Australian Agricultural Company Limited

Good morning, and welcome to the Australian Agricultural Company's Year-end Presentation for 2026. My name is Dave Harris, and I'm the Managing Director and CEO of AACo.

And joining me on the call today is our Chief Financial Officer, Glen Steedman. Before we begin, I want to recognize that AACo properties are the traditional homes of many First Nations people.

We acknowledge them and offer our respects to their elders, past and present. We recognize their culture and honor their deep connection to the land, waters, animals and skies, especially across the places we have lived and worked for over 200 years.

As a food and agricultural company, there is much to learn from their approach to community and their knowledge and care for country. Our presentation today will follow the regular format.

I'll start with an overview of AACo, including our FY '26 highlights and the commercial updates. Then I'll hand over to Glen to run through the financial performance in more detail before closing with an update on current market conditions.

And with that, let's begin on Slide 5. AACo is a branded beef business, focused on the production, sale and marketing of high-quality Wagyu to customers around the world.

Our integrated value chain connects land, livestock, brands and customers in a controlled system, allowing us to respond to and build market demand. Our approach combines scientific innovation, modern production practices and a strong commitment to animal welfare and environmental stewardship.

Our value chain is managed by a workforce of around 450 people across the properties, our Brisbane office and in key markets all around the globe. As custodians of 1% of Australia's land mass and operators of one of the largest cattle production systems, we understand our success is underpinned by working with nature.

We take a nature-led approach by utilizing farming practices that aim to balance the needs of cattle, humans and the ecosystems in our care. We have an extraordinary legacy that we're excited to build on as we enter a new chapter of expansion under our strategic focus areas, which I'll share more on as we turn to Slide 6.

At AACo, our purpose is to reimagine Australian agriculture to share with the world. It continues to guide us as we make progress towards our strategy, which underpins how we build future growth and create long-term value for shareholders.

That plan is centered on 3 key focus areas: better beef, unlocking the value of the land and partner and invest. Better beef focuses on creating beef that commands premium prices, demand and trust, increasing high-quality supply and supporting sustained increases in revenue, margin and brand equity.

Unlocking the value of the land enables us to develop diverse and more sustainable use cases for our properties, opening additional revenue streams and improving environmental outcomes. Under partner and invest, we're advancing agricultural innovation and knowledge through collaboration, helping to strengthen our operations and contribute to progress across the industry.

Executing on these strategic pathways will enable us to deliver our long-term vision of being the leading food and agricultural company, delivering nature-led solutions at scale. Just as importantly, how we deliver on the strategy matters.

Our values at AACo of be curious, be generous and own your impact help shape the culture we need to bring these ambitions to life and to bring out the best in our people and our business. As we progress on the execution of our strategy, we remain focused on growing value, profitability and improving cash generation to enhance flexibility in the medium to long term.

As we turn to Slide 7, I want to share how proud I am to lead AACo in what was a record year with significant challenges. We're focused on executing our strategy to deliver sustained growth.

How we manage our assets now and into the future matters even more as we continue to navigate increasingly uncertain market and environmental conditions. Through our operational activity, we're working to enhance land condition and business resilience over time whilst generating improved financial returns.

We saw the value of that resilience during the year when our Gulf of Carpenteria properties faced another extremely unfortunate flooding event, which sadly caused losses. As previously disclosed to the ASX, we estimate 7,000 head of cattle were lost in this event.

Past investments in our sustainable stocking model, flood refuge banks, infrastructure improvements and flood management plans meant that we were better prepared. Our animals, land and infrastructure came through in much better condition than they did after the 2019 flood in the same region.

And as you'll see shortly, FY '26 operating profit is our strongest yet even after the financial impact of that flood. It's an outcome that speaks to the resilience and capability of our team and reflects how our people respond to challenges, taking care in what they do and working together as one , AACo to deliver such a strong result.

That experience, knowledge and drive represent our values in action and underpin the momentum we're seeing as we execute our strategy, which I'll turn to now on Slide 8. This year, we achieved our highest operating profit while making progress towards our strategic focus areas to position our supply chain for future growth.

Our total revenue for FY '26 is $422.1 million, an increase of 9% versus the prior year. This improvement was driven by higher prices and strong execution across both beef and cattle sales, allowing us to capture opportunities throughout the year, particularly notable given volumes remained steady.

