Volitility of high grain prices, limited grain supply and an increase in grain demand for ethanol in overseas markets is increasing pressure on the Australian feedlot industry and feeder steer prices and raising the "grain- versus grass-finished" question again.

"This situation does not look like easing in the next 12 months," NSW Department of Primary Industries (DPI) beef livestock officer, Juliet McConochie, said.

The Department’s More Beef from Pastures (MBfP) stand at the forthcoming 2008 NSW Beef Spectacular to be staged over three days between March 5 and 7, at Dubbo Showground will address the issue.

"If you are a grass-finished or feeder steer producer, questions about where the market is heading, what sort of prices will be offered and how long these prices will continue may be on your mind in planning for 2008 and beyond," Ms Mc- Conochie (pictured) said.

"The Feed Supply Demand Tool is one More Beef from Pastures tool that will help producers graph their feed supply against herd demand.

"This is instrumental in determining if carrying on steers to finished weights will be an option under your current pasture base," she said.

The graph, produced using the MBfP Feed Supply Demand Tool, shows the beef herd demand on pasture, and the pasture growth throughout a normal year, for a selfreplacing feeder steer operation. The bars depict the herd demand and the graphed lines show the pasture growth and pasture supply.

Ms McConochie said moving towards a grass-finished system would have implications for producers’ feed supplies, as well as on overall herd management.

"Being in a feeder steer operation for some time makes it difficult to know how steers will perform in a pasture-based finishing system," she said.

Contact Juliet McConochie, Walgett, (02) 6828 0127.