More records for Australian beef as feedlot sector sustains strong growth in September quarter

Australia’s grain-fed beef industry has posted another record quarter, with the number of cattle on feed lifting in almost every State to more than 1.42 million head nationwide.

Feeding capacity also shot up in the September quarter, rising by about 67,000 head on the same time last year to a record 1.64 million.

The figures were revealed in the latest quarterly feedlot survey published on November 15 by the Australian Lot Feeders’ Association and Meat and Livestock Australia.

Queensland dominated with capacity of 918,874 head and 829,198 cattle on feed in the September quarter, though the latter figure was down about 24,000 head on the record it set three months earlier.

In WA, numbers on feed rose more than 12,800 head to 62,393, while feeding capacity lifted from 83,314 to 89,614.

Feedlot use nationwide remained close to record levels at 86.7 per cent.

Despite rises in feed and feeder steer prices, ALFA president Grant Garey said increased supply of feeders had “encouraged a new business as usual” for lot feeders, who were taking advantage of relatively stable margins.

“The Australian feedlot sector has grown 24 per cent in just the past five years,” he said.

“While the numbers on feed lifted just 6200, and capacity is up less than 6000 head, it is comforting to see the sector can maintain size after over two years of impressive growth.”

Mr Garey — who replaced Barb Madden as president at ALFA’s November 12 annual general meeting — said small increases in capacity and numbers showed maintenance in the sector over the past six months.

Turn-off figures lifted 17 per cent from the previous quarter and 39 per cent from the same quarter last year, reaching 859,930 head — the second-largest volume on record.

“The recent period of high numbers on feed has now flowed through the system as cattle finish programs,” Mr Garey said.

“Encouragingly, with numbers remaining solid, this high turn-off is not indicating any move to reduce the capacity and intensity of current programs.”

Meanwhile, beef exports hit a record 365,842 tonnes after lifting 12 per cent on the June quarter, with grain-fed beef accounting for 28 per cent of the total volume.

MLA senior market information analyst Erin Lukey partly attributed the record to larger carcases from longer programs exiting the system.

She said individually, Australia’s top three markets for beef exports had remained “solid”.

“Japan remained our largest grain-fed market, despite a 9 per cent reduction, making up 32 per cent of all grain-fed exports,” Ms Lukey said.

“China made up 25 per cent of export share, while Korea made up 21 per cent of exports.

“Multiple years of drought conditions in the US has led to a US focus on domestic consumption, increasing the market share of high-value Australian beef in the shared markets of Japan and Korea.

“Additionally, grain-fed exports to the US have lifted 59 per cent into a traditionally grass-fed lean market.”