Spot on stayer. My assumption is from the interview that he...

Spot on stayer. My assumption is from the interview that he doesn't know where break even point is or how to get there. Maybe it is out of reach.

It seems they have over reacted in their quest to become a vertically integrated beef company and forgotten their core business. I have no doubt that breeding and growing cattle on pastoral leases and selling either live export, to meat processors or as store cattle to feeders would have been been the most profitable part of the business with less risk and overheads. With the land they hold and the recent government initiatives to diversify pastoral property use it seems they went the wrong way and now are missing the boat.

In managements defence the cow price was shocking when they planned the meat works during the drought. However I think they could of persisted with branded product and service kill/boning. Elders had the right idea they sold half of Kilroy but retained the grain feeding and marketing divisions. At least when you get a service kill and bone you know the exact costs and don't have any of the headaches. Also your working in with the meat works instead of against. Not sure if it's wise to try compete with JBS or Teys selling product to their customers and then try to sell them livestock.