Inundated property faces ’extreme’ losses to its 30k herd Cattle station cops hiding

ONE of the country’s largest grazing companies is bracing for “extreme” losses at its 30,000 head of cattle Wondoola station in flood-ravaged northwest Queensland.

Australian Agricultural Company (AACO) said four of its properties would be severely impacted by unprecedented levels of flooding in the Gulf region.

“Our immediate focus is on our people, the welfare of our animals and the tight-knit communities in which we operate,” the company said.

AACO said its Wondoola station, 130km south of Normanton, and between the Saxby and Flinders rivers systems, had been most affected.

“Its current herd of approximately 30,000 head of mainly cows and their calves is expected to sustain extreme losses,” AACO said. AACO’S Canobie, Dalgonally and Carrum stations, which have a total herd of approximately 50,000 cows and their calves, are expected to sustain lower but still material losses.

“Current conditions are still challenging and a credible assessment of the impact on livestock and infrastructure will only be possible once the flood waters have started to recede. This is likely to occur over the coming weeks, noting there is still a possibility of further wet season storms.”

AACO said its balance sheet and financial position remained strong, although its shares on the ASX were hammered yesterday, plunging 12.3 per cent to 93 cents.

Across the region, more than 500,000 head of cattle are predicted to have been lost after a year’s worth of rain fell in two weeks.

Early estimates put the damage to the northern Queensland farm sector in excess of $300 million.

Shares in chemicals and fertiliser manufacturer Incitec Pivot also fell yesterday, sliding 2 per cent to $3.31 after it revealed potential losses from the flood.

Incitec said it will lose $10 million in earnings a week due to the closure of the rail line between Townsville and Phosphate Hill. The Phosphate Hill fertiliser facility is undamaged but began a progressive shutdown over the weekend.

“(Incitec) currently estimates that the impact of the rail closure will give rise to lost earnings before interest and tax of approximately $10 million per week from 9 February 2019 until resumption of full production,” the company said.