The virus had a huge impact in Wales

The Swansea firm of estate agents behind the venture said the cost of stricter rules on bio-security aimed at preventing any further possible disease outbreaks could not be justified for the size of the turnover.

The Farmers' Union of Wales described the decision as a "sad blow to the farming industry in the area".

The news comes in the same week the first livestock market in Wales reopened in Carmarthen after a break of almost a year.

Martin Jenkins, a partner in market operators Rees Richards and Partners, said they had little choice but to close Gowerton market for good as the cost of the works would have exceeded the market's income.

The market relocated to its Gorwydd Road site in 1927 after being founded by his great, great grandfather in the late 18th century.

Gowerton market used to handle 1,000 lambs per week

He said: "It is a great pity that we have to close the market because I was the fifth generation of the family still involved in running it.

"But we came to the decision not to reopen because of the substantial cost of upgrading the facilities and the loss of buyers.

"It is only a small operation, selling between 30 and 35 fat cattle a week and 500-1,000 lambs, and for that amount of business it would not have been viable to have carried out the necessary works."

FUW president Bob Parry, said: "They are facing very real problems with so many new bio-security and cleansing measures imposed by Defra in the wake of the foot-and-mouth outbreak.

Great loss

"Together with the loss of small slaughterhouses, it is putting a big burden on farmers who now have to travel much longer distances to avail themselves of traditional facilities crucial to the smooth and economic running of their businesses."

Markets must submit to an inspection by the rural affairs ministry Defra before a licence can be granted.

The first foot-and-mouth case was declared in Wales on 27 February 2001 and the outbreak reached its peak at the end of March - there were 118 cases in Wales.