In contrast to last year, some of the Top 100 meat processors battled the weather in 2017, according to this year's annual Top 100 Australian Food & Drink Companies report, produced by Food & Drink Business in collaboration with IBISWorld.
The meat sector, specifically beef producers in Queensland and NSW, experienced drought conditions and a decline in herd numbers, according to IBISWorld senior industry analyst Bao Vuong.
NH Foods Australia (NHA) saw its revenue decrease 19 per cent, and G & K O’Connor saw its revenue fall 28 per cent, according to Vuong, who said both were impacted by these issues.
Geraldton Fishermen’s Co-operative Ltd went from rank 56 to 64 this year, after a 19 per cent decrease in revenue. Vuong pointed to a big slump in price for lobsters, which reduced the amount of revenue received per lobster.
“Driving the fall has been a downturn in demand from China, the fishery’s biggest market, at the same time as the entry of US lobster exports and increased competition from the Eastern States,” he said.
Bucking the trend was Bindaree Beef, which in 2015 announced a merger with Sanger Australia, which has resulted in the formation of a new group called the Bindaree Beef Group.
Golden Cockerel also saw growth, with Vuong pointing to an increase in sales due to changes in market demand and competition.
“There has also been a decrease in expenses in the 2016 year, which has contributed to the increase in gross profit,” Vuong said.
Kilcoy Pastoral Company, meanwhile, had a change in an accounting standard, which means its most recent figures are for the full financial year compared to just a half year of previous revenues.
MORE COVERAGE:
Australia's Top 100 Food & Drink Companies 2017
The top 10 companies in focus
This year's fastest movers
Australia's 2017 Top 100: The big trends
Dairy processors find traction
See the full 2017 Top 100 report>>
Editorial by Food & Drink Business. All data sourced from IBISWorld.
