Domestic price of feeder cattle

IBISWorld expects the domestic price of feeder cattle to soar by 32.8% during 2024-25 to 388.8 cents per kilogram. Pasture farmers purchase feeder cattle and raise them on feedlots before selling them to downstream meat processors, who then sell the meat to domestic and export markets. Prices are on track to hike following plummeting prices over the two years through the end of 2023-24.

Following periods of drought, which eased in early 2020 and showed significant improvement by 2021, farmers undertook herd rebuilding activities, encouraged by higher rainfall levels that relieved the impact of feed inputs. This change in weather conditions increased competition for feeder cattle, placing upwards pressure on prices over the three years through 2021-22. Yet, late 2023 brought a return of drought conditions, driving the domestic price of feeder cattle downwards. However, with solid rainfall in parts of Queensland and NSW in early 2025, farmers are again restocking their herds, applying upwards pressure on prices.

Fluctuations in cattle turnoff rates, local and international demand for beef, weather conditions and the Australian dollar cause volatility. Turnoff rates are defined as the number of cattle sold to downstream processors or export markets.

Strong demand for Australian beef in export markets has supported both beef and feeder cattle prices over the past five years. Growth in exports was robust in China, followed by South Korea and Indonesia, as these countries hold Australian beef in high regard because of the disease-free status of Australian cattle herds. The broad sweeping tariffs instigated by the US naturally caused concern for Australian beef farmers who saw the competitiveness of their products in the world's biggest economy slump after the 2nd of April. However, as Beijing hiked its duties on beef from the US in retaliation for previous tariffs, Australian producers found themselves in an advantageous position, with many Chinese buyers opting for Australian beef as an alternative. Overall, IBISWorld forecasts the domestic price of feeder cattle to swell at a compound annual rate of 4.5% over the five years through 2024-25.