ANZCO Foods has bucked the industry trend and reported a full-year net profit of $44.4 million after tax for the year ending in December 2023.
Although it's down $106.6 million from the previous year CEO Peter Conley is proud of how ANZCO navigated a tumultuous year marked by rising costs and challenges such as the Mycoplasma bovis outbreak and the fluctuations in the Chinese market.
"Certainly, in the history of ANZCO, we'd never seen a year like that," Conley stated, adding that "2023 has been a tough year... Plenty of volatility in global markets."
He also addresses the hardships faced by sheep farmers, acknowledging the escalation in costs they have endured. Conley underscores the significance of ANZCO Foods' 40-year history, noting that "the last three years have been our best-ever performing years."
Conley highlighted the strategic move of opening an ANZCO office in China, expressing optimism for the long-term prospects despite the market's current challenges.
"China will come back. It will bounce back," he says and elaborates on how the Chinese market had misjudged the market recovery, leading to belt-tightening among consumers post-lockdown.
The CEO underscores the importance of the Chinese market for value addition and the export of lower-cost food products, hinting at a positive shift in consumer behaviour and market trends that may signal a brighter future for businesses with stakes in China.
The discussion also touches on the five-star beef feedlot's depopulation and repopulation in response to Mycoplasma bovis, a significant operational challenge that ANZCO Foods managed closely with the Ministry for Primary Industries.
Despite the impact on revenue and costs, Conley is proud of the project's execution.
"It was at least three years in planning... We worked very, very closely with MPI and they supported us through it."
Looking ahead, Conley mentions that ANZCO Foods will continue to invest in improving business operations, though no major projects were slated for 2024.
He ends on an empathetic note towards farmers experiencing tough times, expressing his belief that the markets are turning a corner with "green shoots" appearing in more mature and traditional markets.
Overall, the conversation paints a picture of resilience and strategic foresight in the face of industry upheaval, with Conley's leadership at ANZCO Foods serving as a testament to the potential for success against the odds.
Listen to the full chat between Peter Conley and Dominic George above.
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