The Australia Animal feed market is expected to grow at a compound annual growth rate of 3.28% over the forecast period to reach a market size of US$ 5.398 billion in 2025 from US$ 4.449 billion in 2019. Beef production in Australia in 2019 reached 2.432 million tons, the highest since 2015, and beef production levels continued to increase throughout the year (Source: USDA). However it is expected that the Australian beef production to drop by significant rate in 2020 since the industry is expected to enter a period of stock rebuilding. Beef production is expected to continue to be high in early2020 due to record feedlot numbers at the end of 2019. The subsequent lack of feed has resulted in high cattle turnoff and destocking in 2019, and subsequently higher slaughter rates. Besides, the lack of pasture and high foreign demand for grain-fed beef has also resulted in the number of cows in feedlots reaching record levels in 2019. The increase in slaughter has also boosted beef exports in 2019, especially to China – with export levels in July reaching a four-year high. According to the recent report by USDA as a result of expectations for continued strong retail beef prices due to an increase of 6 % in 2019, compared to 12% for lamb and 4% for chicken, it is expected that beef consumption in Australia to continue to decline slightly in 2020. This is after a long-term trend of falling beef and lamb consumption in Australia and rising consumption of chicken.
Primarily due to an expected low feed use, Australian consumption of wheat is forecast to fall in 2020/21.The multi-year drought had a major impact on the livestock industries as the lack of pasture boosted feeding of grain both on-farm and a sharp expansion in the number of animals at feedlots.Cattle at feedlots reached a record level at the end of 2019. However, with a good amount of rains during early 2020 has boosted farmer confidence in pasture growth, and the livestock industry has begun a period of herd rebuilding. This herd rebuilding is causing a fall in the number of animals at feedlots, as well as less need for on-farm feeding of grain leading to a probable lower level of wheat for feeding both in 2019/20 and 2020/21. As with wheat, barley feed consumption is expected to fall in 2020/21 as a result of less livestock feeding in light of significantly better rainfalls and pasture growth. The total barley feeding is expected to be slightly higher than the previous year as strong wheat prices have caused the feed industry to switch to more barley use. Further, due to the combination of a larger sorghum crop, coupled with sorghum growing areas being near key livestock production areas and feedlots, sorghum feed use is expected to rise. Nevertheless, due to comparatively low demand for feed consumption the demand for export of feed raw materials [Source: USDA]. Thus, from the aforesaid facts and estimations, it is discerned that despite a dip in domestic feed consumption, the Australian feed market will be poised for healthy growth during the forecast period.