A COW thought to have BSE on a Co Cork farm did not have the disease, the Department of Agriculture confirmed yesterday.
Scientific tests on the animal had shown it had not suffered from the disease of the central nervous system.
Meanwhile, amid continuing concern about the cattle industry it was learned yesterday that Irish factories which had tendered for 500 tonnes of EU intervention contracts over the next fortnight had been unsuccessful because their price was too high.
Because of its concern that the crisis in the industry will lead to an increase in export of live animals, Compassion In World Farming, the animal welfare organisation, mounted a protest outside the Dail calling for an end to the export of live cattle.
Ms Mary Ann Bartlett, of CIWF, said "We believe that the trade in live cattle from Ireland to non EU countries may grow to greater proportions than ever before and Irish cattle may be forced to make increasingly longer journeys."
She said the BSE crisis could increase live shipping numbers from last year's figure of 260,646 from Ireland to North Africa and the Middle East.
"We know that many animals have died on these journeys to North Africa and we know that 246 animals on one boat died in the Suez Canal en route to the Middle East and many more animals have died in the Bay of Biscay.
"The Department admit that they have no control of animals after they leave the country, so we are saying they must not be exported. The Irish authorities also have no control over slaughter houses there.
"Our great fear is that Irish standards will be lowered to meet world trading conditions because of the BSE scandal which was caused by unnatural and unwise farming practices when herbivores were fed feed stuff containing products from dead animals in an effort to boost productivity."
She said that Irish live cattle exports are subsidised by the EU and currently exporters are receiving around £300 per live animal.
The live exporters are seeking an increase in this grant which would make them more competitive with Australian cattle exports.
"We fear that as demand for cattle falls because of BSE, the export refunds will be raised and this will give a major boost to live shipping. We say live shipping must be stopped", said Ms Bartlett.
The protest, which was supported by TDs Mr Tony Gregory, Mr Sean Haughey, Mr Joe Costello and Ms Roisin Shortall and MEP Ms Mary Banotti, would continue until live exports ceased, she added.
"If shippers fill a ship with animals for North Africa, we will be there to protest," she warned.
In a speech to the conference of the European Association for Trade in Meat and Livestock, the Minister for Agriculture, Mr Yates, said the Irish beef industry had responded to a 12 per cent increase in export refunds on May 9th by taking out export licences for 26,000 tonnes of and 5,000 live cattle.
The volume of licences out suggests a substantial of confidence on the part Irish beef trade and its ability find outlets for the expected supplies of cattle over the months, he said.
The Minister praised the help given by the EU Commission, especially the introduction of intervention.
But, he said, intervention could not supply a complete solution to the problem because intervention stores will be limited by the GATT agreement.
The Swedish Prime Minister, Mr Goran Persson, has accused Britain of damaging the entire EU by disrupting its business over the ban on British beef exports.
Mr Persson told reporters he was concerned the controversy would affect the EU summit in Florence from June 21st.
"It looks grim. Britain is hurting the whole union. They're playing with high stakes," Mr Persson said after a meeting of the Swedish parliament's European affairs committee.
"I object strongly to Britain's obstructive methods in completely unrelated matters", he said.
But he added that there appeared to be signs of a compromise to end the dispute.
. A British power station has been given permission to test if meat from cattle culled because of the mad cow scare can be used safely and efficiently as fuel.