ONGOING drought, particularly in Queensland, has continued to keep cattle numbers in Australian feedlots at near record levels.
Figures released this week by the Australian Lot Feeders’ Association (ALFA) showed cattle in feedlots increased by less than one per cent for the September 2015 quarter to 961,328 head.
ALFA chief executive officer Dougal Gordon said Queensland's dry conditions made it difficult for grass fed cattle operators to sustain numbers.
He said the figures were also underpinned by strong demand for Australian beef overseas.
"Small declines were experienced in every feedlot State except Queensland whilst nationwide feedlot capacity utilisation, at 84 per cent, remained extremely high,” Mr Gordon said.
"Strong international demand, as well as some rain across the eastern states, saw feeder cattle prices record robust growth during the quarter.
"Nationally, saleyard feeder steer (330-400kg lwt, C2) prices averaged 312 cents during the quarter, up 61pc year-on-year, while the eastern states domestic paddock feeder steer indicator (280-350kg lwt) averaged 299 cents over the three months, up 52pc year-on-year.
"Darling Downs grain price trends were mixed year-on-year. Barley averaged $301/tonne during the quarter, back 2pc year-on-year, while sorghum and wheat both averaged 3pc above year-ago levels, at $293/tonne and $328/tonne, respectively.
Meat and Livestock Australia’s manager, market information and NLRS, Ben Thomas, said that 2014/15 September quarter shipments of grain fed beef were the highest on record since 2006, with just over 68,000 tonnes swt exported over the three months – up 14pc year-on-year and 22pc above the five year September quarter average.
Japan - down 4pc year-on-year to 33,016 tonnes swt - continued to be the dominant export market for grain fed beef taking 48pc of total shipments during the quarter.
Volume to Korea was the highest on record since 2006 for the September quarter, with 12,730 tonnes swt shipped during the three months, up 31pc year-on-year, while shipments to China more than tripled year-on-year to 6470 tonnes swt.
Exports to the US and Middle East also grew - up 68pc and 26pc above year-ago levels to 4765 tonnes swt and 2601 swt respectively.
Shipments to the EU market remained steady at 4535 tonnes swt.
“It is however expected that cattle numbers on feed will reduce for the December quarter due to high feeder cattle prices and tighter cattle supply brought about by the declining herd and increased backgrounder and re-stocker demand following good November rains," Mr Gordon said.
