Consolidated Pastoral points to cattle ban pain

05 Jul, 2011 05:55 AM
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AUSTRALIA'S largest cattle exporter to Indonesia, Consolidated Pastoral, has made a $19 million net loss after tax for the full year to December 2010 and is citing government policies as a major weight on its potential to invest further in Australia.

Majority owned by London-based private equity firm Terra Firma, Consolidated Pastoral, whose livestock assets are worth more than $233 million and held through Lake Woods Holdings, declares in its financial report that a key concern for its operations is the outcome of government policies, according to The Australian Financial Review .

"Any change in policies of the governments of Australia or Indonesia with regard to the sale and transport of cattle can affect the sales and profitability of the company," chairman and chief executive Ken Warriner said.

"The live export trade was holding up well prior to the recent suspension into Indonesia, Australia's principal live export market."

Mr Warriner said the recent ban also meant the company's planned investment in northern Australian agriculture had been cut short.

"The challenges relating to the Indonesian market have curtailed our desire to acquire land in areas overly dependent on that trade," Mr Warriner said.

"All markets and opportunities are being monitored closely. However the appropriate opportunities are quite rare at this time due to the lack of suitable sizeable properties coming onto the market that meet Terra Firma purchasing guidelines."

Consolidated Pastoral's total asset value slipped to $696.1 million in the full year compared with $703 million in the previous corresponding period.

Cattle prices have started to fall across eastern Australia as export- destined stock is pushed onto the crowded domestic market.

The Australian Financial ReviewSource: http://www.afr.com
Date: Newest first | Oldest first

READER COMMENTS

Jen from the bush
6/07/2011 6:00:42 AM

Yep they - please note it is an overseas company - have just purchased 2 places in Central Queensland - Gowan and Cooinda. So that is 2 more places leaving Australian farmer hands.
cattle carnage
6/07/2011 1:15:25 PM

"The challenges relating to the Indonesian market have curtailed our desire to acquire land in areas overly dependent on that trade," Mr Warriner said. The key word here is "overly", no smart business man puts all his eggs in one basket. MLA needs to source other markets, in addition to Indonesia, to minimise risk so this situation does not happen again.
Toldya
8/07/2011 11:12:19 AM

so 'Jen from the bush', did Australian buyers have the same opportunity to purchase this land. If so, why didn't they? The land will always remain in Australia, so what is the issue?

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