Beef Outlook Bright
AUSTRALIA - With soaring input costs, a wildly fluctuating dollar and high interest rates early on, 2008 has been a tough year for most beef producers.
29 December 2008
1 minute read
But it's not all bad news, according to the report in Weekly Times Now.
According to one of Australia's "big four" banks – the National Australia Bank (NAB) – beef producers have modest levels of debt, relatively strong operating profitability and good prospects for the future.
The first data from NAB's national agribusiness benchmarking program indicates its beef producer clients turning over more than $1 million annually pocketed an average $551,000 in earnings before interest and tax in 2006-07, according to NAB agribusiness general manager, Khan Horne.
"Larger producers are generating these returns from a relatively comfortable debt-equity position, with the over $1 million revenue group having an average equity position of 71 per cent," he said.
"While averages do not describe the extremes of fantastic performers and businesses that have struggled, overall, Australia's beef industry is in good shape to capture future opportunities."
