February 2, 2012

AACo's 2011 profit up 41% despite live cattle export bans

The Australian Agricultural Company (AACo) has reported AUD58 million (US$62 million) in pre-tax earnings for 2011 with overall earnings up by 41%, despite the suspension of live exports to Indonesia.

AACo booked a net profit after tax of AUD10.5 million (US$11.2 million) for the year, up from AUD904,000 (US$968,000) in 2010. The company did not declare a dividend.

Despite disruptions caused by the export ban in June, live cattle revenue rose by 47% to AUD231 million (US$247 million). Chief executive officer David Farley says AACo sold more than 80,000 live cattle for export, compared with 76,000 in the previous year.

"You know we are an important part of the red meat protein supply to an Indonesia of 245 million people," he said. "I think Australia will always be there."

Farley says Indonesia and Australia are working to repair the damaged trade relationship.

Meanwhile, AACo says it's seeking co-investors to build an AUD80 million (US$85.7 million) abattoir south of Darwin. The company says it will be open to applicants once government support for associated infrastructure is secured.

AACo lodged a development application with the Northern Territory government in September 2011. At present, there are no local beef processing facilities in northern Australia.

AACo says an abattoir will allow cattle to be processed locally, reducing transport and freight costs for producers who are currently forced to truck livestock to southern processing plants.