Regional and national impact of feedlot investment

Summary

The study estimates the direct, indirect and flow-on effects of a feedlot establishment and operations and was undertaken to provide a snapshot of the contribution of the feedlot industry to local, regional, state and Australian national economies in FY 2002. Feedlots in Queensland and New South Wales were surveyed to provide FY 2002 capacity data as a basis for quantitative models of hypothetical 5,000, 15,000, and 30,000 standard cattle units (SCU) capacity feedlots. Australian feedlots in aggregate were estimated to directly generate approximately 1,570 full-time equivalent jobs (fte), over 80 percent of which were in Queensland and NSW. Household expenditure by these employees and expenditure by feedlots on cattle, feedstuffs and transport services was estimated to generate a further 6,990 fte jobs in other sectors of the national economy from a turnover of $2,966m. Total value added generated by feedlots nationally was estimated to be approximately $806m, $188m in direct value added and $618m in flow-on value added. The major contributors to the total national value added impact were Queensland (44 percent) and NSW (30 percent).