SALEYARD prices for cattle would be very different this year if it was not for the state’s growing feedlot industry, according to SA Beef Industry Blueprint Working Group chairman Bruce Creek.
Mr Creek said feedlotters were helping to put a solid floor in the market.
“For the first time in a lot of years, steers weighing 350 kilograms are making more money (a kilogram) than 300kg steers, because they’re closer to that feedlot entry weight,” he said.
“If it wasn’t for feedlots, the market would be as flat as a tack, because hardly anyone has got much feed in their paddocks.”
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According to Australian Lot Feeders Association and Meat & Livestock Australia data, an additional 10,617 head of cattle were put on feed in SA in the past year, taking the state total to 31,576.
This is the second-highest increase in the nation, only behind Qld.
This lift in numbers is mostly being driven by large projects, such as Princess Royal’s expansion, Meningie’s Wanderribby Feedlot lifting to 8000 head and the Iranda feedlot at Tintinara almost tripling its capacity in recent years.
Earlier this year, S Kidman & Co launched its 100-day grainfed Santa Gertrudis brand, with the cattle bred on stations in Qld’s Channel Country and finished at the company’s 3000-head Tungali feedlot at Sedan.
The company is seeking approval to increase the feedlot’s capacity to 10,000 head.
Mr Creek said it was not long ago that SA’s feedlot industry was in its infancy.
“If you go back even 10 years, there really weren’t many feedlots around at all,” he said.
“Princess Royal was smaller, the Kidman feedlot was smaller, Wanderibby was a couple of thousand head.
“The industry has definitely grown in leaps and bounds.
“There’s even a feedlot at Tumby Bay with 1500 head in it.
“We do have a lot more cattle on feed than what you realise. There’s a lot of small feedlots – from 500 to 600 – on people’s farms.
“It’s been gradual growth, but there’s been a turning point if you look at the market now.”
Mr Creek said feedlots worked well with the working group’s future aims for SA’s cattle industry.
“The aim of the blueprint firstly is to value-add, and if you’ve got a feedlot business, it means cattle are staying in SA,” he said.
“The chances of having all the cattle slaughtered in SA are quite narrow, due to the Thomas Foods International situation, but once TFI are back on track there’ll be enough capacity to meet supply, and balance out the peaks and troughs.”
Mr Creek said having some feedlots targeting the European Union while others focused on the domestic market was a positive.
“If they all focused on one market, a lot of markets would be left out. This way it balances it all out,” he said.