Conclusions
- Analysis indicated that feedlotting profitability is generally negative or low, based on the input values analysed and regardless of feedlot size or throughput.
- Small profits were possible when the restocker/feeder price (c/kg) was 86% or less of the trade price eight weeks later.
- Changes in ration cost have a smaller impact on profitability than the lamb purchase and sale prices.
- Once restocker/feeder values are known, historical seasonal price patterns are a useful tool to estimate the value of finished lambs if forward contract prices are unavailable.