Winter beef finishers will need over €5/kg this winter to break even, Irish Farmers Journal analysis has shown.

Increased meal costs and higher store prices are the main drivers behind the increased price required to make winter finishing viable.

For the last number of years, the margins in winter finishing have been declining, with many farmers now incurring huge losses on the enterprise.

The analysis shows that the price required to break even is €5.04/kg

Processors have refused to guarantee prices for farmer finishers and have kept contracts confined to feedlot finishers who are putting through big numbers every week.

The analysis shows that the price required to break even is €5.04/kg.

When a €100/head margin is built in to cover fixed costs and labour, the required price rises to €5.29/kg.

The model uses a high level of efficiency for liveweight gain and a current cost for inputs.

Meal prices have increased by €30/t to €40/t in the past few months and this is having a negative effect on finishing systems.

Bull systems will generally take at least 1.5t/head to finish young bulls

While the analysis looked at finishing steers, the price rise will be felt even more acutely by bull finishers.

Bull systems will generally take at least 1.5t/head to finish young bulls so farmers will spend an extra €50 to €70/head on meal costs alone in these systems.

Beef price

Meanwhile, beef price remains steady this week, with all processors now paying a €4.20/kg base for bullocks and €4.25/kg for heifers.

Farmers with numbers have been able to squeeze more out of the market.

Increased demand from the UK has put an extra bite in the trade in the last few days.

Cows have also seen an improvement, with factories now at €3.90/kg for R grading cows.

U grading cows are coming in at €4/kg to €4.05/kg depending on age and fat cover.