Our global approach to brands and continued investment in relationships and distribution has helped translate that into stronger beef sales. Our operating profit of $71.6 million is our strongest full year result since the measure was introduced in 2019 and remains the clearest view of earnings generated by the business because it excludes items outside management's control, such as herd valuations.

This record result was driven by our sales execution and disciplined cost management with margin improvement outpacing revenue growth. It's an example of how we're better utilizing our assets to generate returns and how our teams continue to build efficiencies into the business that add to our bottom line.

Our positive core free cash flow shows the underlying cash generation of the business, excluding in-year strategic investments. This improved $11.4 million on the prior period, demonstrating that the progress we've made to date is starting to pay off.

That progress is also reflected in our net tangible asset position, which strengthened over the year. Given the nature of our supply chain, much of the capital we deploy is intended to support steady long-term growth that comes through over time.

That's certainly the case for the work progressed under Better Beef this year, which is focused on improving supply, quality and consistency of our branded beef. Our genetics program is accelerating herd improvement and bringing forward commercial benefits in a material way.

This is being driven by what we believe to be the largest embryo transfer program for cattle carried out in Australia over the past year by improving genetic testing and by live animal assessments to optimize feeding pathways. Over time, this will increase the number of animals that are better suited to AACo's premium brands and high-paying markets.

To support that growth in supply, we have also invested in finishing capacity to improve scalability. At Goonoo Emerald in Central Queensland, we've added an additional 10% production capacity, supporting the consistent year-round supply that underpins AACo's branded Wagyu Beef sales.

Another priority under the Better Beef focus area has been our work through the zero net emissions Ag CRC. We're working with industry partners to develop commercially viable ways to reduce emissions intensity.

Progress in this area is important and takes time as we look to reduce our impact on nature while exploring new revenue opportunities. Under unlocking the value of the land, we've reached an important milestone in our landscape carbon project at Glentana Station in Central Queensland.

The project is now registered with the clean energy regulator and is eligible for ACCUs with the first credits expected in coming years. These projects are designed to support our existing cattle production operations and are expected to improve productivity and enhance land quality.

It's another example of how aligning with natural systems can deliver better outcomes whilst also supporting financial returns. This year, we achieved Accounting for Nature certification.

The scores and framework will now be used internally to measure and inform AACo's science-based nature-led approach and track improvements in the ecosystem condition of our properties. We've also continued to build sophisticated decision intelligence through our landscape segmentation system designed to optimize long-term land use across our portfolio.

Innovation and insight are also being applied through Partner and Invest. As part of this focus area, AACo is pleased to announce an investment in Sorensis, which is developing a nonsurgical long-term contraceptive implant for female cattle.

The technology is expected to improve animal welfare, beef productivity and operational efficiency whilst lowering costs, and we're looking forward to collaborating with Sorensis further on this. Our investment in Athian announced at the half year is also showing potential.

AACo is working with Athian as they develop beef-specific methodologies for emissions reduction pathways that are both credible and commercially scalable for broader industry adoption. Several other partner invest opportunities are also under assessment as potential future sources of Wagyu for our operations and the broader industry.

Taken together, our results and progress towards our plan reflect positive momentum, and we intend to keep building on that in the year ahead. AACo's strong relationships and global distribution network continue to support our commercial delivery across the business.

I'll share more about that now as we turn to Slide 10. Our global approach to brands and markets delivered positive outcomes in 2026.

We achieved an 8% increase in average prices while maintaining volumes, reflecting strong execution across our portfolio and disciplined management of market mix. The period wasn't without headwinds, including import tariff changes in the U.S.

and China, along with supply chain and market disruptions linked to the Middle East conflict. Even so, demand remains strong in the U.S., Asia and Australia, helping underpin pricing.

The result shows deliberate investment behind our brands through expansion into new regions, improved routes to market and increased marketing activity, such as strategic partnerships with Chef Advocates. That investment helped us respond quickly to challenges and capture opportunities as conditions improved in certain regions.

With total beef sales of $314.4 million, up $20.5 million on the prior period, we know our brand-led strategy is working. Let's take a closer look at how each brand contributed to that result as we turn to Slide 11.

Westholme is our flagship premium brand for nature-led Australian Wagyu. With continued momentum across priority markets during the year.

In North America, we expanded distribution and our customer base with demand remaining resilient despite ongoing trade uncertainty. Brand growth has been deliberate, entering Mexico City and Hawaii in response to clear demand signals supported by targeted investments and trade engagement.

