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Money

Australia expands grain-fed beef exports as US manufacturing falters

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Last updated: December 2, 2025 6:51 am
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Australia expands grain-fed beef exports as US manufacturing falters
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By Peter Hobson

EUGOWRA, Australia, Dec 1 (Reuters) – Six thousand Black Angus cattle chew on rolled barley, silage, cottonseed and molasses, fattening up in three rows of shaded pens beneath the recent Australian solar.

After a mean of 90 days on the Gundamain feedlot, their weight can improve as a lot as 50% to ​round 600 kg (1,323 lb), all to satisfy rising international demand for juicy grain-fed beef.

Gundamain is a part of a structural change within the cattle business in Australia, whose ‌huge pasturelands and small inhabitants have made it the second-largest beef exporter, delivery meat value $8.6 billion within the first 9 months of this yr, based on customs information.

The rise of feedlots helps Australia provide beef extra constantly for export and take market share ‌from U.S. exporters in Asian nations that choose grain-fed meat.

“We’re consistently being requested for product,” stated Tess Herbert, whose household owns and runs Gundamain, round a four-hour drive west of Sydney.

The feedlot plans to double its capability to 12,000 head within the coming years, she stated. “If our provide chain is asking, we’ll handle that. And the one manner to take action is by increasing.”

RAPID RISE OF GRAIN-FEEDING

The variety of cattle on feed in Australia rose to a file 1.6 million on the finish of June, up from 1 million 5 years in the past, business knowledge present.

Analysts count on the quantity to ⁠be round 2 million by 2027, by which era round half the cattle ‌in Australia will likely be passing by feedlots on their strategy to slaughter, up from round 40% now.

The expansion coincides with a contraction in america, the pioneer of feedlots and largest producer of grain-fed beef, the place years of drought have diminished cattle numbers to their lowest degree because the Nineteen Fifties.

The USA on November ‍1 had 11.7 million cows on feed, 260,000 fewer than a yr earlier and the bottom quantity in years, based on the U.S. Division of Agriculture, which expects U.S. beef manufacturing to say no this yr and subsequent yr.

“An acceleration in demand has pushed the expansion,” stated Grant Garey, president of the Australian Lot Feeders’ Affiliation and supervisor of feedlots for Teys Australia, one of many nation’s greatest beef producers.

“Decreased manufacturing from ​the U.S. is certainly taking part in a task in that,” he stated.

Feedlots have been utilized in america for practically a century to fill out cattle earlier than slaughter. Vitality-dense diets rapidly create ‌bigger, fattier cuts that customers discover tastier and juicier.

Gross sales of Australian meat, seen as an in depth match for U.S. product, are increasing to Asian nations that prize grain-fed beef for its marbling and high quality.

Australian grain-fed exports elevated to 324,421 tons within the first 9 months of this yr from 224,230 tons in the identical interval of 2020, based on authorities knowledge that solely contains beef from cattle fed for 100 days or extra and subsequently excludes some exports.

Most of this meat goes to Japan, South Korea and China. U.S. exports to those nations have declined lately.

SECURITY OF SUPPLY

Feedlots haven’t solely given Australian producers entry to premium meat markets however lessened the influence of the swings between rain and drought which are extreme in Australia.

“It offers you safety over your provide chain,” stated Matt ⁠Dalgleish, a meat and livestock analyst at consultants Episode 3. “To have the ability to ship constant output by the ​yr and never depend on rainfall and grass – that is actually necessary.”

Whereas droughts additionally hit grain manufacturing, Australia harvests a lot ​greater than is required by feedlots.

Simon Quilty, an analyst at World AgriTrends, stated feedlots had been making glorious earnings and would proceed to develop.

“Operators are seeing the alternatives,” he stated. “We’ll go to 1.75 million (cattle on feed) subsequent yr, and the yr after that to 2 million.‍”

The most important feedlot operators in Australia embrace Mort &⁠ Co, JBS, NH Meals and Teys Australia, which is owned by U.S. agribusiness big Cargill.

Australia is nonetheless unlikely to turn out to be like america, the place greater than 90% of cattle are fattened on feed. The excessive value of feedlot building and an anticipated revival in U.S. beef manufacturing in a couple of years are ⁠holding a lid on funding in new websites, stated Garey.

There may be additionally a robust marketplace for grass-fed beef, which some customers see as much less industrialised and extra sustainable.

“We’re getting in the direction of a 50-50 market between grain- and grass-finished,”‌ stated Dalgleish.

“Grain-finished animals are essentially the most profitable. However there is a rising premium marketplace for grass-finished. Australia is in a superb place to fill each markets.‌”

(Reporting by Peter Hobson; Extra reporting by Tom Polansek in Chicago; Enhancing by Sonali Paul)

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