Australia

Australia: New lot feeding brief shows record capacity

On Tuesday, the Australian Lot Feeders Association (ALFA) and MLA released the September lot feeding brief, which monitors trends and provides an overview in the lotfeeding sector.

Posted on Nov 22 ,00:10

Australia: New lot feeding brief shows record capacity

Survey results show continued growth in the industry. Capacity figures in each state were relatively steady, with small increases in major lot feeding states which boosted national capacity by 21,231, to the highest number on record at 1,576,858.

Numbers on feed continued to trend upward by 1,545 to 1,258,377 head, with utilisation rates remaining stable at 80%, just above the 5-year utilisation average (79%). This slight increase to numbers on feed made the September quarter the second highest cattle on feed volume on record, only behind Q1 2022.

Despite upshifts in capacity and number on feed, quarterly turn-off fell by 10%, to 618,017 head in the September quarter, the lowest quarterly turn-off figure since Q4 2013. This indicates a shift to cattle spending a longer time on feed.

Feeder steer price and supply has assisted the record quarter for lot feeders. In September there was a 46¢ drop on the NLRS feeder steer indicator quarter on quarter, a 42% decline year on year. Year on year yardings were up 23% to 80,397 head in the quarter, and weights have remained relatively stable at 408kg/head, 8kg lower than the June quarter.

Contrasting eased stock prices, wheat prices experienced their third consecutive price increase, growing by 8% to $439/tonne. This was a $49/tonne increase to year-ago prices. These trends continue to put pressure on overall ration costs, dampening the impact of reduced feeder prices for lot feeders.

Grainfed beef exports have been well placed in the national export of red meat, increasing by 10% to 85,050 tonnes, making the 2023 September quarter the largest quarter on record. This record was well supported by rising export volumes to the country’s three top markets – Japan, South Korea and China.

After a slight easing in the second quarter, Japan and South Korea markets recovered, increasing by 3% and 10% respectively. Exports to China maintained growth for the third quarter in a row to 22,998 tonnes. The second largest volume of grainfed exports to China, below the record imports of 2019 driven by African Swine Fever (ASF), caused a protein shortage in the country.

 NEWSLETTER - Stay informed with the latest news!

Comments





Similar articles

MEXIC

Mexico has the productive potential to expand the supply of meat to Japan

The Ministry of Agriculture and Rural Development, representatives of the national meat industry,...


Read more Read more
TURKEY

Turkey announces new 2024-2028 Livestock Roadmap

Turkiye's Minister of Agriculture and Forestry, Ibrahim Yumakli, announced the "2024-2028 Livesto...


Read more Read more
SPAIN

Cajamar and INTERPORC presented a new book about the challenges of the Spanish pig sector

This new book contains an exhaustive and updated analysis of a modern and responsible livestock f...


Read more Read more
Websolutions by Angular Software and SpiderClass