The Australian Agriculture Company (AACo) received final approval from its board for the construction of its planned abattoir in Darwin, Australia. The project is expected to be completed by the second half of 2014. The abattoir is a critical step for AACo in its strategy to become fully integrated in the Australian beef sector and is expected to open new routes to market and reduce transportation costs. In the three months to June 30th AACo sold 99,654 head of cattle at an average price of $676 per head compared to 68,660 head of cattle sold at an average price of $967 per head during the same period a year earlier. Of the total 28,275 were grass finished, 2,807 were short grain finished, 39,456 were breeder and feeder cattle, 20,146 were live exports and 8,970 were Wagyu. According to company reports, despite lower volumes sold gross margins have exceeded the budget.
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