To strengthen brand authority and drive demand, we launched a global Chef Advocate program across key markets and implemented brand health tracking to build measurable equity over time. Our Pure and Forage programs are also deepening top-end penetration in markets, including U.S., U.K.

and Europe, reinforcing Westholme's premium position. Turning to Slide 12.

Darling Downs continues to play a key role in our brand portfolio, supplying high-quality Wagyu into retail channels across Asia and Australia. In Korea, continued investment in building demand is delivering results with brand awareness up and more effective in-store promotions driving record conversion rates.

We also held our first consumer tasting and sensory event during FY '26, generating strong media coverage and engagement with insights informing future brand activity and investment. Across Asia, we expanded our reach by strengthening our presence in Hong Kong and Thailand and establishing new customers in Indonesia.

In Australia, Darling Downs continued to grow its premium retail footprint with products now available in 13 Harris Farm locations. Supported by strong local relationships and targeted brand investment, we're seeing growing demand and value across our priority markets.

Moving on to Slide 13. Our 1824 brand reflects AACo's 200-year history and is well established in mainstream food service and butcher channels.

It targets customers seeking high-quality Australian beef at a more accessible price point, allowing it to play a complementary role in the portfolio without compromising other pricing opportunities. During the year, 1824 continued to grow branded sales, strengthening the brand and supporting overall returns.

Demand remains strong in Australia, and we're also seeing positive early results from our expansion into the U.K. and Middle East.

Taken together, the performance of our 3 brands shows the strength and breadth of our portfolio. And with that, I'll now hand over to Glen to take you through our financial performance in more detail.

Thank you, Dave, and good morning, everyone. It's a pleasure to be with you here today and share our financial performance for 2026.

As shown by the highlights on Slide 14, we have built on our first half result to deliver an excellent full year outcome. Operating profit, beef sales price and core free cash flow are some of the primary financial measures we use to monitor the business given they exclude unrealized market valuation fluctuations.

Our operating profit of $71.6 million is up 23% on the prior year and is the highest result achieved since this measure was introduced. This was driven by strong beef and cattle sales performance.

Average prices were higher for both beef and cattle sales while maintaining volumes, reflecting our ability to maximize the value of our assets. The 8% improvement in average sales price for our Wagyu beef was achieved through demand-building activities and optimized global market distribution, capitalizing on opportunities across our brand portfolio.

Core free cash flow is a primary metric we use to determine how we are performing as a business. This represents free cash flow less in-year strategic investments as we reinvest to deliver on our priority areas.

As shared with you in the first half, we believe this is an important measure as it highlights the underlying cash performance of the business and provides transparency on strategic investments made throughout the period. This year, we achieved a core free cash flow of $0.8 million, which was an improvement of $11.4 million on the prior year, and I'll share more on that shortly.

Our statutory result after tax of $107.3 million was a significant increase on the prior year, driven by the $128.6 million unrealized fair value gain on our livestock. While fluctuations in the mark-to-market of the herd are largely unrealized and out of our control, we were able to capture market opportunities through the timing of our live cattle sales during this period, with higher sales revenue also contributing favorably to our statutory performance.

Net tangible assets are now $1.8 billion or $2.92 per share, up 15% on the prior year, which was a result of our improved livestock and property values. Cost control and supply chain efficiencies resulted in a stable cost of production, which is particularly notable given the high inflationary environment.

It's an area we'll be managing closely as the ongoing Middle East conflict has ramifications across our supply chain into the next financial year. I'll now take you through the drivers of our performance in more detail as we walk through our profit and loss, balance sheet and cash flow.

Turning to Slide 15. As Dave mentioned earlier, through our FY '26 activities, we have delivered total sales revenue of $422.1 million, representing a 9% increase on the prior year.

This uplift was driven by strong results across both beef and cattle sales and disciplined sales execution and strong demand improving pricing outcomes. At the core of our business is our Wagyu beef operations.

Revenue was up 7% with an average sales price 8% higher, while volumes were broadly maintained, reflecting our ability to optimize product allocation across global markets and strengthen brand positioning. Our approach to markets underpinned by our global distribution network and in-market teams is key to our success.

By having a diverse global footprint and portfolio of brands, our commercial team allocate product in a way that supports demand and maximizes returns. We've continued to see this play out in 2026, and it's something we are building on through our Better Beef focus area.

