The Australian Agricultural Co. (AACo), Australia’s oldest listed company, and its largest land and cattle company, is looking to co-invest with cattle families to boost production in order to meet growing global demand.
Concluding that the path to success for the industry as a whole lies in undoing its fragmented system and increasing coordination, AACo stated it is looking to provide financing and time-tested farm management systems to smaller beef operations.
“As we build our business, our intent is to engage all beef producers as participants in the same ecosystem,” Mr. Shehan Dissanayake, AACo director and managing director of its majority shareholder, Tavistock Investment Group said at the Beef Australia symposium.
AACo is working on building its brand, but feels compelled to engage other, smaller cattle producers to create a profitable future.
The Australian cattle sector is in the midst of striving to rebuild after massive culling rates due to severe drought over the past two years, just when new free trade agreements with Asian markets are resulting in an increase in trade and demand. The intensifying competition for access to cattle, and the unspoken fear that the group will not be able to source sufficient cattle for its new $90 million abattoir in Darwin is likely underlying AACo’s newest endeavor.
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