Aussie cattle producer beefs up profit, despite floods
Australia’s biggest cattle and beef producer has taken a financial hit from this year’s Queensland floods and faces higher costs due to the Middle East crisis.
However, demand for beef protein in Australia and globally remains strong, giving Australian Agriculture Co (AACo) positive momentum heading into financial year 2027.
AACo posted a net profit of $107.3 million in fiscal 2026, a big turnaround from last year’s $1.1 million loss.
The preferred measure of operating profit rose 23 percent to $71.6 million on higher revenue of $422.1 million for the year ended March 31.
Beef sales increased seven percent to $314.4 million, while cattle sales increased 15 percent to $107.7 million.
The impact of flooding in North Queensland in March, which severely affected most cattle properties, cost $9 million and impacted operating bottom line.
Approximately 7,000 cattle with a market value of approximately $13 million died as AACo was left stranded by flood-related repairs, helicopter pickups and feed deliveries.
At the same time, some of the impact of the flood was offset by higher cattle prices.
“The company’s results in recent years demonstrate the growth trajectory we aim to continue to develop as we enter the new year,” said chief executive David Harris.
Looking ahead, fluctuations in energy, transportation and production costs, which started with the US attack on Iran in February and increased, will affect 2027.
“While the duration and circumstances remain uncertain, this is expected to impact our global supply chain,” AACo said.
But demand for protein continues to grow and AACo said it was well positioned to benefit from this, building on its reputation for delivering consistently high-quality products at scale.
“We will enter the next era united, committed and confident in what we can achieve,” Mr. Harris said.
AACo owns and operates 22 cattle stations, two feedlots and farms covering approximately 6.4 million hectares in Queensland and the Northern Territory.
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