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ESP
ITA
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Highlights
- In the last 20 years, the gross value of Australia’s agriculture production sector has increased by 7%.
- Australia exports nearly 72% of the total value of agricultural, fisheries and forestry production.
- The gross value of agricultural production is projected to be AU$80.4 billion in 2022–23, a 3% decline from the record AU$83.1 billion of 2021–22
When it comes to the agricultural, fisheries and forestry sector, Australia is well endowed and produces a wide array of crop and livestock products. In the last 20 years, the gross value of this sector has increased by 7% from about AU$70 billion in 2001–02 to AU$75 billion in 2020–21.
The country exports nearly 72% of the total value of agricultural, fisheries and forestry production, with wheat and beef being large sectors and more focused on export than dairy, horticulture, and pork.
The gross value of agricultural production is projected to be AU$80.4 billion in 2022–23, dropping by 3% from the record AU$83.1 billion of 2021–22. Exceptionally high grain prices are also anticipated due to successive poor seasons faced by major overseas producers and the effects of the Russian invasion of Ukraine.
This article will discuss three ASX food stocks that have provided decent price returns on a year-to-date basis.
Do read: What's the buzz around a new agriculture index in Australia?
Data source: Refinitiv as of 16 June 2022
Australian Agricultural Company Limited (ASX: AAC)
Australian Agricultural Company is the largest integrated cattle and beef producer in Australia. It has more than 6.4 million hectares of land in Queensland and the Northern Territory. The company specialises in grain-fed beef and Wagyu beef production.
Major highlights of the company in FY22 are as below:
Graincorp Limited (ASX: GNC)
Graincorp is a major agribusiness and processing company in Australia. It has been collaborating with growers and producers for over 100 years to connect them with domestic and international customers.
In the half-year ended 31 March 2022, Graincorp delivered a record performance with nearly 205% spike in earnings before interest, taxes, depreciation, amortisation (EBITDA) and about 382% surge in NPAT.
The company has also launched a AU$30 million corporate venture capital fund, ‘GrainCorp Ventures’ to invest in AgTech start-ups.
Guidance for FY22: Underlying EBITDA AU$590- AU$670 million. Underlying NPAT AU$310-AU$370 million
Ridley Corporation Limited (ASX: RIC)
Ridley is the largest commercial provider of high-performance animal nutrition solutions. The company has 20 sites across Australia and produces nearly 2.0 million tonnes of finished feeds and feed ingredients grown from cereal grains. Its major brands include Barastoc, Primo, Cobber and Rumevite.
Let us have a look at the company’s highlights for the period ended 31 December 2021
Also read: ELD, CGC, SHV: Look at the performance of these 3 ASX food stocks
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Aditi Sarkar - Healthcare Analyst (Biotechnology)401 PostsAditi covers content focused on healthcare and food & beverages sectors. She has a post-graduate degree in Genetics and Plant Breeding with Biotechnology as her minor subject. She has two co-authored scientific research publications in peer-reviewed ...
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Supriya Kumari - Research Editor2 PostsSupriya is a Research Editor at Kalkine. She comes with a rich experience of 11 years in online journalism. She has worked for leading media brands like Zee News & MSN Australia, specialising in world affairs. She is a Bachelor of Science (Honours) g...
