The Rise of the Lot Feeding sector

Jen Peart, Northern Development Officer

The Australian lot feeding sector has undergone considerable expansion in recent years, with notable feed yards around the country increasing capacity.

The Australian Lot Feeders’ Association recently reported The key difference is the increased emphasis on mature cow more than 1.1 million head on feed for the September weight in the $GN index, whereas this emphasis is given to 2021 quarter, representing the 15th consecutive quarter calving ease and fertility in the $GN-L index. (2018 onwards) of more than 1 million head on feed and The Angus Breeding Index ($A), Angus Breeding Low illustrating the more prominent role lot feeding now plays Feed Cost Index ($A-L), Domestic Index ($D), Domestic in the Australian production environment. Low Feed Cost Index ($D-L) and Angus Terminal Sire Index Driven by dry conditions across the eastern seaboard, ($T) also include trait components that improve overall net a contraction in national herd size and buoyed by the profitability in grain finishing beef production systems. For international market, an increasing proportion of Australia’s example, the Domestic Indexes cater to either grass fed, beef production is grain fed. In the 2000’s, lot feeding grain assisted or short fed (50-70 days) finishing scenarios. accounted for an average of 29% of Australian adult Selection indexes are a key tool for identifying animals slaughter cattle while in more recent years, this ratio has suitable to specific production systems and target markets climbed to as high as 40% (ABS, ALFA, MLA). however it is important to consider individual traits relevant Unsurprisingly, the number of producers targeting the feeder to your operation. market is considerable. In a producer survey conducted in In addition to the importance placed on production traits 2019 and reported in detail in Angus Australia’s Australian to cater for performance in the lot feeding sector, Angus Beef Breeding Insights report, 31% of producers nominated Australia is considering other traits that will have impact the feeder market as their target market. These producers in the feedlot environment. ImmuneDEX is one such trait, managed roughly a quarter of the Australian breeding herd designed as a resilience trait to improve animal health (3 million head). and welfare. Of those targeting the lot feeding market, 70% utilise the The ImmuneDEX research breeding value provides an Angus breed in their breeding operation – equating to 2.1 estimate of genetic differences between animals for overall million females, half of which are straight bred Angus. immune competence by measuring an animal’s ability to These estimates go a long way to illustrate the influence mount an immune response when challenged. ImmuneDEX that any improvements in genetic technology for Australian is moderately heritable and negatively correlated with some Angus cattle can have on production in lot feeding. production traits such as carcase weight and eye muscle Selection for traits such as growth (200, 400 and 600 area, while being favourably correlated with the stress and day growth), feed efficiency (Net Feed Intake) and carcase temperament related traits. quantity and quality (carcase weight, rib & rump fat, eye During trials in the Angus Sire Benchmarking Program, muscle area and intramuscular fat) are key considerations animals with superior immune competence phenotypes when breeding for the feeder market. had significantly fewer health-related mortalities and The recently enhanced selection indexes have been incurred substantially lower health related costs during developed with key target markets in mind, including the feedlot finishing. This represents significant opportunity feeder market. to incorporate genetic selection as an effective means to The heavy grain indexes ($GN and $GN-L) have been prevent or mitigate the impact of diseases in lot feeding specifically formulated to estimate the genetic difference scenarios such as Bovine Respiratory Disease (BRD). BRD is in net profitability between animals when breeding for a major cost to the lot feeding industry from several different performance in long fed scenarios. In both heavy grain aspects, such as cost of prevention, loss of production, indexes, there is a focus on improving growth, carcase, calving mortality and cost of treatment. ease and fertility traits as it is assumed that replacement Other RBVs, such as Coat Type, which allows producers to heifers are retained. leverage the genetic difference between animals and breed progeny with slicker coats, may also be of benefit to the feedlot industry due to its implications with heat resilience and dagging. Given the growth of the feedlot sector and the appetite of lot feeders for consignments of Angus cattle, Angus breeders are in the unique position to breed a high performing article with the sector in mind. By utilising the breeding values, selection indexes and research available, genetic gains can be made in performance traits key to the feed yard all while retaining vital on-farm performance attributes such as calving ease, fertility and temperament.