By Anna Burdett Farming and rural affairs editor

Last updated 08:51, Friday, 21 November 2008

A CUMBRIAN beef farmer believes the industry is on the brink of a dramatic turnaround after enduring a 20 per cent hike in production costs last year.

Efficient: One of the top beef farmers in the country, Neil Fell of Wheelbarrow Hall, Aglionby near Carlisle, has been struggling to turn a profit despite a rise in the price which he can sell his cattle for. The increase had been wiped out by production cost rises, but as these fall back, there is hope for a better farm income next year

Feed and fertiliser price hikes wiped out the £100 a head market increase on beef this year, leaving farmers struggling to make a profit.

But this has started to turn around according to Neil Fell, who rears 750 cattle at Wheelbarrow Hall, Aglionby.

Fertiliser prices are already tumbling from their £430 per tonne high and should, he says, fall until the spring.

Feed costs are also dropping fast thanks to a successful wheat harvest this year.

Mr Fell said: “We’re in a stronger position because the price of oil has dropped. Hopefully, we’ve peaked at the highest cost of production.

“Fertiliser has the potential to fall in price until the spring.”

Mr Fell runs one of the most efficient beef farms in the country according to the Red Meat Industry Forum, which bench marks farmers.

Wheelbarrow Hall was in the top 10 per cent of most efficient farms.

He added: “If I’ve been struggling then the bottom 10 per cent must be feeling it more. I don’t think I can get much more efficient or save any more costs.”

He watches the markets as closely as he watches his livestock. He said: “The most important part of our business is the food rationing. I’m always looking to forward buy or gamble on something.”

The National Beef Association says the high fertiliser prices led to a 20 per cent rise in the overall cost of running a typical beef farm in 2008.

This has filtered through to consumers who, according to one Wigton butcher, are paying 50p per lb more than at the start of the year. David Paisley says his customers have abandoned the expensive cuts.

He said: “Instead of buying a full side of beef, we’ve started buying brisket or stew.”