We have now concluded our annual producer business group meetings and analysed the aggregated 2025FY private client data. This overview of the results provides insights into industry performance and further context for your own business performance.
We separate our benchmarking dataset into two main groupings: our private clients (made up of individual businesses and our business groups) and the benchmarking of pastoral companies. The private client group is analysed on a financial year basis, and the data is summarised in this report. The pastoral company benchmarking is analysed primarily on a calendar year. The graph below compares the average EBIT/AE of the two datasets over time (in real terms).
Observations of 2025 private client performance
- Recovery of profitability across the group
- The average return on assets across the group increased from 1.0% in 2024 to 2.5% in 2025. The profitability of the top 25% businesses increased from 2.5% to 3.2%.
- The improvement in profitability was caused by an increase in profit (total EBIT and $/AE) and driven by:
- recovery in beef prices (in 2025FY beef prices averaged the 63th percentile of prices over the last 20years, compared to the 34th percentile in 2024FY).
- a reduction in the cost of production per kg of lightweight produced. The reduced cost of production is the result of a 14% increase in kilograms produced per AE
- Despite the increase in land values (capital return was 4.3% for the year), the average equity reduced to 81%. Finance coverage remains low in 2025, but is greater than 1, at 1.9 times for the group business average, but improved compared to 0.6 times in 2024. The Top 25% businesses' finance coverage stood at 3.7 times in 2025.
- The long-term EBIT/AE of Top 25% enterprises was nearly 2.5 times that of the average. The composition of top performers across all enterprises is reasonably consistent, with three-quarters of the businesses also in the top cohort last year.
Conclusion
The recovery in cattle prices, and seasonal conditions for some, saw improvement in profits across the businesses we analyse. The factors which separate the top performers from the average are consistent with other datasets and other time frames. Generally, the top performers;
- have more productive herds, generate more income per animal unit,
- have better targeted and lower enterprise expenses
- have lower overheads, resulting from better labour efficiency
This reiterates that focusing on these fundamentals will result in the best long-term returns for your business, through the full cycle of seasons, cattle prices and interest rates.
If you would like to receive a full version of this report and better understand how your beef business is performing, including its strengths, areas for improvement, and how it compares to the best in the industry, we invite you to be part of our client base. Explore the full range of products and services available on our website, or get in touch with us directly to discuss how we can support your business.
