Reflecting marginally improved trading conditions on the domestic market, the number of cattle on feed in the March quarter increased 3pc on the December quarter 2007, to 604,026 head.
According to the Australian Lot Feeders Association and Meat and Livestock Australia survey, the increase in the number of cattle on feed was driven by a 15pc jump in cattle destined for the domestic market, to 184,367 head, with little change in cattle on feed for export
markets.
MLA reports that the quarterly increase was largely a result of the need in WA to finish cattle in feedlots due to normal dry summer conditions, with numbers more than doubling from the previous survey, to 57,278 head.
NSW also recorded an increase for the quarter, up 5pc on the December quarter, to 206,900 head.
However, numbers on feed in both WA and NSW were still down significantly year-on-year, back 17pc and 30pc, respectively.
A 23pc reduction in sorghum prices, along with a 17pc reduction in barley prices during the quarter, helped offset the increase in feeder cattle prices and resilient Aussie dollar.
Cattle on feed destined for export markets totalled 416,860 head during the March quarter, back marginally on the previous quarter (417,650), but still 28pc below March 2007 (578,529 head).
Trading conditions in both Japan and Korea continue to be constrained by increased competition from the US and higher prices for Australian beef – primarily due to increased production and grain costs.
SOURCE: MLA