STRATEGIC PRIORITIES
Data
Growth & Marketing Legacy Projects
Members
ACTIONS
A focus on Meat Standards
Australia (MSA) - data for analysis
Improved accuracies in BREEDPLAN
Field days and information sessions for members in conjunction with BIN & Repronomics Projects
Support and facilitate the inclusion of additional data and information in sale catalogues
Commercial CompetitionsFeedlot & Carcass
Economic data to validate costs of production comparative to other breeds.
OPERATING OUTCOMES
MSA data to improve meat quality, enhance consumer
confidence, market access and di erentiation, higher producer returns and strengthen breed reputation
Grow BREEDPLAN participation across the membership
Continuation of both BIN & Repronomics Projects
Utilisation of data to improve confidence for stud & commercial buyers.
ACTIONS
Promote Droughtmaster beef/ca le using data and analysis from MSA and Feedlots
Promote the Droughtmaster female as the cornerstone in any beef producer's herd
Promote the natural and sustainable characteristics of the breed
Create further strategic partnerships
Expand our marketing with a greater geographical footprint
Testimonials and case studies
Create new concepts to promote bull and female sales.
OPERATING OUTCOMES
Growth in female registrations
Membership growth
Droughtmaster ca le occupying a larger geographical footprint
Increased demand for Droughtmaster Bulls and Females
Greater awareness of the quality and demand for Droughtmaster beef.
ACTIONS
Increased commitment to school agricultural programs and provide content for their curriculums
Creation of learning modules for new members relating to sale preparation, showing, and general animal husbandry
Educational content available for members and support younger members participating in workshops, conferences and field days.
OPERATING OUTCOMES
Greater involvement by schools using Droughtmaster ca le in their curriculum and at the Futurity
Members equipped with educational content to assist with improvements to their businesses
Growth in Next Gen.
ACTIONS
Commission a study to analyse the unit costs of production for Droughtmaster ca le comparative to other breeds
Create stronger relationships with countries using Droughtmaster genetics to help grow the breed internationally
Sta training & development
Source R&D funding
Alternative income streams
Business model improvements.
OPERATING OUTCOMES
A be er understanding of the economics relating to Droughtmaster beef production comparative to other breeds
Skilled sta
Additional Income Streams
Growth and awareness of Droughtmaster genetics internationally
E iciency in operations.
ACTIONS
Celebrate our people
Heighten the appeal of being a member
Regular and e icient communication
Adopt Modern Communication Strategies.
OPERATING OUTCOMES
Member retention and improvements in value to members
Member satisfaction.
SOCIETY HIGHLIGHTS
PRESIDENT’S REPORT
IT IS MY PRIVILEGE TO PRESENT the President’s Report for the 2025–26 financial year.
As I reflect on the past twelve months, I am reminded that while annual reports often focus on numbers and achievements, our Society ultimately exists to serve cattle producers. The success of Droughtmaster Australia is measured not only by registrations, sale averages or financial results, but by the confidence our members have in the breed and its ability to deliver profitable outcomes in the paddock.
The year has presented a mixed operating environment across much of Australia. Seasonal conditions have varied considerably between regions, input costs remain elevated and producers continue to face uncertainty around input costs, markets and seasonal outlooks. Despite these challenges, confidence in the Droughtmaster breed remains strong and there is growing recognition of the role our
cattle can play in profitable and sustainable beef production systems.
One of the great strengths of the Droughtmaster breed has always been its ability to adapt. Our breed was developed by practical cattlemen seeking solutions to real-world production challenges, and that same commercial focus remains highly relevant today. Fertility, adaptability, temperament, efficiency and market suitability continue to be traits valued by commercial producers, regardless of the season or market cycle.
This year we have seen that confidence reflected in strong demand for Droughtmaster genetics across both seedstock and commercial sectors. Sale results throughout the year were encouraging and demonstrate the value that producers continue to place on quality cattle backed by sound data and proven performance. While record prices naturally attract attention, it is the depth of demand and the continued support from commercial producers that provides the greatest confidence for the future.
