Feedlot capacity and numbers on feed hit new highs

Australia's grain fed beef sector continued to break records in the December quarter - with capacity, utilisation and numbers on feed exceeding previous peaks.

According to the latest survey released by the Australian Lot Feeders’ Association (ALFA) and Meat & Livestock Australia (MLA) in the December 2025 quarter, for the first time, numbers on feed exceeded 1.6 million head, rising 6.4% on the September quarter and 11.3% above year‑ago levels.

National feedlot capacity also climbed to a new high of 1,762,305 head, reflecting ongoing investment in infrastructure and long‑term confidence across the supply chain.

Utilisation rose to 92%, signalling that the additional capacity built in recent years is being actively used and absorbed by strong domestic and global demand for grain fed cattle and beef. Growth was strongest in New South Wales and Queensland, where utilisation reached 96% and 94% respectively.

ALFA President Grant Garey said the results reflected the strength, resilience and forward momentum of Australia’s grain fed beef sector.

"Over the past year, lot feeders have continued to invest with confidence, expanding capacity, improving infrastructure and embracing new production efficiencies,” Mr Garey said.

“What we’re now seeing is that this investment is paying dividends not just for feedlot operators, but for the broader beef supply chain and our international customers.

"Record numbers on feed, high utilisation and sustained turnoff reflect an industry responding to global demand and delivering reliable, high‑quality grain fed beef."

Quarterly grain fed turnoff totalled 947,200 head, easing slightly (‑1.6%) compared to September, driven by declines in NSW and WA. However, Queensland (+4%), Victoria (+28%) and South Australia (+5%) all recorded increases, keeping total turnoff well above the 900,000‑head threshold.

MLA Senior Market Information Analyst Emiliano Diaz said the sustained high level of turnoff highlights the impact of long‑term capacity growth. “This is only the second time grain fed turnoff has exceeded 900,000 head. This demonstrates the long‑term investments in capacity are now translating into increased production volumes,” Mr Diaz said.

“The high national utilisation rate shows new pens being built are being filled, reinforcing that demand for grain fed animals and beef remains extremely strong.

“With both numbers on feed and utilisation at record highs, the December quarter results point to continued expansion potential, particularly in NSW and Queensland where feedlots are approaching maximum capacity use.”

The Bottom Line

•  Numbers of cattle on feed in Australia reached above 1.6 million head for the first time.

• Feedlot utilisation rates reach 92%.

• Feedlot quarterly turnoff remains above 900,000.