April 19, 2013

Beef producer, Australian Agricultural Company (AACo), has cautioned of lower cattle prices, as it makes a second attempt at sell its vast Brighton Downs property.

News of the sale came two days after AACo cautioned of affected profits due to the marked-down value of its cattle herd, reflecting a 20% decline in values.

The group had sold cattle in the first quarter of the year at an average of US$1,011.5 per head, down from US$1,295.32 in the same period of 2012.

Cattle prices have been hurt by slower exports to Indonesia, the strength of the Australian dollar and dryness which has stopped a trend of restocking among beef producers, and raised slaughter rates.

The company said that the land disposals reflected plans to focus on northern Australia, where the group is building an abattoir to reduce its reliance on live cattle trade and increasing exposure to higher value products.

"With our strategy of growing our South East Asian supply chain through our proposed Darwin abattoir, it is the right time now to be refocusing on Northern Australia," said David Farley, AACo's chief executive.