Yet another record has been set for the number of cattle on feed in Australia, which reached 1.354 million head in the March 2024 quarter.
According to Meat and
Livestock Australia and the Australian Lotfeeding Association’s latest feedlot
survey, it was the sixth quarter in a row that numbers on feed increased. With
capacity remaining stagnant, utilisation also rose in the March quarter. No doubt the growing herd has meant more
availability of feeder cattle, and prices have remained favourable for
lotfeeders.
Cattle on feed figures
lifted by just shy of 5% on the previous quarter and were 22.4% above the five-year
average for the January to March period. It was also a 17% rise on the same
quarter in 2023. Numbers on feed in Queensland and South Australia were at
record high levels, having lifted 7% and 11% respectively from the previous
quarter. NSW was the only state to see a decline in cattle on feed, by just 2%,
but it was still the second highest figure on record (the record being set in the
December 2023 quarter) and nearly 15% above the five-year average.
As mentioned, feedlot
capacity remained basically on par, falling by about 600 head on the previous
quarter to 1.593 million. This meant utilisation lifted from 81% last quarter
to 85% in March, the highest level since March 2022. This was again aided by
Queensland (90%) and South Australia (96%). Highlighting the number of cattle
that went onto feed last quarter was the rise in marketings, or turn-off, which
rose 12% on the previous quarter to 761,550 head. This was also about 10%
higher than the same quarter last year, and the biggest volume since March 2020,
which was a record number.
Another figure that was
historically high in the March quarter was the feeder steer throughput, which
lifted 13% from the December quarter to the strongest numbers since March 2018.
MLA’s feeder steer indicator lifted in the March quarter to 311c/kg, more than
30% higher than the previous quarter, but still at pre-2020 levels. Darling
down wheat prices went in the other direction, 15% lower on December 2023 to
sit at $375/tonne.
What does it mean?
Lotfeeding continues to be a growing sector in the Australian beef industry, and the above increases show that it is playing a very crucial role in ensuring the growing herd has enough markets to support producer prices. Lower grain prices are helping lotfeeders margins, and so are prices for cattle which are still well below the record highs seen in 2021.
Strong turnoff is the big one from the March figures, with that increase proving demand, has also been on the increase at the other end. Grainfed beef exports have kept pace with growing overall Australian beef exports, making up 30% in the March quarter, up just 2% from December.
Key Points
- Cattle on feed reach record highs of 1.3 million head as capacity remains stagnant.
- Utilisation reached 85% and marketings was at its highest level in four years.
- Lower feed grain costs and feeder cattle prices have supported stronger margins for feedlots.
Click on figure to expand
Data sources: MLA, ALFA, Mecardo