Our strategic plan, Data. Growth. Legacy., continues to provide a clear framework for the Society’s activities and priorities.
The importance of quality data and objective measurement continues to grow. Commercial producers are increasingly focused on making informed decisions and our breed must continue to provide the tools that support those decisions. Programs such as the Beef Information Nucleus and Repronomics projects remain important investments in the future of the breed. The information generated through these initiatives strengthens our genetic evaluation systems and helps ensure Droughtmaster breeders remain equipped to meet the changing needs of the beef industry.
Growth remains important, but it is important that growth is built on substance. Pleasingly, we continue to see positive trends in membership, herd inventory and demand for Droughtmaster
Steve Farmer | President
PRESIDENT’S REPORT
PRESIDENT’S REPORT
genetics. More importantly, we are seeing increasing recognition of the breed’s commercial relevance across a wider range of production environments. The growing presence of Droughtmaster beef on the menu in pubs and clubs across Queensland is another positive indicator that the breed’s strengths are being recognised beyond the farm gate.
At the same time, we must never lose sight of our legacy. The Droughtmaster breed enjoys the position it holds today because of the vision, commitment and hard work of those who came before us. This year, the celebration of the 40th Anniversary of the Droughtmaster Futurity provided a timely reminder that investing in young people remains one of the most important investments we can make. The future of our breed will depend not only on the quality of our cattle, but also on the capability and passion of the next generation.
The Board remains focused on ensuring the Society is well governed, financially responsible and positioned to take advantage of future opportunities. I am pleased that the Society recorded a positive financial result during the year and continues to maintain a strong balance sheet. As a member-owned organisation, our responsibility is not simply to generate surpluses, but to invest wisely in activities that strengthen the breed and deliver value to members over the long term.
Looking ahead, planning for Beef Australia 2027 is already underway. Events such as Beef provide an important opportunity to showcase our breed to both domestic and international audiences. Equally important, however, is the ongoing work that occurs between these major events - the work undertaken by breeders in paddocks across Australia every day, continually improving their cattle and promoting the breed through commercial performance.
No President achieves anything alone, and I would like to acknowledge the many people who contribute to the success of Droughtmaster Australia.
(CONTINUED)
(CONTINUED)
I thank our CEO, Simon Gleeson, for his leadership, commitment and professionalism throughout the year. Simon, together with our dedicated office team of Leigh, Carley, Jacinta, Korrina and Kirstie, continue to provide outstanding service to members and support the wide range of activities undertaken by the Society.
I also thank my fellow Directors, our committees, volunteers and Company Secretary Michele Galagher for their guidance, expertise and willingness to contribute their time for the benefit of the breed.
Most importantly, I thank our members. Whether you operate a large seedstock enterprise, a commercial breeding herd or are just beginning your journey with Droughtmasters, your support and involvement are what make this Society strong. Every registration, sale, field day, committee meeting and conversation about the breed contributes to our collective success.
The Droughtmaster breed was founded on practicality, resilience and a willingness to embrace innovation while remaining grounded in commercial reality. Those values continue to guide us today.
While challenges will undoubtedly arise, I remain optimistic about the future. The breed is well positioned, the Society is financially sound, and most importantly, we have a membership that remains passionate about building a stronger future for Droughtmasters.
Thank you for the opportunity to serve as your President.
Steve Farmer, President on behalf of the Board of Directors
CEO’s REPORT
Simon Gleeson | Chief Executive Officer
THE 2025–26 FINANCIAL YEAR has been one of growth, confidence and momentum for Droughtmaster Australia. Across membership, inventory, sales, breed promotion, research and industry engagement, the Society has continued to strengthen its position as one of Australia’s most commercially relevant and progressive beef breed organisations.
