February 4, 2009
AAco remains upbeat despite projected loss for 2008
Beef producer Australian Agricultural Company Ltd (AAco) is expecting a 2008 loss of A$39-42 million (US$25-27 million), but the company remains confident of its outlook in 2009.
AAco attributed the projected loss to drought and non-cash accounting adjustments. However, the company also stated it had an outstanding start to the 2009 season, with some of the highest rainfall in 90 years.
Lower feed and oil prices, falling interest rates and the declining Australian dollar will also be beneficial, according to the company.
While cattle prices did strengthen slightly, the projected sharp increase of cattle prices resulting from the weakening Australian dollar did not materialise due to instability in global markets. Also, seasonal conditions did not improve significantly until January 2009.
