By Andras Gergely
DUBLIN, Dec 8 (Reuters) - Ireland worked on Monday to restart the supply of pork products after dioxin contamination caused the meat to be pulled from shelves in up to 25 countries, leaving producers facing a bill of at least 100 million euros ($128.2 million).
"There are indications from my members already that between debtors list and stock that they believe is in the system, we're looking at a bill in the region of 100 million (euros)," said Cormac Healy, director of The Irish Association of Pigmeat Processors (IAPP). "And we're just starting there."
Veterinary authorities said they think only 10 of Ireland's 500 pig farms have been contaminated by dioxin-tainted feed, but they will not allow processing to restart anywhere until every producer can prove they are using clean feed.
The Irish government on Saturday ordered the food industry to recall all domestically produced pork products from shops, restaurants and plants because of contamination with dioxin, which in some forms and concentrations, and with long exposure, can cause cancer.
Authories said 10 farms in Ireland and nine in the British province of Northern Ireland had used contaminated pig feed. Both Britain and Ireland have told consumers not to eat any Irish pork products, though the risk to public health is considered extremely low.
A total 20-25 countries may have received contaminated shipments, including France, the Netherlands and Belgium, according to Irish officials.
The IAPP said pig slaughtering would not restart in Ireland for a number of days while logistical and financial problems were addressed.
"We're facing a major financial crisis, a major liquidity problem," IAPP director Healy said, adding that the industry has appealed for emergency financial help from the government.
Ireland exports pig meat and related products, such as pizzas, pies and sandwiches containing pork, worth 750 million euros ($950 million) a year, 63 percent of it to the United Kingdom, according to the Irish Exporters Association.
Irish producers normally slaughter an average 10,000 pigs per day, Healy said.
Irish authorities are working on a labelling system to identify new products when pork goes back on the shelves.
"Certainly we'd be hoping that there will be product back on the shelves sometime later this week," Aidan Cotter, chief executive of the Irish Food Board, told public broadcaster RTE.
Analysts said logistical issues could be resolved quickly and products could be back on the market by mid-week, but demand would be hit.
One Dublin-based trader said market leader Kerry Group, which sells the popular Denny bacon rashers and Wall's sausages, was the only major listed Irish company affected by the recall and market reaction was very muted.
"People are clearly not that concerned about it," the trader said. "Certainly people are not reacting to it in the market at all."
Kerry could be faced with losses of 4 million to 5 million euros per week in the approach to Christmas, said Liam Igoe, an analyst at Goodbody Stockbrokers.
"We expect the initial logistical issues to be sorted quickly and product supply is expected to be resumed as early as tomorrow," Igoe said in a research note.
A spokesman for Kerry Group spokesman said its products had been pulled from shelves but would not give a monetary value of the company's potential losses.
"We're not directly involved in the incident, we're not involved in primary pork production," the spokesman said.
"We're hopeful that we can secure new supplies of raw materials and we'll have products back on the shelves tomorrow or Wednesday."
Shares in Kerry was trading 0.9 percent lower at 16.55 euros by 1032 GMT, underperforming a 4.5 percent higher wider Irish market. (Editing by Karen Foster)