Huge turn-off: Grain fed beef sales surge

Grain fed beef sales are up and it’s a direct flow on from huge numbers in feedlots. We break down the latest figures.

Burgeoning demand for Australian grain-fed beef has seen almost 860,000 cattle turned off from feedlots in the September quarter.

And the huge turn-off, the second biggest on record, has pushed grain-fed beef exports to more than 100,000 tonnes in the three-month period.

The results of the latest quarterly feedlot survey showed there were still 1.4 million cattle on feed, pointing to the supply surge staying on track and contributing to what will be Australia’s biggest beef export year ever.

Australian Lot Feeders Association president Grant Garey said there were relatively stable margins in feedlotting despite increases in feed and cattle prices.

And he said the industry continued to grow.

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

Mr Garey said turn-off figures for the quarter were up 17 per cent on the previous quarter and were 39 per cent higher than the same period last year.

The turn-off of 859,930 cattle also made it the second largest turn-off volume on record for a three-month period.

“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.”

The major markets for grain-fed beef were Japan (32 per cent), China (25 per cent) and Korea (21 per cent).

Meat and Livestock Australia senior market information analyst Erin Lukey said the increase turn-off from feedlots, and bigger carcasses from longer feeding regimes were contributing

to Australian record beef export figures.

“Multiple years of drought conditions in the United States 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,” Ms Lukey said.

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

But Ms Lukey said margins were tightening for the feedlot industry.

“Livestock and feed are the two main inputs for feedlots,” Ms Lukey said.

“Both major inputs being up this quarter have placed additional pressure on feedlot margins. “However, looking at monthly prices, a reduction in both over September is a positive move.”