The number of cattle on feed remains at 743,000 head, which Australian Lot Feeders' Association (ALFA) president Jim Cudmore said was the result of the benefit of modest declines in feeder cattle and grain prices being offset by the rising Australian dollar and continuing sluggish demand in export markets.

"While turnoff increased by 8pc over the quarter, the increase in cattle numbers in Queensland and Victoria was countered by a decline in Western Australia," Mr Cudmore said.

"Feeder cattle prices averaged 3pc lower than the corresponding quarter last year as a result of decreased competition from re-stockers and processors, along with increased supply in NSW and Queensland as continuing dry conditions forced cattle onto the market.

"Feed grain prices were on average 26pc lower than this time last year as a strong northern hemisphere harvest improved global grain stocks, while the predicted 18pc increase in Australia's winter crop and strong Australian dollar also applied downward pressure."

Meat & Livestock Australia’s chief economist Peter Weeks says grainfed beef exports remained steady compared to the same period last year, with the bullish Australian dollar and increased US competition stifling the sector’s recovery from the global financial crisis.

"Compared to the same period last year, Australian grain fed beef exports rose 1pc into Japan but declined 5pc into Korea," Mr Weeks said.

"Trading conditions into these key markets also became tougher as the quarter progressed with the Australian dollar increasing by 6pc against both the Japanese yen and Korean won."