AUSTRALIAN cattle on feed and feeding capacity numbers continued to surge to new record highs in the March quarter feedlot industry survey released this afternoon.

Numbers on feed hit a new record of 1.629 million, up another 15,000 head or 1pc from the previous record set in December, and 130,000 more than March last year.

Feedlot capacity also surged to new highs, reaching 1.778 million, up another 122,000 year-on-year. Beef Central is aware of at least another three feedlot expansion or construction projects in train, suggesting the current growth cycle is not yet over. More details to come in coming weeks.

Feedlot utilisation (the number of cattle on feed relative to available pen space) continues at near-record levels, reaching close to 92pc last quarter, the same as December. Historically, feedlot utilisation figures above 90pc are hard to achieve, because of maintenance, pen cleaning and other factors.

Queensland (94.2pc) and New South Wales (92.4pc) led utilisation rates last quarter, while Victoria (83pc), South Australia (88pc) and Western Australia (70pc) recorded slightly lower levels.

Biggest growth in numbers on feed was seen in Queensland last quarter, rising 12,000 head since December to +931,000 head, or more than 57pc of the national total. South Australia and Western Australia both showed seasonal growth, rising 6000 and 8000 head respectively, to 66,000 and 63,500 head. New South Wales numbers on feed showed a small 12,000 head decline to 501,000 head, while Victoria was little changed on 67,400.

Growth in numbers on feed last quarter was strongly skewed towards smaller-scale feedlots, with yards 500-1000 head up 39pc to 64,160 head, and yards less than 500 head up 30pc to almost 10,000 head. Yards 1000-10,000 went against the trend, feeding 22,000 head less last quarter at 426,000, while the big operators feeding +10,000 head lifted a modest 15,000 head to 1.129 million.

Having said that, close to 70pc of all cattle on feed in NFAS-accredited feedlots are housed in yards 10,000 head or larger.

In terms of cattle feeding programs, growth was seen (as a percentage of overall numbers on feed) in longed Wagyu +300 days, with small declines evident in cattle fed 60-99 days and 100-199 days. Feeding programs 200-299 days expanded a little.

Record high grainfed cattle turnoff

Not surprisingly, given the above performance, new quarterly records were also set for grainfed cattle turn-off, surpassing one million head for the first time. Turn-off in the March quarter rose 11pc to 1.046 million head, following two consecutive quarters above 900,000 head.

In commentary attached this morning’s march quarter data release, Australian Lot Feeders Association president Grant Garey said the latest results reflect continued confidence and investment across the feedlot sector.

“The first quarter of 2026 reflected the momentum carried through much of 2025,” he said.

“We continue to see sustained investment in capacity, infrastructure and operational efficiency and these latest numbers-on-feed, high utilisation rates and record turn-off demonstrate an industry going from strength to strength,” Mr Garey said.

“However, in recent months, global uncertainty has increased following the introduction of China’s market access quota, ongoing instability in the Middle East, and pressure in fuel and fertiliser markets. Domestically, drought conditions in several regions have impacted cattle and grain markets, while cost-of-living pressures continue to influence consumers.”

“We are yet to see how these factors will fully impact feedlot production later this year, however confidence remains strong, global demand buoyant and the underlying fundamentals sound,” Mr Garey said.

MLA senior market information analyst Emiliano Diaz said the latest survey results demonstrated a sector that is on a sustained growth trajectory.

“Following long-term investment in feedlot capacity, it was only a matter of time before the industry reached one million head turn-off in a quarter,” Mr Diaz said.

“Maintaining utilisation above 90pc while capacity continues to grow highlights the strength of demand for grained beef,” Mr Diaz said.