Dec. 8 (Bloomberg) -- Irish pork producers are facing a 100 million-euro ($128 million) bill to recall all pork products made from pigs slaughtered in the country after tests confirmed some meat contained dioxins.

“This decision has huge financial implications for the processing companies that are involved,” Cormac Healy, director of the Irish Association of Pigmeat Processors, told state broadcaster RTE today. “We need immediate assistance from government.”

Irish pork products were recalled after tests confirmed that around 10 percent of Ireland’s estimated 1.47 million pigs may have been exposed to feed containing dioxins, associated with cancer. Ireland exports about 1 million euros of pig meat a day and authorities in the U.K. are advising consumers not to eat any pork from Ireland.

Rosderra Meats, which produces about 50 percent of Ireland’s pig meat according to its Web site, laid off 850 workers today. The company said it had “no alternative” due to the “uncertainty within the industry,” while labor union SIPTU said as many as 6,000 jobs may be at risk.

The pig processors association said the slaughter of pigs won’t resume until the government pledges aid.

Contamination Uncovered

The Food Safety Authority of Ireland is investigating the contamination, which originated with an Irish feed producer, and expects to have pork products back on the market within a week, Chief Executive Officer Alan Reilly said yesterday. The contamination was uncovered early last week as part of a routine check, Reilly said. Nine farms in Northern Ireland also used the feed.

The oil used by the feed producer to dry out food “was not appropriate” and requires a license from the Environmental Protection Agency, which the operator didn’t have, Dermot Ryan, senior inspector at the Department of Agriculture, said at a press conference in Dublin today.

Singapore and South Korea today suspended the import and sale of all Irish pork and pork products with immediate effect. In all, 25 countries import Irish pork products, RTE reported.

The impact on Kerry Group Plc, Ireland’s largest food company, will be limited, according to spokesman Frank Hayes. Glanbia Plc said it’s “not adversely affected” by the recall. Neither company is directly involved in pig processing.

“In line with the withdrawal of products in the Irish market, our product was withdrawn,” Kerry’s Hayes said by phone. The company is working to get products back into stores as quickly as possible, he said.

To contact the reporter on this story: Colm Heatley in Belfast at cheatley@bloomberg.net

Last Updated: December 8, 2008 11:47 EST