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Feedlot herd shrinking
21 Jan 2008
Only half of the feedlot capacity is being utilised due to a combination of high grain prices, the strong dollar and warm weather conditions in Japan. According to Meat and Livestock Australia, in the December quarter alone the number of cattle in feedlots fell by 14 per cent while the last year has seen a reduction of 36 per cent. Feed prices have gone from around $150 per tonne in 2005 to $350 per tonne for most grains now so lotfeeding is not profitable. Also, the US has resumed limited exports to Japan where consumption has fallen as beef is mostly considered cool weather fare.
The Australian, 21/1/2008
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