July 26, 2010

Australian cattle numbers in feedlots up 11%

Cattle numbers in feedlots in Australia, the second-largest beef exporter, rose 11% in the June quarter boosted by processor demand and larger-than- expected sorghum supplies, according to an industry survey.

Numbers increased to 790,772 at the end of the quarter compared with 711,198 three months earlier, the Sydney-based Australian Lot Feeders' Association and Meat & Livestock Australia said.

The association said demand from processers seeking feedlot cattle was boosted as rainfall in eastern states this year revived pasture growth, curbing supply from grazing herds. Planting of sorghum, fed to livestock placed in feedlots, dropped last season because of dry weather, according to the Australian Bureau of Agricultural and Resource Economics.

"The northern sorghum crop proved better-than-expected and export sorghum demand was only modest, leaving sufficient supplies to encourage cattle placements in northern New South Wales and Queensland," lot feeders' association President Jim Cudmore said. The two states accounted for about 86% of the total feedlot numbers, the survey showed.

Grain-fed beef exports declined 2% during the period compared with the previous year, with shipments to Japan falling 6% and exports to South Korea rising 28%, according to economists.

Almost two-thirds of Australian feedlot production is destined for export markets, according to the lot feeders group. Brazil is the world's largest beef shipper.