THE grainfed beef industry has surged to another record quarter, with numbers on feed in the latest (September) quarterly industry survey showing the population at 1.424 million head – up another 6200 on the previous record set in June.

Feeding capacity also continues to grow, reaching a record 1.643 million head in the September quarter – almost 67,000 above this time last year.

Feedlot utilisation (occupancy) remains close to record highs at 86.7pc. With pen cleaning, maintenance and other requirements, a figure approaching 90pc utilisation is widely considered to represent full to commercial capacity.

Numbers on feed grew in most states last quarter, with the exception of Queensland and Victoria, where numbers fell a little.

Queensland feedlots at September 30 were carrying just over 829,000 head, down about 24,000 on the record set three months earlier.

In NSW, lotfeeders added another 12,000 head since June, reaching a record 397,000 head, while Victoria saw numbers ease slightly to 59,700 last quarter. Normal seasonal cycles were observed in South Australia and Western Australia, which rose by 3000 head to 46,700, and 12,000 to a record 45,654 head respectively.

In an unusual result, feedlot capacity actually declined last quarter in Queensland, falling about 12,000 head to 918,000 head from the record high seen back in June. This time last year, the largest lotfeeding state’s feeding capacity was 40,000 head less than what it is today.

Freshly-minted ALFA president Grant Garey said that despite some increases in feed and feeder steer prices, increased supply of feeders had encouraged ‘business as usual’ for lotfeeders, taking advantage of relatively stable margins.

“The Australian feedlot sector has grown 24 percent in just the past five years,” Mr Garey said.

Grant Garey

“While nationally, the numbers on feed lifted just 6200, and capacity is up less than 6000 head, it is comforting to see the sector can maintain size after over two years of impressive growth.”

Small increases in capacity and numbers have shown a maintenance in the sector over the past six months. State records were seen in NSW and SA, while Queensland and Victoria dipped in numbers on feed, Mr Garey said.

Grainfed cattle turnoff figures for the quarter were lifted 17pc from the previous quarter and 39pc from the corresponding quarter in 2023, with 859,930 head, the second largest turnoff volume of record.

“The recent period of high numbers on feed has now flowed through the system as cattle finish programs,” Mr Garey said. “Encouragingly, with numbers remaining solid, this high turnoff is not indicating any move to reduce the capacity and intensity of current programs.”

Australian beef exports lifted 12pc in the September quarter compared with June, to a record 365,842t. Grainfed beef made up 28pc of this total volume, reaching its individual volume record lifting to almost 101,000t.

Meat & Livestock Australia senior market information analyst Erin Lukey pointed to feedlot productivity behind the record total beef export figures in the Septemebr quarter.

“High turnoff related to number of head, partnered with heavier carcases from longer feeding programs exiting the system, which has contributed to Australian record beef export figures seen this year,” she said.

“Individually, our top three markets have remained solid. Japan remained our largest grainfed market, despite a 9pc reduction in volume last quarter, making up 32pc of all Australian grainfed exports. China made up 25pc of export share, while Korea made up 21pc of exports,” Ms Lukey said.

“Multiple years of drought conditions in the US had led to a US focus on domestic consumption, increasing the market share of high-value Australian beef in the shared markets of Japan and Korea.”

Additionally, grainfed exports to the US have lifted 59pc into a traditionally grassfed lean market.

Feeder cattle supply through saleyards remains solid to support recent export and production volumes. Saleyard throughput lifted 7pc over the September quarter, making Q3 as the largest saleyard throughput period for feeder steers since 2015.

Queensland and NSW drove this lift, up 15pc and 6pc respectively. Declines of 32pc and 27pc in SA and Victoria were expected due to tough conditions experienced across the states, Ms Lukey said.

The average feeder steer prices and Darling Downs wheat prices lifted across the third quarter. National feeder steer prices came in at 357¢/kg up 10pc on the previous quarter, and wheat prices up a similar 7pc to $393/t.

“Livestock and feed are the two main inputs for feedlots. Both major inputs being up this quarter have placed additional pressure on feedlot margins. However, looking at monthly prices, a reduction in both over September is a positive move,” Ms Lukey said.