November 7, 2012

Australia's WAMMCO affected by financial losses

Meat processor, WAMMCO Co-operative, has suffered losses of US$885,000 for 2012.

WAMMCO has told 1830 shareholders, Western Australian farmers, they won't get a rebate this year.

The Co-op has two export focussed abattoirs, at Katanning in Western Australia and Goulburn, in New South Wales.

The chairman of WAMMCO directors, Dawson Bradford says the company managed to avert more serious losses by targeting their export markets better.

There's is pessimism about the live export sector which is keeping prices lower in the sale yards.

Western Australian producers will also be competing with a Spring flush of lambs from the eastern states which will soften prices further.

"Lamb supply could become short later in the year, where in the eastern states lamb supply will be abundant for the whole year.

"We could get caught in the situation, where the east and New Zealand could have lamb at a much lower price but trying to sell into the same market as we are."