of the co-op, yesterday morning.
"The offer was made to break the log-jam in the dispute and to give leadership in finding a resolution to the dispute," Mr Cunningham said yesterday.
He said the co-operative had passed on the controversial veterinary inspection fee to farmers last Monday week, but claimed this was an increase of £1.80 to the farmers, which did not nearly cover the total fee.
"When other members of the Irish Meat Association sought court injunctions against the farmers we would not do so. We advised the meat association that such action was not appropriate and we did not take part," he said.
As a result, the farmers blockading the company's plants were not acting illegally, as no injunction had been sought to prevent them.
Mr Cunningham denied there was a cartel operating between factories and said that the market set the price. The meat business was a difficult one, with profits running at about 1.5 per cent of turnover.
He said his company, which kills 75,000 cattle per year and operates boning halls for other companies, controlled about 10 per cent of the meat business in the Republic and had most of its markets in continental Europe.
The farmer-suppliers picketing the plant were last night considering the offer. Mr Cunningham said that if it was accepted, the plant could reopen within 24 hours.