Sep 27, 2022

Share Cattle producer AACo has opted to appoint a new chief executive and managing director from within its own ranks just weeks after UK billionaire Joe Lewis increased his stake in the company to more than 50 per cent. AACo said on Tuesday that David Harris would take the reins at the company, which owns almost 1 per cent of Australia’s land mass and runs about 380,000 cattle. Mr Harris has been keeping the saddle warm as chief executive and managing director since the sudden departure of Hugh Killen in June. It has been a rough few months for AACo with the spectre of foot and mouth disease and lumpy skin disease hanging over the cattle industry after outbreaks in Indonesia. The AACo share price has fallen from a 14-year high in the days after Mr Killen departed effective immediately on June 21 to $1.73 on Tuesday. Advertisement It is understood the Forrest camp was less than impressed when 48 per cent shareholder Tavistock, Mr Lewis’s investment vehicle, was allowed to increase that stake to 50.7 per cent earlier this month when it snapped up a parcel of 5.85 million shares. AACo chairman Donald McGauchie said Mr Harris had impressed the board with his performance as acting CEO and, after reviewing other candidates, came to a unanimous view he was the best person to lead the company. “David has demonstrated his understanding of the importance of optimising and making value chains more efficient and sustainable,” Mr McGauchie said. “He is experienced in the development and implementation of strategies and business plans focused on achieving improved profitability, efficiency and value creation in new products.” Mr Harris joined AACo in 2016 and was appointed chief operating officer in 2020 as the company continued a strategy to sell its packaged beef brands to global markets. AACo posted a statutory profit jump to $136.9 million for the 12 months to March, up from $45.5 million in the previous corresponding period. The results include an unrealised $129.6 million gain on the value of its herd that was tempered by higher costs for grain and fuel. Brad Thompson writes across business and politics from Western Australia for The Australian Financial Review. Brad is based in our Perth bureau. Connect with Brad on Twitter . Email Brad at brad.thompson@afr.com Save