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Cattle buy-in pressures and stubbornly low utilisation rates have seen the numbers of cattle on feed remain steady across the March quarter, with analysts saying the theme is likely to continue in the short term.
The latest feedlot survey results, published by the Australian Lot Feeders’ Association and Meat & Livestock Australia, show numbers of cattle on feed rose by 1.1 per cent to 1,158,240 head last quarter.
ALFA president Barb Madden said the national numbers had remained firm quarter-on-quarter.
“We’ve seen improvements in numbers on feed in Victoria, NSW and WA, but a fall in Queensland has meant our overall national numbers remained steady,” Ms Madden said.
Numbers on feed in Victoria, NSW and WA rose by 29pc, 23pc and 10pc respectively, while Queensland numbers dropped 4.6pc - or 31,096 head - across the quarter.
"We’ve seen an adjustment in Queensland numbers on feed, reflective of market conditions and previous cattle buy-in pressures that have impacted margins,” Ms Madden said.
“The good news is our national capacity grew yet again, with a further 22,689 head - or 1.5pc - throughout the March quarter to total 1.56 million head, reflecting further investment and confidence in the role feedlots play in Australia’s beef supply chain."
Above: Numbers on feed year-on-year. Source: ALFA/ MLA, March 2023, National Accredited Feedlot Survey.
MLA senior market information analyst Ripley Atkinson said year-on-year grain-fed export figures for the quarter were in good shape.
“Our quarter-on-quarter exports for March this year have remained steady, but when you look at year-on-year numbers we’re seeing a lift of 6pc or 4,313 tonnes, and that’s encouraging,” Mr Atkinson said.
On the cattle supply side, while feedlot buyers experienced reduced feeder steer availability through the saleyards during the quarter, average weights were at a record high.
“The supply of feeder steers offered for sale via the saleyards declined by 36pc - or 22,718 head - in the March quarter, with major reductions seen in NSW and Queensland,” Mr Atkinson said.
“However, while there was reduced feeder steer availability through the yards, feeder steer weights rose by 2pc to 425kg per head, representing the heaviest average weight of feeder steers sold via the saleyards on record."
Mr Atkinson also said wheat prices for the Darling Downs had strengthened in the March quarter, and the continuation of historically elevated grain prices together with high cattle prices would likely pressure lot feeders’ profitability and margins.
