Business Description:
Australian Agricultural Company Limited (AAC) is the largest beef cattle producing company in Australia, servicing beef customers in domestic and global markets.

Strategy Analysis:
A key objective of AAC´s strategy is to improve the company´s operational performance through better management of its supply chain. Additionally, the company sees opportunities to develop a more vertically integrated business model by expanding its cattle trading and beef processing activities and also developing a breeder alliance program, including the leasing of pregnant cows to selected graziers. Plans are underway for the establishment of a meat processing facility in Darwin. As part of the three year plan improvements are also being made to the herd profile with reductions in the average age of breeding cows and bulls. Australian Agricultural Company reported a net loss of $12.57m for the half-year ended 30 June 2011. Revenues from ordinary activities were $122.79m, up 26.5% from the same period last year. Diluted EPS was (4.0) cents compared to (4.6) cents last year. The net operating cash outflow was $56.92m compared to an outflow of $43.65m in the pcp. No dividend was declared.