AACo reports $47m hit from Queensland floods
Australia’s largest beef producer, The Australian Agricultural Company (AACo), on Wednesday reported a full-year loss of $148.4 million, following the devastating impact of the North Queensland Floods.
The floods resulted in the deaths of 43,000 head of cattle and a $47 million hit to the business.
The company’s net loss widened from $102.6 million a year ago and meat sales fell by a quarter.
Despite the $60 million impact of drought conditions, the company made an underlying profit for the 12 months to March 31 of $37.2 million.
“AACo faced weather related events that were unlike anything seen before: 800,000 hectares of our property were affected by floods, while drought conditions on other properties drove up expenses,” managing director and chief executive Hugh Killen said.
“While we estimate the loss of around 43,000 head of cattle during this tragic Gulf flood event, I’d like to acknowledge all of my team and our neighbours and friends who are also managing the impacts of this disaster.”
Killen revealed that Wagyu herd numbers increased by three per cent, while revenue from Wagyu meat sales rose 4.5 per cent.
AACo reported that it is nearing the end of a transition period following last year’s decision to suspend operations at the Livingstone Beef abattoir in the Northern Territory and drop its budget 1824 brand.