The Australian Agricultural Company (AACo) has announced a significant growth in its cattle herd size, reaching approximately 455,000 head, showcasing a 5% increase. However, the company also noted a decline in the value of the herd by nearly $150 million, reflecting the challenging economic conditions affecting the agricultural industry. AACo's chief executive, David Harris, expressed optimism regarding the future improvement of cattle prices but emphasized that the market might not quickly return to the record highs witnessed in 2022.
AACo, commemorating its 200th year of operation, has reintroduced its 1824 Wagyu brand, symbolizing the company's rich heritage and long-standing dedication to perfecting its craft over two centuries. Originally focusing on sheep farming in New South Wales, AACo now manages the largest herd of F1 Wagyu cattle in Australia, spanning over 6.5 million hectares in Queensland and the Northern Territory. The company's premium Wagyu beef is primarily exported to international markets, with overall meat sales revenue increasing by 10% this year.
Mr. Harris highlighted that AACo experienced a 28% growth in branded meat sales to Asian markets over the past 12 months, while sales in Europe, the Middle East, and North America exhibited slight decreases. Notably, innovative products like "Wagyu bacon" have resonated well with consumers in the Middle East, offering a unique value-added option tailored for markets that do not consume pork. Mr. Harris emphasized the positive reception of this product, describing it as not only unconventional but also highly delicious, capturing the interest of discerning consumers seeking premium meat products.