Australian feedlots hit record capacity as prices climb

Australia’s feedlot sector sustained its momentum through Q3 2025, with national capacity reaching record levels and quarterly turnoff nearing one million head. Despite a slight drop in cattle on feed, utilization remains high, reinforcing the feedlot’s central role in national beef production.

According to Meat & Livestock Australia (MLA), feedlot capacity rose by 3% over the quarter to a record 1.75 million head. Turnoff reached 962,436 head—up 8% compared to the previous quarter and 12% higher year-on-year. Although cattle on feed eased to 1.52 million (-4%), utilization remained strong at 87%, well above long-term averages.

At the same time, cattle prices continued to rise. The national feeder heifer indicator averaged A$ 407¢/kg liveweight (+21%), while the feeder steer indicator rose 18% to A$ 454¢/kg liveweight. These are the highest levels since 2022. However, rising cattle prices are squeezing feedlot margins, despite a 4% drop in grain costs.