NORTH Devon beef farmers have already been keeping a worrying eye on recent trends in the beef market.

Now they are further concerned by the effects of the drought in Russia, with concerns that the price of grain could escalate, adding to shrinking profit margins.

British livestock chairmen have already issued a joint statement warning that the long term sustainability of UK beef production is being threatened by the continuing low beef price.

They have said: "The drought in Russia, and reduced harvest yields in other parts of Europe, is already having a major impact on the price of grain, while fuel prices also remain very high."

Fears are clearly mounting that production costs will continue to escalate on the back of rising feed and bedding costs expected this winter.

The worry is that at current prices beef producers would be unable to afford to produce beef this winter, with some perhaps questioning their future in the industry.

The livestock chairmen are calling for farmers to be given support so that they have the confidence to go forward.