Australia's beef producers have modest levels of debt, relatively strong operating profitability and good prospects for the future, according to National Australia Bank agribusiness general manager, Khan Horne.
Releasing the first data from NAB's National Agribusiness Benchmarking Program, Mr Horne said NAB's beef producer clients turning over more than $1 million were earning on average $551,000 in EBIT (earnings before interest and tax) in 2006/2007.
"These larger producers are generating these returns from a relatively comfortable debt-equity position, with the over $1 million revenue group having an average equity position of 71pc," Mr Horne said.
"While averages don't describe the extremes of fantastic performers and businesses that have struggled, overall, Australia's beef industry is in good shape to capture future opportunities."
Mr Horne yesterday departed for South Africa with a delegation of 33 leading Australian beef producers on a three week study tour to examine how beef genetics have advanced in sub-tropical Africa.
"Our Queensland customers are always looking for an edge, and there are many parallels between the genetics and grazing conditions in sub-tropical Africa and northern Australia," Mr Horne said.
Previous NAB Agribusiness beef tours have taken producers to South America.
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