Australian beef producer Australian Agricultural Company Ltd (AAco) says it will expand its live cattle exports with an initial focus on South-east Asian markets as part of moves to return the company to profitability.

David Farley, the company’s CEO said that an expansion of AAco's cattle trading capabilities was an initiative emerging from a strategic review of its business. The company aims to achieve increased live cattle exports per year by 2012.

The targeted start of operations for live exports to core South-east Asian markets is in the fourth quarter of 2010. The company would also investigate expanding live exports into Japan, South Korea, China, the Middle East, Europe and Indonesia, Farley added.

In addition, AACo will be expanding its international boxed beef business through investment in beef-processing facilities, which will be a key activity for the company over the coming years. Capital and assets are expected to be brought into the new business throughout 2010, according to Farley.

Farley said the current season had started well, with ideal rainfall and weather conditions across most of the company’s key properties in northern Australia. Favourable growing conditions had produced above-average weight gains in the cattle herd, and breeder fertility and herd mortality are expected to be better than in recent years.

He added that domestic and international beef prices would remain firm over the short term, given constrained supply of beef and the relative price increase in alternative protein foods such as lamb.

In February, AACo booked an annual net loss of A$53.7 million (US$47.6 million) for the year 2009, after a loss of A$38.7 million (US$35.9 million) in 2008. The company blamed extreme weather, a stronger Australian dollar and subdued cattle prices had contributed to the loss last year.