The $40 million facility was officially opened by the State Minister for Primary Industries and Fisheries, Tim Mulherin, who said the feedlot represented a tremendous vote of confidence in primary production on the eastern Downs, and would deliver substantial benefits to the region.

"It's a great pleasure to be involved in the opening of one the largest and most technically advanced feedlots in Australia, which will hold some 48,000 cattle in a state-of-the-art facility when fully developed," he said.

"Today, the beef cattle feedlot industry is worth $1.3 billion dollars to the State's economy, with feedlots in southern Queensland contributing to more than 90pc of the output capacity.

"Facilities like Grassdale will only strengthen Queensland's food producing capacity for the long term.

"The Grassdale feedlot will bolster the economies of Dalby, Millmerran and Chinchilla and make the region a national leader in grain-fed beef production."

Mr Mulherin said the Mort & Co enterprise, which has developed the operation, was a shining example of regional investment and supported the State Government's plan for achieving accelerated growth in Queensland's primary industries.

"DPI&F is directly involved in promoting accelerated growth in the Queensland cattle feedlotting industry with a range of ongoing and new measures," he said.

"The Department has worked hard to maintain our global reputation for the supply of safe, high-quality Australian beef through the National Livestock Identification System, a world class traceability system.

"On the environmental front, the Department is working with the Australian Lot Feeders Association to explore innovative self-management options tha t can achieve efficiencies in regulatory compliance to reduce red tape.

"As well, we are developing a project proposal to determine the greenhouse emissions' footprint of feedlots that will help in policy and planning decisions on the industry impacts with other economic activities.

"In addition, we are working with Meat and Livestock Australia on research into nuisance fly population management in feedlot pens, as well as delivering a new National Environmental Code of Practice for Beef Cattle Feedlots to be adopted by all State regulatory agencies by late 2008.

"The new code will be used as part of the National Feedlot Accreditation Scheme tool kit, which was an excellent example of the industry taking the lead in self-management and quality assurance."