The Minister for Communications Pat Rabbitte has said that if fraud is found to be behind the latest twist in the horsemeat scandal, then those responsible will be punished.
Mr Rabbitte's remarks follow the launch of an investigation into operations at B&F Meats in Carrick-On-Suir, Co. Tipperary.
Production at the factory was suspended yesterday after it was found to be exporting horsemeat labelled as beef to the Czech Republic.
Minister Rabbitte said it is vital to get to the bottom of this latest development.
He said: "I think the owners of the company have to be amenable, and made amenable, for what has happened because we are very proud of our food industry in this country.
"It is a huge source of jobs and the creation of wealth. Our quality product is accepted as such throughout the European Union and indeed throughout the world.
"Activity like this has been revealed and it cannot go unpunished."
In Italy, the health ministry have said tests carried out on Nestle beef products seized this week have shown they did not contain horsemeat.
On Thursday, Italian police seized 26 tons of beef from Nestle to carry out tests.
Last Monday, Nestle, the world's biggest food company, withdrew two types of pasta meals from supermarket shelves in Italy and Spain due to a suspected contamination.