Australia's latest feedlot survey results show numbers of cattle on feed rising by 8.5 per cent to 1,256,832 head in the June quarter.
The data, collected by the Australian Lot Feeders' Association and Meat & Livestock Australia, shows the number of cattle on feed was the second highest on record.
ALFA president Barb Madden said record numbers on feed in Queensland and South Australia had pushed the national figure up - despite declines in NSW, Victoria and Western Australia.
Numbers on feed in Queensland and SA rose by 17.6pc and 18.6pc respectively, while NSW, Victoria and WA numbers dropped 1.4pc, 8.3pc and 19.4pc across the quarter.
National capacity remained steady at 1.56 million head. Utilisation rates increased from 74pc in the March quarter to 81pc in the June quarter.
"Despite input cost pressures and an uncertain economic outlook, high utilisation rates demonstrate continued demand for grainfed beef and confidence in the feedlot production system," Mrs Madden said.
Tim Jackson, MLA's Global Supply Analyst, said Australian grain prices were at near-record levels and had been since the start of 2022, but were internationally competitive.
"Wheat prices for the Darling Downs traded up 2pc at an average of $408/tonne during the quarter, however this represented a 25pc discount to American export HRW, compared to a historic average of 5pc," Mr Jackson said.
"Even though feed prices have been rising, the relative price advantage will assist Australia's position in international markets."
Grainfed beef exports strengthened by 8pc from the March quarter, with strong demand from China and South Korea balancing softer exports in Japan.
Mr Jackson also said feeder cattle saleyard throughput strengthened in the June quarter, while prices and average weights eased. While easing prices offered some cost relief, other input costs remained well above historic levels, and consumer confidence in key export markets was lower than year-ago levels.
Despite this, the June survey results show the continued resilience of the lot feeding industry.
"Australian grainfed beef is in demand around the world, as the increasing diversification of export destinations shows," Mr Jackson said.
"Strong growth of numbers on feed demonstrate the capacity of the lot feeding industry to meet that demand."
