B.FLT.0472 - Regional Investment Study Update

Summary

​The cattle lot feeding industry is a crucial component of Australia's beef supply chain. This report estimates the economic contribution and economic impact of the feedlot sector to the Australian economy. The total (direct and indirect) economic contribution of the national feedlot industry to gross domestic product (GDP) in 2012-13 was $2.5 billion, and approximately 28,600 full time equivalent jobs. The contribution to local, regional, state and the national economy are estimated. The economic impact of the industry is estimated using computable general equilibrium (CGE) modelling. Two scenarios are modelled; the first considers the size of the economy in the absence of feedlots. The second scenario is built on top of the first scenario, and also accounts for the productivity loss in the grazing sector, resulting from the absence of feedlots. Under the first scenario, gross domestic product (GDP) is $2.6 billion lower in the absence of feedlots than under a baseline scenario of no change in 2030. When productivity losses to the grazing sector are also accounted for, GDP is expected to be $3.0 billion below baseline in 2030.