February 13, 2006

Australian beef giant aims for a million-strong herd
 

Australia's largest cattle producer-Australian Agricultural Company plans to have a million-strong herd, even if it puts considerable strain on the company's finances, said managing director Don Mackay.

The organisation has to grow by developing its substantial land and cattle assets, Mackay told analysts after presenting the company's full-year figures last week,

The company would spend A$20 million (US$14.7 million) annually over the next 10 years to achieve the million-size herd through its own breeding programme and acquisitions.

Its full-year figures showed it had 502,866 head valued at A$372 million (US$274 million) in December, down from the 523,691 the previous year.

Its 2005 natural herd increase was the biggest in the past four years and the number of breeding cattle increased to 270,000 head.

However, plans for the expansion may go awry as the lack of cash flow in the initial period could be a concern to investors, an analyst said.