August 25, 2006

 

Australia's feedlot capacity expands 10 percent in 2005

 

 

Australia's feedlot industry has reached record capacity and numbers of cattle on feed in the June quarter of 2006, according to a ALFA/MLA feedlot survey.

 

Australia's feedlot capacity has expanded by 10 percent in the last year, while the number of feedlot cattle was 7 percent higher as investors, buoyed by increasing confidence in the country's expanding beef industry, poured money into feedlot expansion.

 

Feedlot capacity has grown 25 percent since US beef was banned from Japan and South Korea in late 2003 due to mad cow disease.

 

A record 940,000 cattle were on feed at the end of June.

 

Over the 2005-06 fiscal year, a record 2.59 million cattle were marketed by feedlots - up 5 percent on-year.

 

Feedlots now account for a third of total adult cattle slaughter.

 

Australian beef exports to Japan and South Korea remained strong despite an expected surge in US beef exports once both markets are opened.

 

A record 8,600 tonnes of grainfed beef were exported to South Korea and over 47,000 tonnes to Japan.

 

Growing feedlot capacity, strong export and domestic demand and dry weather have fueled young cattle prices this year.

 

However, feed grain prices may rise and supply of feeder cattle may be affected if current dry weather continues, industry sources said.