Australian Agricultural Company Limited
(ASX:AAC) has posted a $31.6 million loss for the first half of its fiscal year, blaming a slump in domestic cattle prices.
AACo says average prices for live cattle fell 12 per cent over the six months, contributing to a drop of $20.4 million in revenue from live cattle sales.
The beef producer says domestic cattle prices continue to be depressed due to the ongoing effects of the previous federal government's June 2011 suspension of live cattle exports to Indonesia and below-average seasonal rainfall in northern Australia.
The result from live cattle operations was partly offset by a strong performance from AACo's branded beef division, which improved its profit margins by concentrating on higher value customers and improved yields.