Cattle sales also contributed positively to the year's performance, with prices up 17% as we adapted timing to capture market demand while streamlining our operational activities. This translated into a gross operating margin of $146.7 million, up significantly on the prior year, reflecting both price realization and disciplined cost execution across our operations.

Our underlying operating profit for the year, where we have adjusted for the impact of the North Queensland flood event was $80.6 million. However, even after including the floods, our operating profit of $71.6 million is our strongest yet and one we are very proud of.

It shows the resilience of the company as our initiatives create pathways for top and bottom line improvements. Now turning to Slide 16.

Our cash flow for the year tells a story of our strong sales results with reinvestment back into the business to progress our strategy. As mentioned earlier, core free cash flow is an important measure we track, highlighting the underlying cash performance of the business if strategic investments did not occur in that period.

We were encouraged by the improved result of $0.8 million, an increase of $11.4 million on the prior period. This remains a primary focus as our activities target growing cash generation, profitability and asset values.

In line with our strategy, we have continued very intentionally to reinvest into key growth initiatives, including enhancing our herd genetic profile, expansion of finishing capacity at Goonoo, development of the Glentana soil carbon project and targeting investments in innovation and partnerships. These investments have been supported by funding under our refinanced debt facilities as well as improved business performance.

Together, these initiatives show tangible progress across our priority areas. Moving to Slide 17.

Our balance sheet continues to strengthen, underpinned by our world-class assets. Livestock improved in value by $178.3 million, primarily due to the $128.6 million unrealized fair value gain of the herd.

Whilst this was largely due to improved values from market conditions, through this year's appraisal process, we also received positive feedback about the quality of our animals. The herd grew by 6% or nearly 30,000 to 482,000 head, even after taking into account the estimated losses from the North Queensland floods.

This result reflects the work of our operation team and ongoing improvements in breeding and herd management. Our pastoral property values also went up materially in FY '26 with $153 million increase reflecting market value improvements from our investment in intensive supply chain capacity and the high quality of these assets.

As Dave mentioned earlier, previous infrastructure upgrades paid off during the period with minimal damage from the flood event. As with 2019, we'll use this weather event to further inform future capital expansion across our property portfolio and build in additional resilience for our operations.

Future investment is supported by our club debt facility, which continues to fund our key priorities and strengthen the business. With our gearing remaining at the low end of the Board's target range of 20% to 35%, we have the capacity and flexibility to continue executing on our strategy for long-term returns.

We believe this momentum validates the strategic direction taken by the Board and management and thank all of our team members for their contribution through the financial year to these record results. I'll now hand back over to Dave to take you through the outlook for our operating environment and provide closing remarks.

Thanks, Glen. Turning to Slide 18.

I'll step through the operating environment and the key factors we're watching as we move into FY '27. On supply chain resilience, our operating model has again been tested by extreme weather, and we've seen the benefit of years of preparation and investments made over the recent years.

While there will be some minor ongoing impacts from the North Queensland flood, our properties are in a strong position to continue supporting future high-quality Wagyu production. We're continuing targeted work across our intensive operations to enable scalable growth and deliver on better beef, lifting the quality, quantity and consistency through the system.

On the demand side, our approach remains very deliberate. We're using data-driven brand and market insights to guide where we focus across priority markets, channels and commercial relationships with a clear emphasis on maximizing returns over time.

In terms of global conditions, we expect beef demand to remain strong, even with ongoing geopolitical tensions and tariffs in some regions. The advantage for AACo is our diversified global platform and agile distribution network, which helps us manage volatility and direct product to the markets where it can generate the strongest returns.

We are also closely monitoring the conflict in the Middle East, particularly the flowing impacts on direct and indirect costs across energy, freight, transport and production inputs. We're actively managing fuel reserves and working with our partners across the supply chain to mitigate these pressures where we can.

And finally, on regulation and market access, we are well advanced in our preparation for the EUDR, EPBC and mandatory climate reporting. As we look ahead, our priorities are really clear to protect resilience, maintain cost discipline, execute on better beef and continue allocating capital to initiatives that build medium- to long-term value.

And with that, I'll close on Slide 19. I'm extremely proud of how we've responded to the external challenges this period to deliver these what are record outcomes.

Strong results like this can only be achieved through hard work and dedication. It's a testament to the important role each person across the business plays in the success of our operations and to the course we have set ourselves on.

