Beef farmers have been warned by Teagasc, the agriculture and food development authority, that recent increases in cattle feed costs will create "very difficult challenges this winter".
Teagasc Drystock Programme Manager, Bernard Smyth, said that if the system of fattening cattle for market in the winter remains unprofitable, producers are likely to revert back to producing beef off grass making it difficult to service the UK and European consumer markets.
Cereal prices have been driven upwards this year by increased global demand for both feed and cereals as fuel sources and by low yields in major producing countries like Australia.
In a statement, Mr Smyth said increases in the cost of concentrate feeds are now threatening all finishing systems where there is a heavy dependence on concentrates in the diet.