The National Audit Office (NAO) has also found the UK Government was warned about the disease two years prior to the outbreak and should have done more to combat the threat.

Sir John Bourn confirmed the outbreak in Wales cost the government £102m, while it cost for Britain as a whole reached £8bn.

Disease in Wales

70,000 slaughters on infected premises 216,000 slaughters due to dangerous contact 833,000 slaughters for welfare reasons Cost to Defra: £102m Average farm clean-up: £44,000 Loss to producers: £65m Loss to food industry: £25m Cost to UK private sector: £5bn Total lost UK GDP: 0.2%

Six million animals were slaughtered in the crisis, which the NAO says cost the government £3bn and tourism and the rural economy more than £5bn.

Sir John said a more thorough contingency plan was needed to allow better preparation for any future outbreak.

Farmers' Union of Wales leader Bob Parry, who contributed to the NAO report and criticised the handling of the outbreak, said he felt vindicated.

"The FUW has consistently argued that the contingency plan in force for last year's outbreak was hopelessly inadequate," he said in a statement.

"The union submitted evidence to the NAO pointing out the apparent total lack of contingency planning to deal with a disease on this scale.

"The FUW also expressed concern over an apparent lack of communication between government departments in London and Cardiff assigned to tackle the disease.

"The government's initial response was slow, allowing the disease to spread throughout the country."

The report reads: "In many areas, the resources needed to deal with the disease rapidly went beyond what had been envisaged in contingency plans."

Carmarthen East and Dinefwr AM Rhodri Glyn Thomas welcomed the publication of the report, and was critical of the gaps in protection measures.

Hundreds of thousands of animals were culled

"Because of a lack of a contingency plan, the minister and officials at the assembly were in crisis management from day one," he said.

"There was no opportunity to take a strategic view of the situation - no real consideration given to any other response other than destroying any animal suspected of being in contact."

'Unreliable' plan

The Department for Environment, Food and Rural Affairs has agreed with the NAO report's conclusion that lessons need to be learned.

The report was published on Friday as new fears of foot-and-mouth emerged in a Leicestershire abattoir where a pig is thought to have showed signs of the disease.

Samples were urgently taken for testing and scientists hoped to have results Friday.

Meanwhile, new Welsh Rural Development Minister Mike German is embarking on his first appointment, meeting Builth Wells organisations involved in community regeneration projects.