The lotfeeding sector in Australia has had a strong start to the year, with its importance in the industry being again highlighted by the varying seasonal challenges facing producers. Cattle on feed and feedlot utilisation were at record highs for the March 2025 quarter, according to the latest Meat & Livestock Australia lotfeeding brief. However, feedlot capacity hasn’t increased so far this year, demonstrating that there could be a cap to the growth for the time being.
There were 1.497 million head of cattle on feed for the first three months of the year, a rise of 3% on the previous quarter, and more than 27% above the five-year average. As usual, Queensland had the largest number on feed, with its second-highest figure behind the June 2024 quarter. NSW reached a new record of 442,735 cattle on feed – a rise of 6.5% from December 2024 – as well as its highest ever utilisation rate of 91%. All states recorded a year-on-year cattle on feed increase of at least 5%, with NSW up more than 20%.
The record national feedlot utilisation rate of 90% was a lift of 3% from the previous quarter, and as well as NSW, was driven by Queensland’s 93% – also a record for that state. This was despite the fact that turnoff also rose, up by nearly 10% in December 2024, and nearly 13% year-on-year. South Australia hit a new record, turning off about 5000 head more than they had in any other quarter prior. Also contributing to utilisation was a stalling in national feedlot capacity, which actually had a very small decrease this quarter.
Grainfed exports are keeping pace, reaching a new high themselves in April of 37,037 tonnes. China and South Korea were key drivers of this, increasing their imports of Australian grain-fed beef by 62% and 46% respectively. China was Australia’s biggest grain-fed beef customer for the March quarter as well, increasing their intake by 27% from the same quarter last year, and taking 32% of the trade.
Figures from the March quarter show the feeder steer price and the feed wheat price continuing to hold a similar line, with steers about 9% dearer than 12 months ago, and feed 10% cheaper. The National Livestock Reporting Service has the national feeder steer price averaging 362c/kg for January to March, with throughput remaining steady, and it currently sits at 363c/kg, so there has been little movement on that front.
What does it mean?
The lotfeeding sector continued its growth in all but one area this quarter – capacity. With margins holding steady and demand also gaining pace, lotfeeders are well placed to capitalise on the lack of grass fattening opportunities currently in the south, if they can continue to get the supply they need. The coming quarters could give us a clear indication if the sector has reached capacity in more ways than one, or if the growth can continue.
Key Points
- The number of cattle on feed rose again in the March quarter to just shy of 1.5 million head.
- Feedlot utilisation also reached a new high of 90% as producers in the south lack feed to finish.
- Grainfed beef exports from Australia were at their highest monthly volume on record in April.
Click on figure to expand
Data sources: MLA, ALFA, Mecardo
