Australian feedlots step up to meet demand and dry conditions
- niamh552
- 14 hours ago
- 2 min read
Feedlot utilisation hit 90% in March, despite easing capacity growth.
Lot feeding supports national food security and rising export demand.
Grainfed exports up 8% YoY, with margins steady on lower input costs.
While capacity growth in the Australian lot feeding sector eased for the first time in four quarters, strong demand for grain feeding to finish cattle has kept pens operating at near-maximum capacity.
The latest Feedlot Survey from the Australian Lot Feeders’ Association (ALFA) and Meat & Livestock Australia (MLA) reports 1.5 million head of cattle on feed during the March 2025 quarter. Despite easing expansion, feedlot utilisation lifted to 90% on the back of a strong turnoff of 859,000 head being replaced at pace.
ALFA President, Grant Garey, said the past 12 months have highlighted the versatility of the Australian lot feeding sector and its vital role in supporting national food security.
"Australian feedlots continue to lift productivity, delivering high-value grainfed beef to meet strong global demand. At the same time, they’re proving essential in finishing cattle during dry and drought-affected periods, reinforcing their importance in a resilient supply chain.”
Dry conditions across southern Australia have increased reliance on lot feeding as pasture availability tightens. South Australia’s reduced feeding capacity has seen a shift in cattle flows, with Victorian feedlot utilisation rising to 93%, its highest since the 2019 drought.
“Southern feedlots have adapted their finishing programs, enabling fast turnover of cattle; in the north, growing international demand for grainfed beef is driving system-wide productivity gains.”
Drought is an inevitable feature of Australia’s climate. As the national peak body for grainfed beef, ALFA welcomes the opportunity to work with the Albanese Government on the development of its Feeding Australia national food security strategy—an important election commitment. The lot feeding sector is critical to ensuring consistent production of high-quality beef, regardless of seasonal conditions.
Erin Lukey, MLA’s Senior Market Information Analyst, said Australia’s competitiveness in global markets was being supported by exchange rate dynamics and strong supply chain adaptability.
“With US beef production entering a rebuild phase, Australia has increased export volumes to high value grainfed markets. This has reshaped feeding programs across Queensland and New South Wales to meet export expectations.”
“Grainfed beef exports in the March quarter reached 90,329 tonnes, down 9% on the December quarter but 8% higher than the same period last year,”
“The rise of China’s middle class has driven demand for high-quality grainfed beef. The Korean market also lifted 17% year-on-year, while volumes to Japan softened as domestic cold storage levels rose.”
“Feeder steer supply increased slightly, with 625,000 head processed through the MLA National Livestock Reporting Service’s Feeder Steer Indicator. Despite the higher supply, prices rose 9% to 362¢/kg liveweight, while Darling Downs wheat prices eased 10% to $341/tonne, keeping feedlot margins steady.”
ENDS.
Media Enquiries:
Jack Johnston
MLA Corporate Affairs and Media Manager
0407 282 971
Grant Garey
ALFA President info@feedlots.com.au
(02) 9290 3700
