Australia's largest beef producer, Australian Agricultural Company, has bought a new cattle station and handed back barrister Allan Myers' Tipperary Station as it expands operations and declares increased earnings for the half-year. 
As the national cattle herd shrinks and the cost of cattle hits record highs, major producers are desperately trying to position themselves to secure future supply. AACo's managing director Jason Strong said the company's "transformation" program, which seeks to change it from a straight producer into a vertically integrated operator, was working.
"We believe that the transformation is very much now completed and [we are] now moving toward the implementation of a branding strategy and capturing as much margin as we possibly can out of every animal."
Operating earnings before interest, tax, depreciation and amortisation for the first half would be between $8 million and $12 million, compared to an $8.4 million operating loss in the previous corresponding period.
With higher cattle prices, AACo has increased the value of its herd, which will see statutory EBITDA for the half in the $90 million-$100 million range compared to a loss of $4.5 million in the previous corresponding period.
Mr Strong said the company's Livingstone Beef abattoir at Darwin would maintain strong cattle numbers. It broke through the 350-head-per-day throughput needed to break even in   August, and by   September was tracking close to 400 head per day.
The company confirmed it had also contracted to buy the 46,800-hectare Thorner Station in Queensland for $4.1 million.
The company did not renew its agistment agreement on Allan Myers' million-acre Tipperary Station, which is currently on the market.