Australian cattle-on-feed numbers reach a seven-year record
The number of cattle on feed in Australia has increased to their highest level in seven years, due to dry conditions at the beginning of the year, ABC reports.
The March quarterly feedlot survey showed 63,000 more cattle entered feedlots to reach 874,000 head overall across Australia, an 8% increase on the previous quarter.
Australian Lot Feeders' Association president Don Mackay said strong demand for grain-fed beef exports has driven the surge in feedlot numbers.
"There's a generally strong demand for all beef, but particularly grain-fed beef into international and domestic markets, so there's a strong sort of pull into the feedlot sector and these numbers reflect what was occurring pre the rain that we had in early autumn."
The dry conditions have led to cheaper cattle prices, but have also pushed up prices for grain and fodder, offsetting some of the lot feeder margins.
Mackay said Darling Downs wheat and barley averaged US$309 to US$320 per tonne for the March quarter, up 17% and 23% year-on-year respectively.
Nationwide, feedlots are at 79% capacity, with some big differences between states: New South Wales is at 74% capacity, Victoria 76%, Queensland 81%, South Australia 103% and Western Australia 80%.
