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Cattle on feed at lowest level since 2017
13 August 2020
Key points:
- Queensland cattle on feed increase with declines seen across all other states
- National feedlot capacity continues to climb despite reduced numbers on feed
- Record grainfed turnoff for fiscal year in South Australia and Western Australia
The results from the June quarter ALFA/MLA feedlot survey reported a 7% decline in cattle on feed from the March quarter to 1,010,192 head, the lowest level since December 2017. Despite sustained demand for high-quality grainfed product in overseas and domestic markets, the impact of improved seasonal conditions and subsequent restocker demand has pressured the lot feeding sector.
The absence of any good rainfall in Queensland since April saw pastures begin to dry out, resulting in a continued supply of feeder cattle entering the market, sustaining numbers on feed across the state. As a result, Queensland was the only state to report increased numbers on feed, up 1% for the quarter to 611,683 head. All other states recorded significant declines from the previous quarter, as favourable seasonal conditions increased restocker activity and developing uncertainty across the foodservice sector pressured feedlot placements.
While most states reported increased grainfed turnoff for the 2019-20 fiscal year, reduced turnoff in Queensland resulted in national grainfed turnoff easing 3% from record levels seen in 2018-19, to 3,044,134 head in 2019-20. Declining 8% from the record level of turnoff in 2018-19, Queensland grainfed turnoff totalled 1,758,572 head. Grainfed turnoff in South Australia and Western Australia posted records in 2019-20, totalling 121,512 and 154,224 head, respectively. While not a record, grainfed turnoff in Victoria increased 7% year-on-year to 215,592 head in 2019-20, and New South Wales remained stable with year-ago levels at 794,237 head.
For the 2019-20 fiscal year, grainfed turnoff accounted for 37% of total adult cattle slaughter, 1% below year-ago levels. The portion of grainfed turnoff of total adult slaughter peaked at 45% during the March quarter, before easing to 37% in the June 2020 quarter.
Despite a decline in the numbers on feed so far in 2020, AUS-MEAT accredited national feedlot capacity continued to increase in the June quarter, reaching a record 1,432,989 head, 3% higher than March and 4% above year-ago levels.
View the latest ALFA/MLA feedlot survey results for the June 2020 quarter here.
© Meat & Livestock Australia Limited, 2020
