THE head of Australia’s largest cattle company says he is still “open minded” about the future of the Livingstone abattoir in the Northern Territory, with speculation that it could soon be sold.

Last year, the Australian Agricultural Company started quietly probing the sale of the asset through Melbourne-based advisory Kidder Williams.

David Harris

Beef Central understands most processors have looked at the site and David Williams from Kidder Williams recently told the ABC that he was expecting it to be sold soon and that it could be operational next year.

In announcing a $39m half year operating profit, AA Co managing director David Harris was asked on the Week in Beef about the future of the abattoir.

“At this stage Livingstone is still in a suspended state, we are working through some different options there,” Mr Harris said.

“I really see an opportunity for the plant to be operating again, we just need to come to the right arrangements for that to happen. But it is a strategic asset for the north, I think it has value to the north and particularly value to the cattle and beef industry in Australia.”

One of the options that has been canvassed has been the possibility of a joint venture between AA Co and another company.

“We have kept the door opened on all options at this stage, we have not been specific on any options and I will keep an open mind at this stage,” Mr Harris said.

The speculation about Livingstone being sold has collided with the final settlement of Western Australia’s Kimberley Meat Company abattoir and Yeeda Pastoral Company to Canadian super-fund Alberta Investment Management Corp (AIMCo).

The Youngwalla Pastoral Company, which operates under AIMCo, said it was expecting the plant to be operational by 2027 – with plans to develop a feedyard alongside it.

Yeeda Pastoral’s land assets are also said to be one of the main attractions to the purchase from AIMCo.

There is a feeling that the best chance of the northern abattoirs making money would be if they were operating now.

US 90CL prices are currently trading at $11.74, which is at record highs.

As was discussed on this recent episode of the Week in Beef, the issue will be how long it takes to bring the plants back on line and whether this current market opportunity will still be there.