Australian feedlots facing challenges
AUSTRALIA - The total number of cattle on feed across Australia declined during the first quarter of 2007, as the Australian feedlot industry continued to face a number of ongoing challenges. High grain costs, slowing demand from north Asian markets and a stronger A$ are all contributing to difficult trading conditions, while supplies of suitable cattle could tighten significantly if widespread rain is received.
18 May 2007
1 minute read
Results from the Australian Lot Feeders Association and MLA March 2007 quarterly feedlot survey revealed that cattle on feed fell back 4% on the previous quarter and 2.5% on March 2006, to 873,265 head. Numbers in Queensland were back 7% on the same period last year, to 423,923 head; while in contrast, NSW recorded a 4% increase, to 297,305 head.
Interestingly, the number of cattle on feed in feedlots greater than 10,000 head during March increased by 4% on the previous year, to 503,435 head. In contrast, the poor feeding margins saw numbers in smaller feedlot categories all decline, particularly those between 1,000 and 10,000 head, which fell 10%. The larger operations appear determined to ride out the difficult period, at this stage.
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