Northern cattlemen expect bumper year

After an initially positive week, which saw shares rise 3.3pc to $1.86, the price fell back 6pc to $1.76 on Thursday.

AACo said that the rain in many of its key regions was ‘the best in 90 years’ and expected it would boost feed reserves for two years, while lowering the dependence on imported feed grain, which will it claimed would dramatically lower input costs.

Slightly improved cattle prices were not factored into the AACo report, with the company saying that the mark to market value of the herd went up less than expected for the second half, in spite of a depreciating Australian dollar, taking the total year value to $12 million.

But the company is confident the falling Australian dollar will make Australian beef exports more competitive, while it also forecasts that the fall in diesel prices will also be a marked benefit.

Another positive was a 5pc increase in valuation of a sample of AACo properties.

While there were declines in central and southern Queensland, the value of some of the more remote properties, in particular in the Barkly region in the Northern Territory and in the Queensland Gulf country, rose appreciably.

Final AACo numbers are expected to be released to the market on February 10.

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