B.FLT.2000 - Regional Feedlot Investment Study 2025

Summary

The economic contribution and broader value of Australia’s feedlot industry had not clearly been quantified for stakeholders, limiting understanding of its role in the beef supply chain and regional economies. MLA commissioned Deloitte Access Economics to undertake updated economic contribution and impact modelling, using industry data, surveys and computable general equilibrium modelling to quantify feedlots’ direct, indirect and economy-wide impacts. The study confirmed feedlots are a critical driver of economic activity, contributing $4.6 billion and ~24,000 jobs annually, and that new investment delivers significant regional growth, while removal would substantially reduce GDP and employment.

Objectives

The objective of this project was to quantify and communicate the economic contribution and broader value of Australia’s feedlot industry to inform stakeholders including government, investors and industry participants. 
To achieve this, MLA commissioned updated economic contribution and impact modelling using industry surveys, input–output analysis and computable general equilibrium modelling to capture direct, indirect and economy-wide effects of feedlot activity and investment scenarios

The study also aimed to assess the regional impacts of feedlot capacity and illustrate the economic consequences of both industry expansion and removal scenarios.

Key findings

- The feedlot industry contributes significantly to Australia’s economy, generating $4.6 billion in value-added in 2023–24 and supporting approximately 24,000 full-time equivalent jobs across direct and indirect activities.

- Feedlots play a critical role in the beef supply chain by improving productivity, enabling consistent, high-quality supply, and supporting downstream industries such as meat processing, transport and services.

- Economic modelling showed that constructing and operating a new 15,000 SCU feedlot could increase regional GDP by $409 million and support an average of 283 jobs annually over a 10-year period.

- Conversely, removing feedlots from the supply chain would reduce national economic activity by around $59 billion and result in the loss of approximately 28,000 jobs, highlighting the industry’s critical economic importance.

Benefits to industry

This project has strengthened industry understanding of the feedlot sector’s critical role in driving productivity, supply consistency and economic activity across the beef supply chain.

By quantifying its contribution and modelling investment scenarios, the study provides evidence to support informed decision-making, encourage regional investment, and reinforce the importance of feedlots to Australia’s economic resilience and growth.

MLA action

- MLA is using the results to inform stakeholder engagement and investment discussions by clearly demonstrating the economic value and regional benefits of feedlot development.

- The findings are being applied to support evidence-based decision-making for future RD&A investments and to prioritise initiatives that strengthen productivity and supply chain resilience.

- MLA is leveraging the analysis to develop communication and adoption materials that highlight the role of feedlots in underpinning economic activity, helping build confidence among industry, government and investors.

Future research

- Further research could refine regional and supply chain modelling by incorporating more granular data on feedlot input sourcing, trade flows and inter-industry linkages to improve accuracy of economic impact estimates.

- Ongoing investment in dynamic modelling approaches is recommended to better capture long-term impacts of industry changes, including productivity shifts, resource constraints and market responses across the beef supply chain.

- Additional analysis of emerging market demand, production systems and feedlot efficiencies would support future investment decisions and strengthen the industry’s ability to adapt to changing domestic and global conditions.