Cattle trade halt sends AACo to a loss
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AAP
2013-01-31
Australia's largest cattle producer Australian Agricultural Company (AACo) made an $8.4 million loss in 2012 due to the impact of a suspension of live exports.
But the company has forecast a turnaround in 2013, after holding back its herd to gain weight and then sell into an improving market.
AACo on Thursday also said recent heavy rains had not fallen on its pastures and that would have a positive impact on cattle markets.
The company's loss for the 12 months to December 31 was down from a net profit of $10.5 million in 2011.
A $41 million write-down in the value of its properties in northern Australia was the main contributor to the profit fall.
AACo said that write-down was made because of the federal government's suspension of live cattle exports to Indonesia in 2011, and Indonesia's subsequent halving of cattle import quotas.
But, managing director David Farley, said the company was poised to generate positive cash flow in 2013.
"AACo held back trading cattle to add weight to and sell into a market (that) we predict will improve following recent rains, and align with the price gains seen on the global market," he said in a statement.
"AACo has grown its herd to a record size while global supply has shrunk, and is now in an excellent position to generate cash by selling into rising global beef prices."
The company had 681,700 head of cattle at December 31, weighing 94.6 million kilograms, a 17 per cent increase from 12 months earlier.
