Grain-fed beef exports gain ground in latest figures

Grain-fed beef exports are having a record year, but the good news for the red meat sector has not flowed back to producers.

Grain-fed beef exports are already creating records this year as the feedlot sector holds steady on numbers.

The 234,000 tonnes of grain-fed beef exported to date this year are the highest ever, underpinned by more than 85,000 tonnes in the September quarter alone.

Meat and Livestock Australia global supply analyst Tim Jackson said the major customers for Australian grain-fed beef had started to take more after flat spots earlier in the year.

“The top three markets (have) supported this record export year,” Mr Jackson said.

“After a slight easing in the second quarter, Japan and South Korean markets recovered, increasing by 3 per cent and 10 per cent respectively.

“Exports to China maintained growth for the third quarter in a row, to 22,988 tonnes.”

While the lift in grain-fed exports is good news for the red meat sector, it has not flowed back to producers.

Mr Jackson said the feeder steer indicator, monitored by the National Livestock Reporting Service, dropped 46c/kg liveweight in the September quarter compared to June quarter, and was 42 per cent lower than a year ago.

Despite the cheaper buy in price for cattle, feedlot numbers have remained static in the past quarter in the latest survey results for the sector.

While there were increases in NSW (up 2.9 per cent) and Queensland (2.1 per cent), these were balanced by a 4.9 per cent decline in feedlot numbers in Victoria and a 42 per cent fall in Western Australia, though this is a traditional seasonal fall.

Australian Lot Feeders Association president Barb Madden said historically high numbers of cattle on feed in the past quarter “reflect continued strong demand for grain fed beef”.

“They also serve as a reminder of the role the feedlot system plays when conditions become less favourable in the paddock,” Ms Madden said.

“We have seen strong placement of grain-fed beef in our key export markets of Japan, South Korea and China which occurred during the last quarter, and it is pleasing to see continued demand for our product in these markets despite cost of living pressures.”

Ms Madden said while no one liked to see dry conditions, the feedlot sector had been able to absorb some of the turn-off from producers.

While the national capacity of feedlots rose 1.4 per cent to 1.58 million, the utilisation rate was steady on the past quarter, at 80 per cent.