Current SP is a reflection of the current market prices for...

Current SP is a reflection of the current market prices for cattle sales across Australia.

Prices are currently reaching levels similar to September 2017 which was a pricing point identified in the last numbers from AACo as the reason for poor numbers. This is where there is a disconnect between the business that they are in and the business that they say they are pursuing. Sure if they where just a grower of beef the current market sales price is a big driver of valuation. As a value adding business the current beef prices should be beneficial to an improved bottom line. As input costs of production are lower profit margin should be higher. I do not believe that branded boxed beef prices have fallen in line with the cattle sale price per kg.

This is where AACo management need to confirm to the market that they are gaining an advantage due to their value add strategy. If not they will continue to be valued on the basis of current cattle prices and not as the business they profess themselves to be in.