Australia expands grain-fed beef exports as US production falters

Core Insights - The Australian cattle industry is undergoing a structural change with the rise of feedlots, which is enabling the country to meet increasing global demand for grain-fed beef [2][4] - Australia has become the second-largest beef exporter, with meat exports valued at $8.6 billion in the first nine months of the year [2] - The number of cattle on feed in Australia has reached a record 1.6 million, with expectations to rise to around 2 million by 2027 [3][4] Industry Trends - The growth of feedlots is allowing Australia to supply beef more consistently for export, capturing market share from U.S. exporters in Asian countries that prefer grain-fed meat [2][6] - Currently, about 40% of cattle in Australia are processed through feedlots, with projections indicating this could increase to around 50% by 2027 [4] - The U.S. cattle industry is experiencing a contraction due to drought, leading to a decrease in cattle numbers and a decline in beef production [5][6] Company Developments - Gundamain feedlot plans to double its capacity to 12,000 head in response to rising demand [3] - The feedlot's owner, Tess Herbert, emphasizes the need to expand to meet supply chain demands [3] - The Australian Lot Feeders' Association highlights that increased demand and reduced U.S. production are driving growth in the Australian beef sector [5][6]