Meat Industry Ireland (MII) has claimed 3,000 employees have been temporarily laid off at meat processing plants due to ongoing blockades.
Independent farmers have been protesting outside meat plants amid the continuing dispute over beef prices.
MII, which represents processors here, now suggests 80% of processing capacity has closed - with further closures and layoffs likely in the coming days.
The group said: "It is not just the direct employees that will be affected by the ongoing crisis, hundreds of indirect jobs will be impacted as ancillary businesses including hauliers will be heavily impacted by these closures.
"The Minister for Agriculture has tried to get all parties around the table to reach a settlement, and beef processors have always been open to engage in that process, but not whilst their plants are being illegally blockaded."
Talks aimed at ending the dispute over the beef prices paid to farmers were cancelled last night due to the pickets.
The protests have been unofficial since the Beef Plan Movement (BPM) came to agreement with the meat processors on a range of issues.
After those talks, independent farmers continued to picket, calling for talks on pricing.
BPM has said they are willing to talk to the picketing farmers, provided MII agrees to completely drop all threats of legal action against them.
The organisation's Spokesperson Dermot O'Brien said the MII decision to walk away from last night’s talks “showed huge disrespect to the farmers of Ireland” and urged the Taoiseach to take control of the situation.
The Irish Farmers' Association has also called on MII to return to talks as soon as possible.
