Grass finished holds dominance, only just.

The Detail

The Australian Lot Feeders Association (ALFA) have released their December quarter 2022 feedlot report, so we can get a look at how the season finished for the domestic beef feedlot sector. National cattle on feed numbers lifted 8.4% over the final quarter of 2022 to see 1.14 million head in feedlots. As an annual average 2022 saw 1.17 million head of cattle on feed compared to an annual average of 1.11 million head during 2021, a gain of 5%.

Meanwhile, feedlot capacity gained 1.4% across the nation to 1.53 million head over the December quarter, bringing the utilisation rate up from 70% in Q3 to 75% in Q4. Feedlot capacity averaged 1.5 million head over 2022 compared to an annual average of 1.45 million head in 2021.

The lift in cattle numbers on feed over the December quarter saw cattle volumes push back above the seasonal trend, nearing the levels seen in the 2021 December quarter of 1.16 million head. A higher cattle population in feedlots was underpinned by a sharp decline in feedlot marketings over the final stage of 2022.

Feedlot marketings in the December quarter dropped by over 13%, or around 95,000 head, compared to the previous quarter and finished the season well below the normal range seen in feedlot marketing volumes at 618,511 head.  Compared to the five-year average for December, marketings for the December 2022 quarter were 15% under the normal trend.

As the feedlot and cattle slaughter data for the 2022 season is now complete we can measure the proportion of grass finished to grain finished cattle sent to meat works. The annual average grain finished turnoff ratio came in at 47% for 2022. While this is the highest it has achieved on record grass finished cattle still dominate the production system in the Australian beef sector.

However, with such a strong trend over the past two decades in favour of growing grain finished systems it begs the question when will the feedlot sector hold the dominance over grass finished?