Eastern Deer has $58,000 profit after $460,000 loss

Press, 24 February 1987, Page 26

Eastern Deer has $58,000 profit after $460,000 loss

PA Wellington Eastern Deer Corp, Ltd, has reported an after-tax profit of $58,000 ($460,000 loss) on turnover of $549,000 ($474,000) for the six months ending November 30, 1986. For the previous year the directors reported a loss of $2,064,000 as a consequence of the writedown in livestock values and the retention of saleable progeny. Since the half year the company has completed the sale of revenue livestock to the AMP Corporation, entered into a joint venture with a major exporter for the supply and marketing of venison stags, and completed the purchase of an adjoining , property, Eastern Deer said in a statement to the Stock Exchange. The directors consider this 300 hectare property to have significant horticultural potential. The company’s management was pursuing other initiatives which it is believed will enhance the profitability of the rural resource based company. While the deer industry

qjptinues to

some short-term volatility in live and slaughter prices, the directors were confident of the industry’s future following the determination of the treatment of livestock values for tax purposes. A number of substantial new farmers were entering the industry confident of achieving sound returns on the new reduced livestock values.

Eastern Deer has completed an unconditional agreement to supply the AMP Society with 1050 red deer hinds for a total consideration of $1,612,500.

The sale stock consists of 500 yearling sold for $lB5O a head average price and 550 1987 weaner sold for $1250 a head average price. The deal went through on February 18 and the full consideration will accrue to the company’s 1987 revenues. The 500 yearlings' sold are progeny retained from not selling in the 1986 year when considerable uncertainty existed in the market The acquisitions represent part of a total of 1500

hinds, acquired by the AMP'Society as the initial herd numbers for its joint venture deer fanning operations, the management of which will be conducted under the auspices of the company’s managing director and farm manager, Mr Peter J. Robuck and Mr Frank C. Addis.

The company has also entered into a joint ven-

ture agreement with a major exporter for the supply and marketing of 750 stags retained from the 1986 year.

These stags will be slaughtered in the August to November period to satisfy the strong market demand experienced at that time when premium prices prevail, the company said.