Another attempt to reform the Common Agricultural Policy will be made on Wednesday next as the three-day session was adjourned without agreement last night in Luxembourg.
The Minister for Agriculture and Food, Mr Walsh, had been the only optimistic Irish voice being heard there last night before the talks resumed at 7 p.m.
Within minutes of the resumption, the adjournment was announced.
Mr Walsh had said he was confident he "could get a good deal for Ireland coming from a weak base."
Dr Franz Fischler's new proposals on partial decoupling of direct payments from livestock production left Ireland with a certain amount of flexibility, which could be discussed with the social partners, Mr Walsh said.
However, he expressed reservations about the cuts in direct payments on milk supports, which were still on the table, and said he needed more substance to be put on these.
Fine Gael's Agriculture spokesman, Mr Billy Timmins, urged Mr Walsh not to accept the new document as it only had minor changes. He said the matter should be left to the heads of state.
IFA president Mr John Dillon said the latest proposals were only a minor improvement and Mr Walsh must hold out against milk price cuts.
While lower cuts have been proposed in milk supports, the Commission also reduced the level of compensation offered, he said.
The Irish Creamery Milk Suppliers Association president, Mr Pat O'Rourke, proposed rejection of the deal.
Macra na Feirme president, Mr Thomas Honner, said the latest offer would not move the CAP reform talks forward. The compromise paper had added insult to injury.
Mr John Tyrell, director general of the Irish Co-operative Organisation Society, said Mr Walsh's mandate had been to defend the Agenda 2000 agreement.
The third compromise paper went beyond that and was therefore unacceptable.
He said that at the council nine states had expressed their opposition and therefore there should be no agreement on these terms.
The Ministers spent most of the evening in bilateral sessions with Dr Fischler and later with their farm organisations.