AFTER two turbulent years of board room instability at The Australian Agricultural Company (AACo), including five different chairmen in that time, the pressure to deliver a big lift in business performance is weighing heavily on the shoulders of management.
Getting greater value from carcase yield, including the market for offal, and using the market experience of AACo's Dubai-based shareholder IFCO, have become other growth strategies for chief executive David Farley, who joined the company in December.
He was previously best known in Australia for leading the massive growth of Colly Cotton in the 1980s and '90s, before moving to the US to work in the cotton industry and run a farmer co-operative.
AACo interim chairman, Nick Burton Taylor, told last week's AGM the board had great confidence in the new era of management under Mr Farley, his new chief operating officer, Troy Setter and new chief financial officer, Kerrie Parker.
Mr Setter moved from the Elders-owned North Australian Cattle Company in March, where he was responsible for global live cattle exports and international box meat sales and had a strong grounding in Asian markets, while Ms Parker is a former financial head of both Golden Circle and Sara Lee in Australia.
IFCO, the biggest red meat processor in India, holds a 10 per cent stake in AACo and has extensive contacts in the Middle East.
It plans to help open new markets in the region for AACo - Australia's biggest cattle business with a 600,000-strong herd - while fellow 10pc shareholder, the Malaysian-based agribusiness Felda wants to develop its own cattle business alongside its vast palm-oil plantations possibly including lot feeding stock imported from Australia.
Mr Burton Taylor said after emerging from widespread drought and floods in northern Australia in recent seasons, plus a board directorship revamp, there were "no excuses" left for management or directors.
He said last year's global financial insecurity and seasonal setbacks had contributed to a "deplorable" profit performance.
Low cattle prices and the strong dollar had further frustrated management, which had also been distracted by changes at board level.
But now "there's a real sense of optimism in the way the business is performing", he said.
Cattle prices had risen significantly since December, stocking numbers had been increased with the purchase of 45,000 extra head to take advantage of good seasonal conditions on many AACo properties and calving rates were set to be better than last year.
But after declaring a $76 million loss (including write-downs) for 2009 and the company's share price trading at roughly a 42 per cent discount to its net tangible asset backing (and less than half level's of two years ago), Mr Burton Taylor appreciated shareholder concern and disappointment about AACo's 2009 result.
Although reluctant to give any profit guidance for 2010 he said one of the key building blocks to recovery and stability in the company was the appointment of former Telstra chairman and high profile Victorian farmer, Don McGauchie, as yet another chairman for AACo.
Mr McGauchie, currently overseas, starts the new job in July and according to Mr Burton Taylor would bring with him a formidable range of commercial skills, leadership experience and commitment to agriculture's prosperity.
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