News last update:6 Aug 2012

Aussie feedlot herd is getting smaller

Only half of the feedlot capacity in Australia is being utilised due to a combination of high grain prices, the strong dollar and warm weather conditions in Japan, The Australian reports.

According to Meat and Livestock Australia, in the December quarter alone the number of cattle in feedlots fell by 14% while the last year has seen a reduction of 36%.

Feed prices have gone from around $150 per tonne in 2005 to $350 per tonne for most grains now so lot feeding is not profitable. Also, the US has resumed limited exports to Japan where consumption has fallen as beef is mostly considered cool weather fare.

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