The grain gain

The Detail

Meat & Livestock Australia (MLA) in conjunction with the Australian Lot Feeders Association (ALFA) have released the December quarter feedlot data for the 2021 season. On a quarterly basis we have seen a big lift in the proportion of cattle that are grain finished with the final quarter of the year registering 50.2% of cattle processed as grain finished. This is up from 44.3% in quarter three, and continues to demonstrate the confidence in the beef feedlot sector.

As the 2021 season is now closed we can take a look at the annual figures to see how the entire season has shaped up. On an annual basis the proportion of grainfed finished cattle lifted from 40.2% in 2020 to 46.2% in 2021.

Total Australian cattle on feed lifted by nearly 4% over the final quarter of 2021 to see 1,159,991 head of cattle in feedlots. Volumes in Queensland were largely unchanged over the quarter but NSW saw a significant lift in cattle on feed, up 9% to 330,977 head. South Australia is a bit of a minnow in the feedlot space, with just 4% of the nations cattle on feed in this state, but they saw a strong 21% gain in feedlot numbers to hit 44,096 head. WA, another minnow, also saw strong gains of 39% over the quarter to register 40,193 head as at the end of December 2021. Meanwhile, Victoria posted a 10% decline in cattle on feed numbers to 55,326 head.

National capacity utilisation rates have lifted by 3 percentage points over the December quarter to finish the year at 80%. Queensland and SA have the tightest capacity in the nation at 83%, meanwhile WA and Victorian feedlots are the laggards at 55% and 70% capacity, respectively. NSW is holding the middle ground with feedlot capacity sitting at 78%.