THE UK farming industry has been plunged back into crisis with the confirmation of another outbreak of foot-and-mouth disease.

A nationwide movement ban on cattle, sheep, pigs and other susceptible animals was imposed after the Department for Environment, Food and Rural Affairs (Defra) announced that initial tests on animals on farmland near Egham, Surrey, showed they had the virus.

Protection and surveillance zones were set up around the outbreak and cattle were culled as a precaution after displaying symptoms of the highly-infectious disease.

Prime Minister Gordon Brown pledged that the authorities would do "everything in our power" to eradicate the disease and track down the source of the latest outbreak.

Farming leaders in the region last night described the latest case of foot-and-mouth as a "hammer blow" to the industry.

Hundreds of animals were understood to be in danger of being stranded at auction marts in the region, after Defra was unable to issue licences for their movement in time.

Livestock markets throughout the region have been forced to cancel big sales today and until further notice.

Stephen Aitken, managing director of Darlington Farmers' Auction Mart, said it had been forced to cancel a big prime stock sale due to take place today.

He said the consequences of movement restrictions could be devastating, and added: "If they are unable to be moved, you're looking at serious welfare issues and serious financial issues for farmers."

He said it was crucial that Defra acted quickly to contain the outbreak and trace any other livestock that could have been affected.

He said the mart had made 24 casual workers redundant after the outbreak last month.

"It will have a devastating impact on our business," he said.

"It will cause unemployment."

Stephen Walker, of Leyburn Livestock Auction Mart, in North Yorkshire, said that while it wanted to see the problem properly dealt with, Defra could take measures to ease the financial pressure on the region's farmers.

"The problem is in Surrey," he said. We feel there should be a bit more leeway in the North-East."

There are fears the restrictions could spell financial ruin for many farmers and other agricultural businesses in the region, because up to 80 per cent of livestock is due to be sold during the coming months.

Farmers could also find they are unable to move cattle and sheep from high ground to low ground, which may present many with animal welfare difficulties.

Last night, Rachel Gillbanks, of the National Farmers' Union (NFU) in the region, said: "I think this will be absolutely devastating unless we can get the situation resolved very quickly."

She added: "The primary role for us, the industry and Defra, is to contain and eradicate this disease as quickly as possible."

The latest incidence of the disease, only days after the UK was given the all-clear following the outbreak early last month, is about ten miles from the two previous cases near Pirbright, which are thought to have been caused by a leak from nearby laboratories.

The Government's chief vet, Debby Reynolds, said the strain of the virus and its origin had not been identified.

But NFU president Peter Kendall said the chances it was from a different source or a different strain to the previous outbreak were "incredibly small".

Mr Kendall said the latest case would have enormous ramifications for the farming community.

The National Farmers' Union said the value of exports, including meat, meat products and dairy products, was £1.8m a day - a sum that will be lost because of restrictions.

Scientists at the Institute of Animal Health at Pirbright - which was at the centre of the previous outbreak - said they were working to identify the strain of the virus to discover if it was the same that caused infection in two herds last month.

Meanwhile, the European Union reversed a decision to lift the ban on British beef exports, and imposed emergency measures declaring the whole of Britain a high-risk area until the middle of next month.

The ban on livestock movements has come as a serious blow for the last big agricultural show of the year in the North-East.

Officials of Eggleston Agricultural Society, in Teesdale, County Durham, were last night having to come to terms with the cancellation of cattle and sheep classes.

Show secretary George Lawson said: "We always knew that it might be touch-and-go following the first outbreak of foot-and-mouth in Surrey. It proves that the best laid plans of mice and men do not always work out."

The show, due to be held at Stainton, near Barnard Castle, on Saturday, will still go ahead.