Cattle finishers are currently losing almost €250/head on store cattle bought earlier this year, Irish Farmers Journal analysis shows.

MartWatch data shows that a Charolais-cross steer in January 2020 at 550kg and selling this week at a base price of €3.40/kg is losing almost €250/hd.

Based on a purchase price of €1,265 and combined feed, haulage and health costs of €396hd, that equates to a total cost of €1,661. Killing a U- 700kg steer last week at 55% kill-out results in a 385kg carcase weight.

At a base price of €3.40/kg, the steer grosses €1,432. That is a loss of €229 to the farmer.

Bull finishers are under particular pressure, with bull beef out of favour with factories.

On Tullamore Farm, bulls were killed last week at 14/15 months and averaged 382kg carcase weight. Three bulls graded a U-, with two bulls grading a U=. All five were 3= or greater on fat. They came into €1,390/head each.

The same bulls, killed in 2019, would have grossed €1,581 each. At 2018 prices, they would have made €1,665 each. That’s a drop of €275/head inside 24 months.

Such pressure calls into question the future of any beef finishing enterprise.

The scale of losses happening on beef farms around the country is starting to hit farmers’ bank accounts. This week’s beef quotes, while steadied at €3.40/kg, are still a long way off what is required to clear bills on drystock farms.

There is a real risk that the current issues in the sector will have a lasting negative impact on beef producers, with some suckler farmers contemplating not letting stock bulls back out, things have got so bad.

There is a little more life in the beef trade this week, with some factories having to pay more to secure stock.