THE Australian Lot Feeders’ Association and Meat & Livestock Australia have released results from the quarterly Lot Feeding Survey.
The survey collects data from National Feedlot Accreditation Scheme-accredited feedlots across the country, covering the sector’s capacity, number of cattle on feed, and turn-off across each state.
The findings are compiled into the quarterly Lot Feeding Brief.
Over the past five years, the Australian feedlot sector has grown by 24 per cent. Despite slowed growth this quarter, the sector remains strong, with the number of cattle on feed staying above 1.4 million head, sustaining record-breaking growth. Capacity has held steady at 1.6m head, resulting in a stable utilisation rate of 87 per cent.
National turn-off in the third quarter rose by 39 per cent (or 241,913 head) to 859,930 head, marking the second-largest quarter on record.
High numbers on feed have now flowed through the system as cattle finish feeding programs. Encouragingly, the sustained numbers on feed suggest that the high turn-off is not a signal of reduced capacity or intensity in current programs.
State-by-state breakdown
Queensland, the largest lot feeding state, slightly declined this quarter in both capacity and cattle on feed. Capacity decreased by one per cent, while cattle on feed dropped by three per cent to 829,2128 head, maintaining 90 per cent capacity. The state turned off just under half a million head, up 10per cent to 499,834 head, the third-largest figure on record.
NSW continues to set state records, increasing capacity by one per cent, and numbers on feed by three per cent, reaching 397,342 head with an 84 per cent utilisation rate.
Favourable conditions allowed feedlots to restock pens, lifting numbers by 42per cent from the previous quarter to 277,883 head.
In South Australia, dry conditions encouraged greater use of feedlots for finishing.
The sector achieved record capacity, up 6per cent, and record numbers on feed, up nine per cent to 75,697 head. Utilisation was nearly at a record 96 per cent despite a record turn-off, which rose by eight per cent to 46,690 head.
The Victorian lot feeding sector experienced minimal change, with capacity and utilisation remaining stable in Q3.
Numbers on feed eased by one per cent to 59,762 head. Victoria was the only state to decrease its turn-off rate, which dropped five per cent to 39,869 head.
Unlike South Australia, Victorian feedlots appear less inclined to absorb cattle for finishing despite dry conditions.
Western Australia experienced an unusually large quarter.
Typically a seasonal sector, Q3 is generally the low point, however, this quarter saw growth across all data points.
Capacity rose by eight per cent, numbers on feed increased by 26 per cent to 62,393 head, resulting in a 70 per cent utilisation rate. Turn-off also climbed 35 per cent from the previous quarter to 45,654 head.
Exports
For the first time on record, grain-fed exports in the September 2024 quarter exceeded 100,000 tonnes carcase weight (cwt), up 11 per cent from the previous quarter record and 19 per cent higher than the same period in 2023.
Despite an overall increase in total beef exports, the grain-fed portion held steady at 28 per cent.
The ongoing drought in the US has impacted global red meat export dynamics, driving demand for Australian beef.
Japan, despite a nine per cent decrease, remains Australia’s largest grain-fed market, importing 32,511 tonnes cwt, or 32 per cent of all grain-fed exports.
This reduction opened opportunities for record-breaking exports to China and Korea.
China accounted for 25 per cent of grain-fed exports, importing 25,059 tonnes cwt, while Korea, our third largest market, made up 21 per cent of exports, with 21,301 tonnes cwt.
The remaining 22 per cent went to other markets, with grain-fed exports to the US rising by an impressive 59 per cent to 4,661 tonnes cwt.
Input prices
Both major feedlot inputs, livestock and feed, have increased this quarter, placing additional pressure on feedlot margins. However, a reduction in both input prices over September offers a positive sign.
Information: Erin Lukey, MLA Senior Market Information Analyst
Moree information: https://www.mla.com.au/globalassets/mla-corporate/prices–markets/documents/trends–analysis/lot-feeding-brief/mla_lot-feeding-brief_november-2024_151124.pdf
