Beef producers face short-term pressure on margins due to higher on-farm costs, Eblex has warned.

Eblex's Business Pointers 2010 report shows average costs for beef and sheepmeat producers up between 3% and 4.2% in April to September 2010 on the year to 31 March 2010.

While sheep farmers were being boosted by improved prices, margins on cattle were under pressure, said Eblex.

However, consumption was forecast to increase and this would boost the beef sector in the long term, it added.