February 7, 2007

AACo expects modest price rise in beef with improved climate
 

Australian Agricultural Company Ltd (AACo) recorded a 40 percent fall in annual profit, but expects modest price rises in beef this year with the easing of drought conditions.

Australia's largest beef producer said its calendar 2006 net profit dropped to US$10.1 million from US$16.78 million last year due to severe drought in the H2 of 2006.

The company CEO Don Mackay said cattle prices would rise modestly as the effects of the drought start to dissipate. Northern Australia, home to the majority of the company's 560,000-strong herd, has enjoyed a great start to the year and the general consensus was that El Nino was breaking down, he added.

The company plans to double the size of the herd by 2015, acquire additional grazing lands and improve land-carrying capacities by up to 20 percent on selected properties.