Australia’s red meat and livestock industry entered 2025 with renewed confidence after a turbulent period marked by dry conditions, market disruption, and rapid shifts in global supply. According to the State of the Industry Report 2025, the sector saw record production, strengthened export performance, and a gradual price recovery across both cattle and sheep.
The report highlights an industry that has not only stabilised but is now positioned for stronger growth thanks to ongoing investment in genetics, increased processing capacity and shifting global trade dynamics.
State of the Industry Report 2024 highlights
The operating environment
Data from 2024 highlighted several key trends shaping the Australian livestock industry heading into 2025. Australia accounts for 1.9% of the global cattle herd and 5.9% of the global sheep flock, while domestic consumers remain among the world’s highest red meat consumers. Global demand continues to grow, particularly for sheepmeat and poultry, reinforcing Australia’s position as a major supplier as the world’s second-largest beef exporter and the leading exporter of sheepmeat and goatmeat. Improving seasonal conditions in late 2024 also helped stabilise prices and restore confidence among restockers.
The industry environment
The 2025 report showed an industry balancing opportunity with ongoing pressure. Total turnover for the Australian livestock industry fell 10.3% year on year to $77.1 billion following price contractions in 2023, while processing was the only segment to record growth, increasing by 5.4%. At the same time, the national cattle herd expanded to 30.4 million head, its largest in five years, and the sheep flock grew to 79.1 million head, with goatmeat production and exports reaching record highs. The report also highlighted continued investment in genetics, feedlot capacity and processing capability as key drivers lifting productivity across the red meat supply chain.
Want to learn more about how 2023-2024 industry performance stacked up against 2022-2023? Read our overview of last year’s report.
Species performance statistics
Beef cattle market trends
The national beef herd reached 30.4 million head, up 1.6% year on year, while feedlot numbers hit a record 1.5 million cattle on feed with 87% utilisation. Beef production rose 16% to 2.6 million tonnes carcase weight. The US became Australia’s largest beef export destination in 2024, while grainfed beef exports totalled 375,197 tonnes, with Japan and China remaining key markets.
Sheep industry in Australia
Lamb slaughter reached record levels for a second consecutive year, supported by strong genetic improvements that have boosted fertility, resulting in higher marking rates and year-round breeding. Australia continues to hold its position as the world’s largest sheepmeat exporter, supplying key international markets.
Goat market trends
Goat production and exports reached all-time highs, driven by increased processing capacity that has established a “new normal” of consistently high output. Major export markets remain the US, South Korea and China, reflecting strong global demand.
A snapshot of industry issues
The report outlines several challenges and emerging issues facing the industry:
- Price volatility caused by oversupply during the 2023 drought period
- Rising input costs, particularly feed for grainfed operations
- Labour shortages across processing and production
- Shifts in global supply, including declining US beef output and the continued contraction of NZ sheep numbers
- Climate and sustainability pressures influencing long-term planning
- Structural changes in the number of farm businesses, driven by consolidation
These snapshots highlight the importance of resilience, productivity and innovation in maintaining Australia’s competitiveness.
How XytoVet supports the Australian livestock industry
In a market where efficiency, productivity and differentiation are increasingly important, genetic testing is one of the most powerful tools available to producers. The State of the Industry Report 2025 shows an industry with strong production capability, expanding export influence and renewed confidence. Producers who understand their genetics are better equipped to improve fertility, growth, carcass value and resilience, driving measurable performance gains.
XytoVet helps producers meet this demand by providing advanced genomic testing for sheep, cattle and goats, flock and herd profiling to benchmark genetic performance, and trait, carrier and parentage testing to enable more accurate selection decisions. We also provide decision-support insights for breeding, ram selection and replacement strategies, along with practical guidance from sample collection through to interpretation of results.
If you’re planning your next breeding season or want to better understand the genetic potential of your flock or herd, get in touch with XytoVet today. We’ll help you unlock data-driven improvements and build a stronger future for your livestock business.
