Market Talk - Beef export markets continuing to expand

The cattle markets around Australia continue to improve almost weekly with a number of similarities to the last time we saw record beef prices.

Interstate markets are dominated by restockers and feeders as both these sectors battle with processors for their share.

With a pretty good season through Queensland and Central and Northern NSW, restockers are out in force with big numbers of store cattle out of Victoria heading north. If the season improves in the Southern states, this competition will get even stronger.

Australia’s feedlot sector has entered the second half of 2025 with record levels across capacity, numbers on feed and utilisation.

National feedlot capacity has now reached 1.7 million head - up 3 per cent for the quarter -while cattle on feed climbed 5 per cent to 1.58 million head.

A relatively stable grain price of around $350/tonne for Darling Downs wheat has meant margins have remained positive and this also encourages cattle to stay on feed for longer periods to add more weight.

Feedlot turn-off followed record trends with 894,000 cattle processed for the quarter.

Grain-fed exports at 113,000 tonnes climbed 25 per cent both from the previous quarter and year.

China remained the largest market in the second quarter, taking 35 per cent as increased demand for high-quality beef continues in that country and there are a lot of mouths to feed, which indicates a promising future.

Japan was second with 26 per cent of exports, although this market stayed below the same quarter last year, as household spending is under pressure.

Australia exported beef to 51 countries over the quarter, which is the largest mix since December 2017, which reinforces our expanding market.

It's interesting to note that over the last five years, cattle on feed have increased by 38 per cent, while grain-fed exports have risen by 42 per cent during the same period.

This in itself indicates that very strong feeder competition in the saleyards will continue well into the future.

Another similarity to the last time we saw record cattle prices is that the end price is quite favourable, which means that finishers have more money to spend in the store cattle markets.

There will be some interesting times ahead.