The worst fears of cattle finishers have come to pass, as a hoped-for late-season lift in prices has failed to emerge. Back in late March, losses for finishers were estimated at €500/head by Teagasc’s David Argue at the Abbeyleix meeting for finishers organised by the Irish Farmers Journal. Since then, factory prices have continued to drop, adding to the losses experienced through the winter months. One finisher gave the following example: “I bought 30 Angus Friesian heifers last autumn,” he said. “When I sold them, I had lost €27/head on them, just taking the purchase price, the cost of borrowing and haulage into account.”

In other words, the sale price didn’t even cover the cost of purchase of these animals.

“When you add in feed and veterinary costs, the losses on these animals get frankly quite scary,” he added.

In addition, finishers have continued to be forced to wait to get their cattle killed, adding to losses. Apart from the deteriorating price, feed efficiency declines significantly, with the likes of Angus cattle only likely to lose conformation as they are fed past optimum.

Delays in having fit cattle killed also work against the Climate Action Plan target to reduce slaughter age, toward which aim much work has been carried out on the breeding side.

Another finisher highlighted how he and others had paid the best price they possibly could for store cattle last autumn.

“We were very good, we gave every penny we’d earned back to the suckler farmer, but now we’re struggling to get them killed. It will be a very different story this autumn.”

Another farmer said he is making as much silage as any other year but that “it could be all for sale come September”.

Another pointed out that continuous cuts in direct payments to cattle finishers will also impact.

“The safety net is gone, there’s no big payment coming this autumn to offset the losses of the winter and spring just gone,” he said.

“The impact of those losses will be quickly felt in autumn sales, there’s no big BISS payment to boost buyers budgets.”

IFA livestock chair Declan Hanrahan said that the market might be finally turning.

“Factories are looking for cattle this week. Increased retail sales, and increased demand for food service over the summer, must rise beef rises in key markets. Supplies are finely balanced; sell hard,” he said.