Australia’s biggest wagyu producer will ‘keep pushing’ up prices, new CEO says

Even as consumers tighten their belts amid the rising cost of living, Harris expressed confidence that meat lovers would not turn away from its products. “I think consumers still value quality … so instead of consuming [beef] three or four nights a week, you might go for higher quality, but you’ll only consume it twice a week.”

While operating profits were up, net profit slumped 38 per cent to $51.6 million, due to a lower valuation of the company’s herd as cattle prices came down from previous highs.

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AACo’s investors appeared disheartened by the company’s outlook that acknowledged the rising cost of living, pointed to high inflation, cited the IMF’s lowest global economic growth forecasts since the global financial crisis and discussed the prospect of foot and mouth disease or lumpy skin disease in the next five years. AACo’s shares closed 4.96 per cent lower at $1.63.

The results also failed to mention any dividend payments. The company hasn’t paid out profits to shareholders in 14 years, and Harris gave no indication it would do so again in the near term.

“The dividend questions, in particular, I think are a matter for the board,” Harris said, adding that the company had been reinvesting back into the business.

“14 years is a long time,” he acknowledged. “I think what we also have to remember is the things and the conditions that we went through in that storm, we had some very significant droughts and floods, and we’ve got to build the business back.”

Brisbane-headquartered AACo is the country’s largest cattle herd operator, and also owns about 6.4 million hectares, or 1 per cent, of Australia’s total landmass.

More than half of the company (nearly 51 per cent) is owned by billionaire Joe Lewis, a British investor with a net worth of $7.7 billion who owns Premier League soccer team Tottenham Hotspur.

Iron ore billionaire and mining magnate Andrew ‘Twiggy’ Forrest owns a 17.4 per cent stake.