New push for boxed meat
AUSTRALIAN Agricultural Company’s shift towards exporting packaged meat will cushion it from the fallout from Indonesia’s massive cut to live cattle imports, the company says.
In a shock move, Indonesia has reduced the quota of live cattle imports to 50,000 this quarter, down from 250,000 in the same period a year ago.
AACo’s transformation from a cattle producer to a boxed meat exporter has created a more robust business, it said at its annual meeting in Brisbane yesterday.
“As Indonesia’s recent decision to reduce live cattle imports demonstrates, product and market diversity is important,” AACo chairman Donald McGauchie said.
Since Australia temporarily banned live cattle exports to Indonesia in 2011, AACo has been growing its business in the boxed beef market.
The company spent $91 million building the Livingstone Beef abattoir in Darwin.
AACo managing director Jason Strong said the volume of cattle processed at the plant was progressively increasing to meet demand.
Boxed beef sales accounted for 77 per cent of group revenue in the 2015 financial year, up from 59 per cent in fiscal 2014. Wagyu beef accounted for 52 per cent of its boxed beef revenue.
AACo shares shed half a cent to $1.345.