We've made meaningful progress towards our strategy, setting the company up for future sustained growth. We'll move into the next period focused, engaged and extremely confident in what we can achieve.

Thank you to the Board and the team members here at AACo, and thank you for joining us today. That ends today's presentation, and we are now happy to take questions.

There's a question from [ Eric Low ] about a predecessor of mine describing AACo as a world-class grass factory when it rains. And he's wondering if I could comment on that and the impact on current cost of productions.

Thank you very much for the question, Eric. I think my predecessor was accurate in their description.

We've had a really good season in the North this year. There is no doubting that the majority of our properties are in really good shape and actually received well above average rainfalls for the last wet season.

And so that is a really strong and helpful piece for us. Obviously, that drives cow condition, it drives sale weights and more importantly, it drives reproductive rates for future seasons.

So yes, we're extremely pleased with how properties at this point in time are looking. So that will help us significantly in the cost of production, obviously, as that's a factor of costs as well as production.

So we think the current good season will stand us in good stead for the season to come from reproductive rates from fertility. And as I said in today's presentation, we're remaining really disciplined from a cost perspective and spend perspective.

So I'm really confident that going forward, as we continue to improve production, improve cost management practices that we'll be able to keep cost of production in line there.

The second part of that question related to the spike in diesel prices. So we've converted about 215 of our bores to solar bores over the past few years, which has obviously taken away our reliance on diesel.

In addition to that, we are exposed to the normal spike in road transport and other areas of business, which we're monitoring very closely and looking to refine our use as much as possible.

Thanks for that question, Lachlan. Yes, it is our first sequestration project that we've registered with the clean energy regulator.

So it will generate ACCUs under that scheme. The main focus there is increasing carbon sequestration through soil and obviously, regenerative farming practices.

At this point in time, we don't give guidance as to what we believe that project will deliver in the future, but it's obviously over a 25-year period, and there are no ACCUs issued today as we only registered it over the past 12 months. So that will certainly play an integral role going forward, but a couple of years ahead of us yet before ACCUs issued on that one.

Thanks for the question again. Yes, look, from a Livingstone perspective, there's not a specific update I can provide today outside, we continue to see strategic value of that property.

And so we're still reviewing what opportunities we have to extract that value for that facility. We think it's got a really important role to play for the Northern production system.

So we'll continue to work through that. At this point in time, it's carried on the balance sheet for approximately $36 million, and there's no material change in any of that from prior years at this point in time.

Thanks, Lachlan. There's not current franking credits at this point in time.

There is no franking credits.

Can you hear me okay?

Yes. Go ahead Jonathan.

Just ask 2 questions. One, just first around the breeding program.

I think calving rates, what I can tell are probably the highest they've been, probably even higher than that 2023 season. Trying to understand how much of that is kind of the improved seasonal conditions versus the other stuff you're doing, i.e., how sustainable is that?

And I guess the second question, just around the Goonoo expansion. I see feed reductions weren't really up year-on-year.

I know you're carrying a little bit more at year-end, but it didn't look like it moved much from a year-on-year sense. So does that capacity uplift, is that going to flow into next year's inductions and kind of, I guess, the -- you're in '28 sales program?

Thanks for the questions, Jon. The first one in relation to breeding percentages.

Yes, look, we're really pleased with where those percentages are increasing to over time. They're a factor of multiple things.

Probably we're on the back of what is largely 3 or 4 good seasons in the north, like average to good seasons, like the last season was exceptional. But clearly, the calves that we branded last year were prior to that and conception the year before.

So in general, I think it's fair to say we're on the back of 3 or 4 really good honest seasons that are helping us from a cow body condition conception rate. I would also point to, though, that we've spoken to many times before about our theory around long-term carrying capacity and with the change of strategy and really wanting to think about the front end of the business and delivering branded beef into the market 365 days a year, we have to build our supply chain to be able to consistently deliver that.

And so we did back off some of our carrying capacities on some of those places to really rebuild ecological quality of those stations, but also on the focus of reducing some variable costs and increasing branding percentages there. So I'm really confident that we will continue to keep a really productive herd.

We are also focusing on it really significantly from a genetic perspective. And so you add considerable genetic focus that obviously takes a little while to play out, but has been there for quite some time.

