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ER Green stressed for some time
18 Aug 2005
West Australian beef processor EG Green & Sons was believed to have traded at a loss for the past four years before suspending operations "for a period of two weeks" at the end of last week. The two big stock agents, Elders and AWB Landmark, and other trade creditors are also believed to be owed between $5 and $10 million. The stock agents are believed to have triggered the suspension of trading, after becoming increasingly worried about the company's poor cash flow and their rising exposure. The company has been stressed for quite some time. Its margins have been squeezed by increased buying prices and soft selling prices, particularly in export markets which accounted for 70 per cent of its sales. It has also been affected by the trend towards live sale of export cattle, which made it harder to maintain throughput at its abattoir.
WA Business News, 18/08/05
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