Australia's lot feeding industry is confident it can meet any feed and resource challenge the future throws at it.
A new Rabobank report that forecasts an opportunity to triple exports of grain-fed beef to China by 2030 has led to questions about how those extra cattle will actually be fed and watered.
Former Australian Lot Feeders' Association president turned industry consultant Jim Cudmore agrees there is an opportunity for major expansion.
"The feedlot industry could quite easily in the next decade, expand to 1.8 million head of cattle on feed," he said.
Based on the Queensland Department of Primary Industries' feedlot reference manual, 1000 head of cattle on feed need access to 24 megalitres of water a year. For the average 1.1 million on feed now that means 26.4 gigalitres a year.
A conservative estimate is that 1.8 million cattle on feed will need 43.2GL of water annually.
Read more:
Industry figures like Charlie Mort, who runs one of Australia's largest feedlot businesses, Mort & Co, said it was important to consider the wider benefit of water used in feedlots.
"1500ML will be enough water for about 80,000 head of cattle a year," he said.
"Those cattle will easily run a 1000-head-a-day abattoir, five days a week, which will employ 1200 people. The feedlot will employ 100, and then you've got transport and other businesses. It's a good utilisation of water."
Mr Cudmore said lotfeeders had been competing for water resources for over 30 years.
"Water is always front of mind in terms of feedlot development," he said.
"You need to have security of supply and quality. You just can't get a feedlot license without adequate water supplies.
"The reality is that feedlots, particularly expanding feedlots, will have to compete with other industries."
Nick and Sarah Cameron know first hand how difficult it can be accessing water for a new feedlot.
The Cameron family built the 4000-SCU Roma Feedlot and Spelling Yards in 2017 on their property south of Roma, Queensland.
Mr Cameron said finding a water licence was one of the most significant challenges in the process.
"They come at a pretty decent cost and they aren't freely available on the open market," Mr Cameron said.
"And overland water is not readily available either. If you were relying on that kind of licence now you'd be watching the dam go down pretty quickly."
Mr Cudmore is also confident feed requirements can be met.
"Those resources, even though they're short in eastern Australia at the moment, can be brought around from the west," he said.
"The cost of putting a kilo on an animal in the feedlot is well relative to the value of the kilo at slaughter."
