WA cattle on feed numbers up 46.6 per cent in December quarter: Australian Lot Feeders’ Association survey

The number of cattle in Australian feedlots has remained above one million head for the 20th consecutive quarter, with WA recording the most significant lift in numbers. The Australian Lot Feeders’ Association’s latest quarterly survey, released on Monday, confirmed there were nearly 1.15 million cattle on feed nationwide in the December 2022 quarter. The figure marked an increase of 89,172 or 8.4 per cent on the previous quarter, but was 1.3 per cent below the December 2021 quarter. Numbers were higher in every major cattle-producing State, with WA recording a 46.6 per cent increase, bringing its total to 59,235 head. Victoria recorded 49,404 head, up 9.5 per cent, Queensland recorded 675,872 head, up 7.9 per cent, South Australia recorded 41,812 head, up 7.7 per cent, and NSW recorded 318,905 head, up 4.4 per cent. ALFA president Barb Madden said the results of the survey — carried out in conjunction with Meat and Livestock Australia — demonstrated the strength of the feedlot sector. “Reaching 20 successive quarters above one million head confirms what has now become the new normal level of cattle on feed for the Australian feedlot industry,” she said. “Underscoring this achievement is the incremental growth in national capacity, which hit 1.532 million head to close out 2022, a new record for the industry.” Nationwide, capacity was up up by 79,000 head or 5.4 per cent compared to the December 2021 quarter. On a State-by-State basis, significant capacity growth over 2022 was recorded in Queensland (up 23,000), NSW (up 31,000), SA (up 10,000) and WA (up 11,000). Ms Madden said the uptick in cattle on feed from the previous quarter occurred alongside improvements in cattle and grain input costs, which softened slightly. “However, labour and energy costs remained challenging, and the weakening global economic outlook continues to weigh on lot feeders’ minds,” she said. MLA senior market information analyst Ripley Atkinson said feedlot utilisation rates improved in late 2022, lifting by 5 per cent to 75 per cent through quarter four. “Feedlot utilisation rates are a good indicator of feedlot buyer demand,” he said. “This increase coincided with a decline in the national feeder steer indicator during the latter half of 2022 and softening of grain input costs, which favoured feedlot buyers during the period.”