Record number of cattle in feedlots, new figures show

The feedlot industry is breaking records on grain fed beef and the big players are getting bigger. See the latest figures including a state by state breakdown.

The lot feeding industry has weathered the double whammy of high grain and cattle prices with a record number of cattle in feedlots for the first quarter of the year.

At the end of March, there were 1.269 million cattle on feed across Australia, with the new level more than 30,000 higher than the previous best set during the northern drought at the end of 2019.

The feedlot industry has also reached its highest utilisation, a feat given the increasing capacity across Australia, with feedlots 85 per cent full.

Australian Lot Feeders’ Association president Barb Madden said historically, high cattle on feed numbers coincided with drought periods.

“(But) these record numbers of cattle on feed have been achieved in a herd rebuild environment when feeder cattle prices are high and livestock supply is tight,” Ms Madden said.

“These latest results indicate that the feedlot industry continues to support beef production despite favourable seasonal conditions experienced across most of Australia.”

Ms Madden said the latest numbers reflected long term confidence in grain feeding production systems.

“Lot feeders are closely monitoring the current strong global grain market and impact Covid-19 has had on commodity supply chain logistics here domestically,” she said.

Meat and Livestock Australia market information manager Steve Bignell said feedlot capacity continued to grow incrementally across Australia which reinforced “the long-term confidence and investment in the industry”.

“Capacity keeps climbing as projects come online and utilisation has remained strong, indicating that lot feeders have filled the additional pens being built,” Mr Bignell said.

The biggest rise in numbers of feed was seen in Western Australia, which increased 83 per cent and was partially due to a 27 per cent increase in capacity.

“The growth in capacity and sustained levels of utilisation, despite high feeder cattle prices, points to the importance the grain feeding production system has in Australia’s ability to service demand for high quality Australian beef,” Mr Bignell said.

Queensland also had a lift in numbers on feed, up 8.6 per cent to 748,135 at the end of March.

“The growth in cattle on feed in Queensland showed that despite slaughter and yardings being subdued for the year, producers were still selling cattle to feedlots in large numbers,” Mr Bignell said.

Victoria feedlots had 62,575 cattle on feed as at the end of March, a rise of 13 per cent compared to the end of December but is the fourth smallest lot feeding state.

Queensland remains the biggest player (748,135) followed by NSW (340,295), WA (73,424), Victoria (62,575) and South Australia (45,498).