Drought and Indonesia woes push AACo to a first-half loss
07/11/2013
“Continuing drought conditions in Queensland and Northern Australia and the uncertainty in the live export trade have resulted in an accelerated sales programme with 172,517 head sold to 30 September 2013 compared with 147,693 head in the year-ago period,” it said in a statement.
The dry conditions have brought about destocking across the cattle industry forcing prices lower than prior years. Prices achieved to 30 September 2013 averaged $731 per head compared with $919 in 2012.
It said live cattle sales to exporters supplying the Indonesian market “remained challenging”.
“Feeder cattle prices to Indonesia declined in mid-2013 as Indonesia would not issue permits. However, recent positive developments now suggest Indonesia recognises that its beef requirements include feeder cattle from Australia and with new markets such as Vietnam competing for cattle, export market prices are rising.”
In May, the group wrote down the value of its herd by A$43 million.
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