Trends in Grain-Assisted Cattle Feeding Amid Price Fluctuations

Cull cows being shortfed in a Darling Downs feedlot

Recently, lighter cows have faced significant price pressure in eastern and southern Australia. This trend has prompted some cattle to enter grain-assist programs, either in commercial feedlots or via self-feeders in the paddock.

The Goal of Grain-Assist Programs

The primary purpose behind these grain-assist initiatives is not to pursue a ‘grainfed’ AusMeat cipher but rather to enhance the weight and quality of cattle within a short span of 30-60 days. This strategy allows processors to harvest higher quality MSA cuts from the enhanced carcasses.

This approach often emerges during drought periods when the price gap between light-conditioned cows and their heavier counterparts widens. A reference point can be seen in an earlier Beef Central article from the 2019 drought.

Market Dynamics and Pricing Trends

The predominance of grain-assisted cows in current market dynamics is illustrated by recent sales. For instance, a notable number of grain-assisted heavy cows were present at the Wodonga sale this week, averaging an impressive 340c/kg liveweight.

In the direct-to-processor channel, pricing structures have shown sensitivity to cow slaughter weights. The Bindaree Food Group’s Monbeef plant has notable pricing trends, offering +300kg cows at 600c/kg while weighing heavier cows above 275kg see a steep decline in value.

Insights from Industry Analysts

Chris Howie

Regular columnist Chris Howie indicates that there has likely been more cow feeding occurring this year than previously recognized. The southern regions have seen this trend primarily due to drought, while northern Queensland’s cattle are following a typical seasonal cycle.

Mr. Howie notes a program involving 5000-6000 northern cows undergoing a grain feeding regimen, emphasizing that short periods of 35-40 days can create favorable effects, especially for cuts like rump and loin.

The Value of Grain-Assisted Cattle

Mr. Howie highlights that even a few MSA cuts from better-finished cows can considerably enhance overall carcass value. Cows upgraded to better grades may shift from 270kg to 320kg in carcass weight, potentially leading to sales closer to 300c/kg.

However, rising ration costs are becoming a concern, with prices nearing $500/t in the south, exacerbated by a hay shortage for roughage.

Market Opportunities and Challenges

A contact at a NSW processor suggests that recent price increases for lighter cows may close the window for grain-assisting opportunities. As light cow prices climb from 230-240c/kg to 280c/kg, the economic feasibility of grain feeding diminishes.

Global Demand and Future Prospects

Strong global demand for beef, particularly from markets such as the U.S. and China, fuels the current trend of grain-assisting lighter cows. Despite the financial appeal, commitments to existing programs often complicate engagement in grain-feeding ventures.

While feeding light cows presents advantages, including a high average daily gain of 2kg to 2.4kg/day, operational risks such as the potential for unwanted calves also exist. However, if the processing plant can accommodate such outcomes, it may benefit overall operations.