Meat Processor Suffers Loss07 November 2012
AUSTRALIA- Meat processor WAMMCO Co-operative has suffered a loss of $885,000 loss this year.
WAMMCO has told 1830 shareholders, Western Australian farmers, they won't get a rebate this year, reports ABC rural .
The Co-op has two export focussed abattoirs, at Katanning in WA and Goulburn, in NSW.
The chairman of WAMMCO directors, Dawson Bradford says the company managed to avert more serious losses by targeting their export markets better.
He says they could have suffered $4 to $5 million losses.
There's is a pessimism about the live export sector which is keeping prices lower in the saleyards.
Western Australian producers will also be competing with a Spring flush of lambs from the eastern states which will soften prices further.
"Lamb supply could become short later in the year (in WA), where in the eastern states lamb supply will be abundant for the whole year.
"We could get caught in the situation, where the east and New Zealand could have lamb at a much lower price but trying to sell into the same market as we are. "
WAMMCo as a co-operative "has to process lambs for its shareholders, whereas others can process whatever's most profitable."
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