Farmers finishing cattle over the coming winter will need a record high beef price next spring if they are to make a profit.

Irish Farmers Journal analysis shows they will need €4.85/kg for steers and €5.00/kg for heifers next spring to make a profit of €100 per animal. The more efficient bull beef systems will require €4.60/kg.

These prices will be needed because finishers are facing higher feed costs. With silage trading at €40/t and ration prices increasing to €290/t, costs on even the most efficient winter finishing units will increase by the equivalent of 30c/kg deadweight on last year.

Financial risk

Finishers are also facing higher financial risk because of Brexit.

With EU and UK politicians warning businesses to prepare for a no-deal Brexit, the risk of disruption to the Irish beef market next spring is increasing. In the absence of any market support measures being introduced by the EU, the impact on Irish beef prices would be severe.

Currency volatility is also likely to be a major factor in the market in the coming months.