AAco is pursuing cattle export opportunities in other south-east Asian markets including Vietnam and the Philippines. Photo: Michele Mossop
AUSTRALIA would remain a strategic supplier of cattle to Indonesia, says major exporter the Australian Agricultural Company, despite last year's export ban and Indonesia saying it would reduce imports.
Releasing AAco's full-year profit yesterday, managing director David Farley said greater self-sufficiency in beef had been been ''an ambition for Indonesia for some time now''. But there would still be a strong demand, he said.
Meanwhile, AAco was pursuing opportunities in other south-east Asian markets including Vietnam and the Philippines, and increasing exports to Europe.
Mr Farley estimated last year's ban on exports to Indonesia cost AAco between $5 million and $8 million, but said it was still not clear whether the federal government would pay compensation.
In year two of a three-year turnaround strategy, AAco reported a big jump in net profit of $10.5 million for the 2011 calendar year, up from $904,000 in 2010, but did not declare a dividend.
RBS Morgans analyst Belinda Moore said AAco's result beat her expectations but she questioned the large operating cash outflow and continuing high debt levels that resulted in an interest expense of more than $30 million a year. AAco's shares rose 0.5¢ to $1.39.
