Australian beef producers continue to struggle
Beef producer Australian Agricultural Company Ltd (AAco) is developing a strategy to strengthen its business after reporting "extremely poor" financial results for 2009. Net loss for the year totalled $53.7 million, following a loss of $38.7 million in 2008.
Chief executive David Farley, said: "Droughts and flooding led to serious cattle losses, significantly higher rates of calf mortality and reduced herd weight gains. AAco also faced below average cattle prices during the year, and the negative impact of the strong appreciation of the Australian dollar."
According to the Australian Bureau of Statistics, the country’s total beef and veal production fell 1.5% in 2009 to 2.13 million tonnes. The slaughter of adult cattle fell by 2.6% to 7.8 million head. The slaughter of adult females declined by 1.4% to 3.8 million head, despite a 9% increase during the first quarter. Bad weather and drought reduced the availability of males in the main producing regions, with slaughter down 3.7% year-on-year to 3.9 million head, the second lowest annual total in the last decade. Calf slaughter fell 4% to 781,000 head, with drops in New South Wales and Victoria offsetting increases in other states. However, the annual decline was partially offset by an increase in average weights, which increased 0.8% over the previous year to 270.4 pounds per head.
