May 21, 2007

Australia's cattle feedlots drop by 4 percent in Q1

The total number of cattle on feed across Australia fell during the first quarter of 2007 due to high grain costs which slowed demands from north Asian markets and stronger Australian currency.

Figures from the Australian Lot Feeders Association and Meat and Livestock Australia (MLA) show that as of March 2007, cattle on feed fell back 4 percent on the previous quarter and 2.5 percent on March 2006, to 873,265 head. Numbers in Queensland were back 7 percent on the same period last year, to 423,923 head; while in contrast, New South Wales recorded a 4 percent increase, to 297,305 head.

Interestingly, the number of cattle on feed in feedlots which was more than 10,000 head during March has jumped by 4 percent on the previous year, to 503,435 head. In contrast, the poor feeding margins saw numbers in smaller feedlot categories all decline, particularly those between 1,000 and 10,000 head, which fell 10 percent. The increase indicates larger operations are more determined to hurdle the obstacles at this stage, according to MLA.