Grain-fed beef hits new highs for capacity

Records are being broken in the feedlot industry as both numbers on feed and grain-fed exports hit new highs. See the reasons behind the surge.

There is a record number of cattle on feed and grain-fed beef exports are also creating new highs. Picture: Zoe Phillips

Records are being broken in the feedlot industry as both numbers on feed and grain-fed exports hit new highs.

The surge reflects favourable trading conditions of cheaper cattle and feed combined with buoyant demand on the export front for grain-fed beef.

The quarterly feedlot survey released last week showed there were 1.4 million cattle on feed and the industry has the ability to feed 1.6 million cattle if feedlots were at full capacity.

And grain-fed exports also hit a new high, with 90,500 tonnes sent from April until June, 15 per cent higher than the five-year average.

Meat and Livestock Australia and the Australian Lot Feeders Association surveyed feedlots on their numbers and ALFA president Barb Madden said the lift was due to confidence in the feedlot production system and continued positive trading conditions, along with increased feedlot capacity.

“Feedlot capacity is an enabler of growth in the number of cattle Australia can have on feed,” Ms Madden said.

“The Australian feedlot sector’s capacity has grown by 5 per cent year-on-year and is the first time capacity has exceeded 1.6 million.”

The survey results confirm what has been seen in saleyards across southern Australia this winter, where cattle with weight (above 400kg) have been chased hard by feedlot operators.

RMA Network chief executive Chris Howie said feedlotters seemed to have enough cattle at the moment to not cause a huge lift in rates but returns were still strong.

“We are seeing prices of about 420c/kg liveweight for Angus cattle that are European Union-accredited,” Mr Howie said.

“Feedlots don’t have to push too hard and there has been a lift in rates but you have to remember it was coming off a very low base.”

MLA senior market information analyst Erin Lukey said the national feeder steer indicator lifted in the June quarter to be 22 per cent higher than the same time last year.

The biggest feedlot state is Queensland with 853,439 on feed at the end of June, up more than 50,000 on the March quarter. Victoria had 60,351 on feed at the end of June, down slightly from March but higher than this time last year.