The Oireachtas Committee on Agriculture, Food and the Marine has heard calls for an export credit insurance scheme following the appointment of a receiver to livestock exporter TLT International.
Representatives of farming organisations appeared before the committee after one of Ireland's largest exporters went into receivership earlier this month.
Up to 30 marts are still owed money from TLT International, with some owed between €300,000 and €400,000.
The Irish Farmers' Association said an unknown number of farmers are also owed money.
Paul Smith of the Irish Creamery Milk Suppliers Association said his organisation has received numerous complaints from farmers in the last week and said those who are owed money from TLT should be preferential creditors.
He said payments in the sector should always be up front, but this is not always the case, and called on the Government to introduce some form of export credit insurance scheme.
Irish Co-operative Organisation Society Chief Executive Seamus O'Donoghue told the committee that marts will feel the strain of the TLT receivership, but he hopes most have the capacity to absorb the losses.
IFA President John Bryan said the organisation will be prioritising the need for farmers and marts to get the money they are owed in any meetings with receiver Grant Thornton.
Mr Bryan said the goodwill in the sector depends on people getting what they are owed.
Irish Cattle and Sheep Farmers' Association Chairman Gabriel Gilmartin said confidence in the mart system is vital for the live export sector and he added that examinership would have been a better option than receivership.
In his statement to committee members, Mr Gilmartin said the situation was a "real wake-up call" for the industry.
He said the sector needs to examine if a different model can now be developed for live exports.
Fianna Fáil's Éamon Ó Cuív welcomed the assurance from Mr O'Donoghue that marts can take the financial hit and he said he hoped the situation we would not stop farmers bringing livestock to marts.
Mr Ó Cuív said a live export trade is vital for farmers so they can get the maximum price for their livestock and he called for a coherent structure on the trade.
Independent TD Luke 'Ming' Flanagan said the situation is going to cause big problems for farmers and will affect the price they get for their livestock.
He questioned what companies would be in a position "take up the slack" to fill the "big hole" in the market after the closure of TLT International.
Fine Gael's Martin Heydon said any loss of competition in the live export sector would be a long-term concern. He said there needs to be some analysis of what happened at TLT and how it was run.
