October 23, 2009

The number of cattle in Australian feedlots during the September quarter was up 17 percent on-year to 743,052 head nationwide, as lower feed grain and cattle prices offered some respite from the weak export scene and rising A$.

Influenced by cheaper grain, lower feeder cattle prices and increased availability of suitable cattle, the number of cattle in Queensland feedlots during the September quarter jumped six percent on the previous quarter and 14 percent year-on-year, to 439,621 head.

Lower costs have assisted an increase in the numbers of cattle on feed, with grain prices back 15-41 percent year-on-year and cattle prices averaging three-percent cheaper. However, demand and prices for grainfed beef continues to be constrained by the poor economic conditions in Japan, along with the higher A$.

While the volume of grainfed beef exports to Japan in the September quarter remained steady year-on-year, at 39,800 tonnes swt, export returns for Australian chilled shortfed fullsets averaged 12-percent lower.

Offsetting the increase in Queensland numbers on feed was a seasonal decline in Western Australia, while New South Wales numbers increased 11 percent year-on-year.

Reflecting the tough export conditions, there was a shift in cattle on feed towards the domestic markets, with 30.6 percent on feed intended for the domestic market, compared with 25.9 percent in September 2008.

Feedlot capacity increased to a record 1.27 million head in the September quarter, up 100,000 head on the same period last year.