Name: Australia expands grain-fed beef exports as U.S. production falters
Uploaded: 2025-12-01T08:53:12.236Z
Duration: 2 min 35 s
Description: The rise of feedlots is helping Australia supply beef more consistently for export and take market share from U.S. exporters in Asian countries that prefer grain-fed meat. The growth coincides with a contraction in the United States where years of drought have reduced cattle numbers to their lowest level since the 1950s.

The rise of feedlots is helping Australia supply beef more consistently for export and take market share from U.S. exporters in Asian countries that prefer grain-fed meat. The growth coincides with a contraction in the United States where years of drought have reduced cattle numbers to their lowest level since the 1950s.

Gundamaian

Australia has significantly increased its grain-fed beef exports, with feedlots playing a central role in meeting international demand, particularly from Asian markets. The country exported $8.6 billion worth of beef in the first nine months of the year, and industry data shows a record 1.6 million cattle in feedlots, a number projected to reach 2 million by 2027.

This expansion comes as U.S. beef production declines due to drought, leading to reduced cattle herds and increased imports. As a result, Australia has become more competitive in key export markets such as Japan, South Korea, and China, although experts note Australia is unlikely to adopt the U.S. model of finishing over 90% of cattle in feedlots.

Australia expands grain-fed beef exports as U.S. production falters

Four hours drive west of Sydney, under the blazing Australian sun, 6,000 black Angus cows are fattening up on a diet of rolled barley, silage, cotton seed and molasses. After about 90 days at Gundermane feedlot, these cattle gain up to 50% more weight. That's all so Australia can keep sending out the juicy, marbled beef craved by people worldwide. Gundermane is part of a big change happening in Australia's cattle industry, with the country now the world's second biggest beef exporter. Over the first nine months of this year, Australia shipped $8.6 billion worth of beef overseas. Helping drive the rising tide of exports are feedlots, facilities where cattle are brought together to be fed a high-calorie diet in the months before slaughter. They're aiding Australia in winning customers in Asia, who especially prefer grain-fed meat. Many of those buyers used to purchase mostly from the United States. Now, the Gundermane feedlot has big plans, according to owner Andrew Herbert. We're sort of just a mum. We're expanding. We're hoping to expand to probably double the number to 12,000. But the main reasons we're doing that is that we're probably looking at a better comfort level for our cattle later days. Industry data show there are a record 1.6 million cattle in feedlots across Australia, up from 1 million five years ago. By 2027, analysts say the number will probably hit 2 million. The growth comes as the U.S. declines. Drought has reduced cattle herds there to their lowest level since the 1950s, and beef production is expected to fall this year and next. Analyst Matt Dalgleish explains how the tables have turned for Australia. In the U.S., unlike Australia, because we just export beef, we don't really import a lot of products, the U.S. actually import and export beef. So they're in a position now where they're importing more beef because they haven't got as much domestic production. So that means they're taking more from Australia, for argument's sake. But also, they're not as competitive into the markets where we compete with them, like Japan, South Korea, China. There are other key markets in Australia, and the U.S. are just not as competitive because their product is so much more expensive because of this mismatch of supply and demand they have. Feedlots also protect Australian farmers from swings between droughts and good rain, with the country always producing far more grain than needed for cattle feed. However, experts say Australia likely won't mirror the U.S., where over 90 percent of cattle end their days on feedlots.

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