You add good land condition and managing that land appropriately to keep good condition score, good conception rates, good management practices looking after those calves once we receive them and then appropriate stocking levels, I think we're on a good trajectory there, and I'm really pleased with the outcomes to date. So I hope that answers your breeding percentage question.

In relation to the second question on Goonoo expansion, yes, obviously, our feeding programs are kind of circa 300-plus days. And so these things take a little while to flow through.

You will know our livestock balance finished the year at closer to 480,000. So we did have an increase in livestock inventory over the period.

We will -- whilst we don't give guidance, I think it's fair to expect that we'll see continuing increase in volumes coming at the front end in future years. And that is certainly where a lot of the investment is going is, like I said in the presentation, building the supply chain, the value chain in order to be able to bring higher quality, more quantity and more consistency to the front end of the business.

Okay. And look, if I could just do 2 follow-ons, one around costs.

I mean, obviously, these results probably don't show anything, I guess, from Middle East conflict commencement at all. So wheat prices since then are up, diesel is up, how are you seeing the inflation through the first quarter of '27, which you kind of capitalizing into that herd at the moment, I guess, would be one part.

And the second part, on your pricing front, your meat pricing outcome looked like it was well ahead of 90LC. And I know you're going to say you don't benchmark to it, but you tend to correlate to it quite well.

So I'm kind of interested in kind of what's driving that outperformance and how you maybe saw it progress in the fourth quarter versus the third quarter with some of those FX headwinds that would have started to come in?

Yes, sure. There's a bit in that.

So I'll start and if I miss anything, come back. From a cost perspective, yes, you're right.

The Middle East piece only played out right at the tail end of this financial year. But what we are doing right now is our best version of preventing cost creep into the business.

I think there was a question there about solar bores and things like that. So some of those assets like that, that we've converted in time are really trying to reduce our diesel costs.

So that has helped and increase -- sped up the payback on some of those. So yes, we -- at the moment, like we do see probably freight costs up 20% circa since the Middle East conflict.

So that is something we're certainly working through very promptly and managing day-to-day with our customers. Yes, we are seeing -- we carry pretty good position forward hedge positions from an FX perspective, and I can let Glen talk to that, but we also have good forward coverage on a lot of commodities.

I'm moderately positive about our ability to work through the Middle East piece this year, noting I think there's a lot of fluctuation and variability still to come in that. We obviously know the Strait of Hormuz is not open yet.

And so until that happens and we sort of start on that trajectory back to normal, it will be a challenge, but certainly front of mind and focus on that one. So that was from a cost perspective.

Sorry, I might hand over to Glen to talk FX and things like that. And then if we've missed anything, John, come again.

Yes. John, I guess given the uncertainty in geopolitical environment, we've been very active in our hedging space over the past few years.

So over the next 24 months, where we've got the upper end of 60% of our expected international sales hedged, and we've been able to achieve that at a rate of around $0.65. So that puts us in a pretty good position to weather those FX movements as they come over the next couple of years.

So we're really comfortable and happy with that position.

John, I think the other part was your beef prices forward-looking on that piece.

Yes. I was just wondering how it kind of progressed over the quarter.

I mean you guys -- historically, it's usually a pretty tight correlation to 90CL and it looks like you got double 90CL this year in terms of the move in the second half, I'm looking at. And I was kind of trying to figure out how that kind of progressed through the quarter.

I mean, was it mix? Or was it something else?

Or did it get stronger in the fourth quarter versus third? Or was it the other way around?

No, I think it's a fair comment to say the improvement in price came linearly through the year. The back half was certainly a lot stronger than the start.

It was pretty difficult still through the middle of last year. So I'm really pleased with how strongly we finished it.

So far, trajectory looks okay. I think the point -- it's really difficult when you come back to that 90CL piece.

What the strategy is largely around is this global footprint and us being able to move product around the world. And so we do move that between markets depending on local economies.

There's obviously the macro pieces. And so that plays out.

But each individual country, whether it be Korea, whether it be the U.S., whether it be U.K., Europe, each has their own opportunities, challenges, and we do kind of use a bit of a geographical arbitrage there and move product around. And so we're always looking to extract the most amount of revenue and margin from that product throughout the year.

So it does mean that we move things around. So it is hard to track to kind of just a direct export type piece.

But we're pleased with how we've gone. We've got to keep working on it.

But at this point in time, I'm optimistic as to our ability to continue to drive price as long as we continue to increase quality of the product and things like that as well.