AUSTRALIA-DEMAND FOR GRAIN FED BEEF.
Australia’s beef cattle feedlot industry is now well established as an important value-adding component of the Australian beef industry.
The growth in this industry has been stimulated by the increasing demand in our major export and domestic markets for consistent quality in our beef products. The industry has particularly grown in recent years in response to the increased demand for Australian grain fed product in Japan and Korea .
On the Riverina domestic market, end-user requirements are stable; prices remain around $215 delivered at time of writing. Last year’s high grain prices, stronger dollar and restricted cattle numbers due to drought have resulted in a fall in the number of cattle on feed, with only half Australia’s feedlot capacity now being used.
Numbers into Jindalee however have remained stable at around 15,000 head and consuming around 9.5kg of raw product daily. The grain used, is mixed with cotton seed hulls, and stem extruded. Digestibility is increased markedly by this process.
At the moment the current spread between wheat (ASW) and barley (F1) prices mean it still makes financial sense for lot feeders to keep using feed barley. The spread between wheat and barley will have to narrow to $30 to $40 to put wheat back into relation based on the type of milling process they use – this is closely monitored due to plants being price takers on cattle entry and exit and compete heavily with the grass fed market.
As we saw last year there is a direct correlation between high grain prices and the increase of grass fed beef in retail channels.
Cattle graded Y or YG are fed a ration to convert from a grass feed diet to grain. Processing (rolling, milling or crushing) will improve the digestibility of all grains by cattle. However, processing does make grain a little more likely to cause acidosis. Coarse-rolling the grain using a roller mill is far preferable to fine-milling with a hammermill. Cattle are lot fed for up to 120 days and exit the lot around 600kgs.
F1 barley delivered to feedlots for May 2009 is at a distinct $40 advantage over the listed Port Kembla bid. If growers would like a clearer picture so they can deliver into the feedlot or look to sort which grains they are going to store over the winter months, as cattle prices continue to fall the season has forced many vendors to the market earlier than normal, spelling opportunity for those in feedlots and with ample feed on farm.
To make contracting a smooth transition here at AGA we provide vendor declaration forms that must be completed and returned to AGA prior to delivery of grain. Every feedlot in Australia requires its suppliers of commodities to use these forms.
To ensure all strict withholding periods are met – the vendor declaration form is a part of the red meat, grain, and fodder industry’s commitment to deliver safe and hygienic products and commodities to the market.
The feedlot also works off a buyers call, which translates into the feedlot informing the grower of the given date the grain is required into storage of the premises. Growers requiring some indication of delivery date can call AGA for an indicative date.