May 18, 2005

Australia's cattle feedlot industry still dominant in Asia

Australia's cattle lot feeding industry appears likely to remain buoyant well into 2006, or until US lofted beef starts arriving in Japan in large quantities. This will leave Australia as the dominant supplier to this lucrative market for the time being.

Beef exports from Australia are valued at more than A$4 billion a year, making the beef cattle industry a cornerstone of the country's agriculture.

Almost 30 percent of beef now comes from cattle fed on grain or prepared mixtures before slaughter, with the balance sourced from cattle grown to maturity on pasture.

The Lot Feeders' Association reported the number of cattle on feed rose 14 percent in the first quarter of 2005 from the fourth quarter of 2004. The number of cattle on feed destined for Japan rose 22% on quarter to a record 519,491 in the first quarter. This represents 61 percent of the total feed-fed cattle exported.

Exports of grain fed beef from Australia in the first quarter of 2005 rose 25 percent to 44,056 tonnes from the year-earlier period.

Overall, Australian beef exports to Japan had high growth since the country banned beef imports from the US in December 2003.