Australian Agricultural Company Limited (AACo) confirms flooding in north-western Queensland has affected three properties and 55,000 cattle, with financial repercussions expected for the 2026 fiscal year.
- Flooding impacts three of AACo’s 27 properties in north-west Queensland
- Approximately 55,000 head of cattle affected, significantly fewer than 2019 floods
- Full damage assessment and financial impact remain uncertain but likely material
- AACo prioritises safety of staff, animal welfare, and community support
- Other regions remain favourable, enabling continued supply commitments
Floods Disrupt Key AACo Properties
The Australian Agricultural Company Limited (AACo), one of Australia’s largest cattle producers, has reported significant flooding across three of its properties in north-western Queensland. The affected sites, Carrum, Dalgonally, and Canobie, are home to approximately 55,000 head of cattle, representing a substantial portion of the company’s overall herd of 456,000.
While the flooding is a serious event, AACo emphasises that the number of cattle impacted is considerably lower than during the 2019 flood event in the same region. However, management cautions against direct comparisons due to differences in cattle valuations, operational practices, and seasonal weather variations.
Focus on Safety and Ongoing Management
In its announcement, AACo stressed that the immediate priority remains the safety and welfare of its people and animals. Staff and their families on the affected properties are reported safe, and the company is actively managing the evolving situation in real time. Given the unpredictable nature of the wet season, there remains a risk of further adverse weather impacts.
Despite the challenges, AACo’s properties in south-western Queensland and the Northern Territory continue to experience favourable rainfall, allowing the company to maintain its supply commitments to key markets. This geographic diversity provides some operational resilience amid localized disruptions.
Financial Impact and Risk Considerations
AACo does not carry insurance for flooding events on its herd or infrastructure, citing prohibitive costs. This exposes the company to direct financial risk from natural disasters. While the full extent of damage to livestock and infrastructure is still being assessed, the company acknowledges that the flooding’s impact on its earnings for the March 2026 financial year is likely to be material.
The company’s balance sheet remains strong, providing some buffer as management continues to evaluate the situation. Investors will be watching closely for further updates as AACo completes its damage assessments and refines its financial outlook.
Looking Ahead
As AACo navigates this challenging period, the broader agricultural sector is reminded of the ongoing risks posed by extreme weather events. The company’s response underscores the importance of operational flexibility and community support in times of crisis. Future updates will be critical to understanding the full ramifications of the floods on AACo’s operations and financial health.
Bottom Line?
AACo’s flood-hit properties signal a tough year ahead, with financial impacts still unfolding.
Questions in the middle?
- What will be the final financial cost of the flooding on AACo’s 2026 earnings?
- How will AACo adjust its risk management strategy given the lack of flood insurance?
- Could further wet season events exacerbate the current damage and operational disruption?