Australia expands grain-fed beef exports amid US production decline

Australian farmers are increasing production of grain-fed beef to meet rising demand in Asian markets. At the Gundamain feedlot in New South Wales, six thousand Black Angus cattle are being fed a mix of barley, silage, cottonseed, and molasses. Over 90 days in the feedlot, their weight can increase by 50% to around 600 kg, ensuring a steady supply of high-quality beef for export.

Feedlots help Australia consistently supply beef abroad and gain market share in regions traditionally dominated by the US. In the first nine months of 2025, the country exported $8.6 billion worth of beef, half of which came from grain-fed cattle. Key markets include Japan, South Korea, and China, where consumers favor marbled, juicy beef.

The number of cattle in Australian feedlots reached a record 1.6 million by the end of June, up from 1 million five years ago. By 2027, about half of all slaughter-bound cattle in Australia are expected to pass through feedlots. This expansion helps mitigate the effects of drought and ensures stable production regardless of weather fluctuations.

Reduced US beef production, driven by years of drought that have lowered cattle numbers to their lowest since the 1950s, is boosting demand for Australian beef. Experts note that Australian feedlots produce high-quality meat similar to American grain-fed beef, providing reliable supply to international markets.

While the share of grain-fed cattle is increasing, Australia is unlikely to reach US levels, where over 90% of cattle are finished in feedlots. High construction costs for feedlots and the anticipated recovery of US beef production limit rapid expansion, while demand for grass-fed beef—seen as more sustainable and less industrialized—is also growing.

Tags: Australia, Beef cattle