Concerns are growing that bank finance required to underpin winter cattle finishers may not be available this autumn.

Reports are emerging of long-established finishers being asked by banks to provide letters of comfort from beef processors prior to loan approval.

Winter finishing margins have traditionally been tight but the added risks around Brexit appear to causing banks major concern in relation to spring beef prices. A hard Brexit leading to WTO tariffs would effectively see Irish beef shut out of the largest export market.

Volatility

The possibility of exchange rate volatility as the Brexit deadline of 29 March approaches is also a concern, as currency fluctuation affects the profitability of the beef sector. Winter finishers are vital to the autumn trade for store cattle.