Australian Lot Feeders’ Association (ALFA), Media Release, 21 August 2025

Australia’s grain fed beef sector continues its strong growth trajectory, with the number of cattle on feed reaching 1.58 million head and national feedlot capacity reaching a record 1.7 million head, according to the June 2025 quarterly feedlot survey released by the Australian Lot Feeders’ Association (ALFA) and Meat & Livestock Australia (MLA).

ALFA President, Grant Garey said that industry has continued to invest in long term growth of the Australian grainfed sector.

“This marks the fifth consecutive quarter of growth for Australian feedlots. The sector’s role in delivering consistent, high-quality beef to both domestic and international markets has never been more important,” Mr Garey said.

Feedlots continue to be utilised as part of long-standing programs supplying consistent beef to a range of markets. Additionally, the use of feedlots as a finishing and quality tool, alongside the systems adoption for drought mitigation has caused a subsequent lift in utilisation, with national pens 93 per cent full, another record.

Grainfed cattle turnoff also hit a new high, with 894,178 head processed which drove record production and export volumes. More cattle are being placed into longer-fed programs, contributing to a significant lift in quarterly grainfed beef output.

National comparisons over 5-years show the change in the feedlot system. Numbers on feed have lifted 38 per cent, capacity has lifted 23 per cent and turnoff is up 13 per cent, while grainfed exports are up 42 per cent.

“The continued expansion in capacity and utilisation reflects strong confidence in the sector. As we break new records, Australian grainfed beef continues to find demand in global markets,” Mr Garey said.

MLA Acting Market Information Manager Erin Lukey noted that while input costs have risen, global demand remains robust.

Australia exported 112,935 tonnes of grain fed beef, up 25 per cent on June 2024 volumes, which at the time was a record. Grainfed beef made up 29 per cent of total exports as non-grainfed production remains firm.

“Australia consumes a relatively stable volume of grainfed beef, meaning that record turnoff and production, results in a subsequent record export volume. Global demand for grainfed beef remains solid as competition from the US continues to face reduced production.

“Australia exported grainfed beef to 51 countries over the quarter, the most diverse mix of markets since 2017.

China’s share of Australian exports continues to grow, now accounting for 35 per cent of total exports. Japan and South Korea remain key trading partners, contributing 26 per cent and 18 per cent respectively.

Recognising the increasing importance of the feedlot sector, MLA introduced the National Feeder Heifer Indicator (NFHI), addressing a significant visibility gap in the market. This new metric tracks saleyard throughput of feeder heifers—a major component of feedlot purchases.

In the last quarter, lot feeders faced a rising market, with competition intensifying. Saleyard throughput for feeder steers and heifers declined by 6 per cent and 11 per cent respectively, reducing the availability of stock. As a result, prices rose by 6–7 per cent over the same period.

“As southern production systems rebuild, competition is expected to intensify, particularly from restocker buyers,” said Ms Lukey.