THE Australian grainfed beef industry has gone within a whisker of topping 1.5 million head on feed for the first time, with March quarter cattle on feed numbers released this morning.

The official number at the end of March was 1,497,325 head, setting a new industry record, and continuing a sharp progression that started back in December 2023, with new records set in most quarters since then.

The latest cattle on feed figure is a massive 142,000 head higher than this time last year, and 47,000 higher than December.  The likelihood of a new record COF figure being set was flagged when April monthly beef export data was released a fortnight ago, showing grainfed exports at an all-time high of 37,038t. Click here to view April export report.

As discussed in Beef Central’s earlier Top 25 Lotfeeders report, industry feeding capacity has continued to surge, mostly through expansions at existing feedyards, but also some new sites being established.

Also helping post the new COF record was higher utilisation of available pen space, hitting 90.3pc in the March quarter, up from 87.5pc in the December quarter. Utilisation above 90pc is considered difficult to achieve in commercial terms, because of maintenance, pen cleaning and other activity.

Feedlot capacity reduced marginally in the March quarter, but still sat close to all time-records at 1.656 million head.

Most states showed rises in cattle on feed in the March quarter, with Queensland up 12,000 head to 851,190 (57pc of the national total); NSW up 27,000 head to 442,000; Victoria up 3000 head to 69,000; Western Australia up 5000 head to 62,000; and South Australia 1000 the better to 71,000.

Dry conditions across southern Australia have increased reliance on lot feeding as pasture availability tightens. Victorian feedlot utilisation rose to 93pc last quarter, its highest level since the 2019 drought.

In total there was a record 859,000 grainfed cattle turned off during the March quarter – up 97,000 head or 13pc on this time last year.

Grant Garey

Australian Lot Feeders Association president Grant Garey said the past 12 months had highlighted the versatility of the Australian lotfeeding sector and its vital role in supporting national food security.

“Australian feedlots continue to lift productivity, delivering high-value grainfed beef to meet strong global demand,” he said.

“At the same time, they’re proving essential in finishing cattle during dry and drought-affected periods, reinforcing their importance in a resilient supply chain.”

“Southern feedlots have adapted their finishing programs to accommodate the dry conditions, enabling fast turnover of cattle, while in the north, growing international demand for grainfed beef is driving system-wide productivity gains,” Mr Garey said.

An ALFA statement said drought is an inevitable feature of Australia’s climate.

“As the national peak body for grainfed beef, ALFA welcomes the opportunity to work with the Albanese Government on the development of its Feeding Australia national food security strategy—an important election commitment. The lotfeeding sector is critical to ensuring consistent production of high-quality beef, regardless of seasonal conditions,” the statement said.

Meat & Livestock Australia’s senior market information analyst Erin Lukey said Australia’s competitiveness in global markets was being supported by exchange rate dynamics and strong supply chain adaptability.

“With US beef production entering a rebuild phase, Australia has increased export volumes to high value grainfed markets. This has reshaped feeding programs across Queensland and New South Wales to meet export expectations,” she said.

Grainfed beef exports in the March quarter reached 90,329t, 8pc higher than the same period last year, she said.

“The rise of China’s middle class has driven demand for high-quality grainfed beef. The Korean market also lifted 17pc year-on-year, while volumes to Japan softened as domestic cold storage levels rose.”

Feeder steer supply increased slightly last quarter, with 625,000 head processed through the MLA National Livestock Reporting Service’s Feeder Steer Indicator category.

Despite the higher supply, prices rose 9pc to average 362¢/kg liveweight, while Darling Downs wheat prices eased 10pc to $341/tonne, keeping feedlot margins steady, Ms Lukey said.