What the latest feedlot numbers say about red meat production
The numbers of cattle in feedlots has increased. See the breakdown of figures and why the experts say they are the new normal.
Australian feedlots have taken advantage of cheaper cattle prices by increasing the numbers they have on grain.
The latest feedlot survey results were released today and show Australian lot feeders have more than 1.145 million cattle on feed.
It marks a stellar result for the industry, which has now broken the million mark for 20 quarters, or five years, with all states showing lifts in utilisation.
Australian Lot Feeders Association president Barb Madden said the one million mark was “a new normal for the feedlot industry”.
The 1.145 million in the December quarter was up almost 90,000 on the September quarter’s results.
“The uptick in cattle on feed from the previous quarter occurred alongside improvements in cattle and grain input costs, which softened slightly,” Ms Madden said.
“However, labour and energy costs remained challenging, and the weakening global economic outlook continues to weigh on lot feeders’ minds.”
Ms Madden said despite the challenges, feedlotters were continuing to expand, with the ability to now feed 1.532 cattle.
Meat and Livestock Australia senior market analyst Ripley Atkinson said feedlot utilisation lifted by 5 per cent in the past quarter to 75 per cent.
“Feedlot utilisation rates are a good indicator of feedlot buyer demand and this increase coincided with a decline in the national feeder steer indicator during the latter half of 2022 and softening of grain input costs, which favoured feedlot buyers during the period,” Mr Atkinson said.
The biggest feedlotting state remains Queensland with 675,872 cattle on feed, followed by NSW with 318,905, Western Australia with 59,235 and Victoria with 49,404.
Meanwhile, the feeder steer indicator monitored by Meat and Livestock Australia closed last week at 384c/kg, down from its peak of 571c/kg this time last year.
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