The number of cattle being finished on grain in Australia continues to rise according to the June quarter lotfeeding survey from MLA and ALFA. Feeder steer supply through the saleyards climbed higher to fuel this demand, which pushed prices slightly lower, while the utilisation level - the percentage of the capacity being used - was at its third highest figure ever. Grainfed beef exports also lifted to new highs for the quarter.
For the seventh quarter in a row, the
number of cattle on feed rose from the previous three months, this time up to
above 1.4 million head. This was an increase of 4.7% on the March 2024 quarter,
which was also the exact figure March 2024 lifted from December 2023. It took
the quarter to more than 25% above the five-year-average for the period, and
nearly 13% above the June 2023 quarter.
Fuelling this was an increased availability
of feeder steers through the saleyards, up 4% from the previous quarter and 22%
year-on-year. Queensland was the driver of this, with throughput from that
state rising 23%, while all other states bar SA actually lower. Prices were
also lower, albeit only marginally, with the national feeder steer returns
averaging 323c/kg liveweight, compared to 331c/kg in the March quarter. To put
this into perspective, that price averaged 363c/kg in September, so the buy-in price
has been on the rise and could have an impact on the September quarter figures.
What has also been fairly consistently on
the rise since the June 2022 quarter – and rarely dips very far when it does
lower quarter-to-quarter from time to time – is the feedlot capacity in
Australia. Now above 1.6 million head for the first time, utilisation of this
is at 87% per cent, a figure that has only been higher twice in the past, and
only once since the turn of the century.
Grainfed beef exports were 90,500 tonnes
shipped weight for the June quarter, another record, with key market Japan
lifting above their average intake the biggest driver of this figure. Grainfed
exports to Japan for the year-to-date are up 22% year-on-year. Record overall
Australian beef exports meant that the grainfed portion actually decreased
slightly, to 28% of all beef exports.
What does it mean?
Strong cattle herd numbers have obviously been supporting this growth, and the March-June period traditionally has the strongest figures. It will be interesting to see if high utilisation levels continue now capacity has grown to where it is once the herd cycle moves into its next phase. While grassfed beef continues to make up a majority of Australia’s exports, the markets are clearly there for the grainfed product as well, and increased consistent supply should grow these further.
Key Points
- Cattle on feed rose again for the June 2024 quarter, to a new record of more than 1.4 million head.
- Capacity and utilisation were also on the rise, and grainfed exports for the quarter were above 90,000 tonnes for the first time.
- National feeder steer prices dropped 2% for the quarter, with saleyard throughput up 22% year-on-year.
Click on figure to expand
Data sources: Meat and Livestock Australia , ALFA, Mecardo
