A feedlot heavyweight has outlined plans to build a new facility in central Queensland.
Mort and Co's general manager for livestock and logistics, Brett Campbell, said a site had been earmarked at Gogango for a new feedlot, with the licensing process underway and an announcement expected in the next few months.
The new feedlot is part of the company's continued focus on improvement and diversification in a bid to "spread the risk and increase possibilities within the business", he said.
Mort and Co owns two feedlots - the 70,000 head Grassdale, Dalby, and 10,000 head Pinegrove, Millmerran - and has half a share in the 17,000 head Yarranbrook Feedlot at Inglewood. The company also has five dedicated beef brands, a trucking fleet and 3400 hectares of farmland.
Addressing the Australian Brahman Breeders' Association annual conference, Mr Campbell said the feedlot industry was "a margin business".
"You have things you can control and not control," Mr Campbell said.
"There's no big wins left in the feedlot industry.
"While our costs are increasing our potential to increase our margins is limited."
Mort and Co's future plans include a cottonseed de-oiling factory, value-added fertiliser granules and feedlot expansion.
Mr Campbell said the feedlot industry was experiencing challenges like any other industry, over and above "finding enough cattle or buying cattle at the right price".
He said increased input costs including feed, fuel and fertilisers, repairs and maintenance, biosecurity and a tight labour market, all impacted profitability.
There was some positive signs for the labour market, with the return of some international workers including Philippine trade-qualified workers, and involvement in the Pacific Australia Labour Scheme (PALM), Mr Campbell said.
"We see the grain feed industry still really positive," he said.
"The numbers on feed over the last couple of years have continued to increase and there are a reasonable amount of feedlots that are increasing licenses."
