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Tough times for AACo in Quarterly Operation Update

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Australia’s largest beef producer, the Australian Agricultural Company, has announced its quarterly operational update highlighting declines in cattle prices, low rainfall and export suspensions.

A continuation of decreased rainfall has resulted in levels now lower than the 2007 drought in ACCo’s Northern Australian properties according the recent ASX announcement.

The adverse weather conditions have continued to affect domestic cattle prices and a decline in demand for re-stocking cattle has also resulted in prices below the 2012 Eastern Young Cattle Indicator (EYCI) benchmark.

The Federal Governments suspension of live exports to Indonesia and the strong Aussie dollar have continued to affect prices and pressure the domestic market. The AACo is expecting to experience a negative non-cash mark-to-market impact on the valuation of the breeding and trading herds.

The AACo is said to update the market in mid May 2013 regarding its financial results and ongoing cattle sales strategy.

Beef sales however have enjoyed a first quarter increase of 65 per cent in kilograms sold which has been credited towards improved inventory management, new customer and market development as well as increase numbers of AACo’s signature beef brand.

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