Ireland imports over one million tons of soya meal and 160,000 tons of corn which is used as the raw material in the production of animal feed here in Ireland.

The move towards biofuel in the US has meant that there is less maize available for export, causing a shortage of supply and doubling the price of corn in the last year.

This has combined with rising energy costs and weather affecting the harvest and has brought about a growth of between 15% and 20% in the price of Irish animal feed.

"There is no doubt it is having a major effect and is one of the factors driving up feed prices.

We are very dependent on the US, " said Deirdre Webb director of the Irish Grain and Feed Association.

"Without saying anything against biofuels, if we are going to use our food crops for energy production we should be thinking about the impact this will have on our food market. I don't think we have done that yet, " she said.

The US government wants 20% of its fuel requirements to come from biofuel by 2015 and are giving out over $1bn a year in subsidies towards the industry.

This will require a 46% rise in maize production in the US, leaving even less for their export market.

However, as well as the move towards biofuels, market speculation among American fund managers that commodity prices will go up has created more investment demand for foods and cereals.

"The price of commodities has been so low historically that the feeling among the fund managers is that crop prices can only go one way . . . up, " according to Fintan Conway, general secretary of the Irish Farmer's Association grain committee.

"All of these factors are driving up costs across the board and the move towards biofuels in America is definitely part of it. It's probably pig and poultry farmers that will suffer the most, " he said.