May 17, 2006

Australian feedlot cattle up 4.6 percent on-year

The number of cattle in Australian feedlots have been rising on stronger demand, the Australian Lot Feeders Association reported Tuesday (May 16).

The number of cattle in feedlots rose 22 percent to a record 895,676 at the end of the first quarter compared to the fourth quarter and was up 4.6 percent on-year, according to a quarterly survey by Meat & Livestock Australia Ltd (MLA).

Malcolm Foster, president of the association, said some of the quarterly increase is due to seasonal trends, but there were also strong factors from the markets.

The exit of US beef from the Japanese markets was a significant contributing factor, as were unfavourable weather conditions and deteriorating pastures in eastern Australia which forced more animals into feedlots, said Foster.

Out of the 8 million cattle slaughtered in 2005, a record 2.6 million was sent to feedlots.

The number of cattle on feed in the first quarter for the domestic market was 15 percent higher than the year-earlier quarter.

Foster said the increase was a result of higher expectations from domestic consumers.

The survey found the capacity of feedlots in the first quarter was 1.1 million, up 10 percent from the year-earlier quarter.

However, capacity utilisation was slightly down from 86 percent in 2005's first quarter to 82 percent the same quarter this year.