Throughout the year, we have remained focused on delivering value for members while investing in initiatives that will support the long-term success of both the breed and the Society. Pleasingly, these efforts have been reflected in strong sale results, increasing member engagement, growing demand for Droughtmaster genetics and a return to profitability.
As always, the achievements outlined in this report are the result of the dedication and commitment of our members, volunteers, committees, Board, staff and industry
partners. I thank everyone who has contributed to another successful year for Droughtmaster Australia.
A Year of Strong Commercial Confidence
The 2025 sale season delivered some of the strongest results in the breed’s history and reinforced the growing confidence in Droughtmaster genetics across Australia.
The National Bull Sale was once again a standout event, achieving an average of $16,179 and a top price of $280,000. The sale attracted strong competition from commercial producers and seedstock operations alike and demonstrated the continued demand for high-quality Droughtmaster genetics.
The Roma Bull Sale also delivered encouraging results, recording a new sale record top price of $50,000. Similarly, the National Female Sale achieved a record top price of $52,000, further highlighting the strong demand for elite Droughtmaster females. These outcomes, combined with the performance of numerous private sales conducted throughout the year, reflect the strength of the commercial cattle market and the confidence producers continue to place in the breed.
Demand for quality females also remained strong. The inaugural Vytelle Queen of the Ring concept proved to be a major success, achieving a 100 per cent clearance and generating significant interest from breeders and investors alike. The positive response to the event has created a strong platform for future growth.
Together, these results highlight the growing recognition of the Droughtmaster breed as a productive, adaptable and commercially profitable option for beef producers across a wide range of production systems.
CEO’s REPORT
(CONTINUED)
Growing Our Membership and Breed Footprint
Membership and female inventory continued to trend positively throughout the year, with the Society welcoming new members and recording further growth within the Herdbook.
At year end, Droughtmaster Australia had continued to make progress towards its strategic targets of 750 members and 40,000 registered females. These remain important objectives as we work to strengthen the breed’s influence across both seedstock and commercial sectors.
Growth in membership and inventory is more than a measure of Society performance. It reflects increasing confidence in the breed and creates additional demand for bulls, females, genetic services and breed-related activities. Importantly, it also provides the critical mass required to continue investing in research, marketing and member services.
Promoting Droughtmaster from Paddock to Plate
One of the most pleasing developments during the year has been the continued expansion of Droughtmaster beef promotion initiatives.
Droughtmaster beef is now appearing more frequently on menus across Queensland and New South Wales, from high-end steakhouses to regional pubs and clubs, helping to bring the breed’s story full circle from paddock to plate. This growing visibility in the consumer market reflects years of consistent effort from our breeders, commercial partners and the Society to position Droughtmaster as an all-round performer within the Australian beef industry.
Throughout the year, Droughtmasterbranded beef was showcased through a number of high-profile venues and events, helping to tell the breed’s story beyond the farm gate and creating stronger connections with consumers. These activities included partnerships with restaurants, hotels and industry events that highlighted the eating quality, consistency and commercial performance of Droughtmaster beef.
The Society continued its collaboration with Meat & Livestock Australia and industry partners to analyse MSA performance data and promote the breed’s strong eating quality credentials. This work has been supported by professional video production and marketing campaigns designed to strengthen awareness of Droughtmaster beef throughout the supply chain.
Events such as AgQuip, FarmFest, Ekka, the Allenstown Hotel “What’s Your Beef?” Business Lunch and numerous regional activities also provided valuable opportunities to showcase the breed and engage with producers, consumers and industry stakeholders.
Research, Data and Genetic Improvement
The Society remains firmly committed to investing in research and data-driven genetic improvement.
The Beef Information Nucleus (BIN) and Repronomics projects continue to provide valuable insights into fertility, productivity, carcase performance and commercial profitability. These projects have become a cornerstone of the breed’s long-term improvement strategy and provide members with access to data that would otherwise be difficult to generate at an individual herd level.
CEO’s REPORT
(CONTINUED)
Pleasingly, work continued throughout the year on securing extensions to these important projects, ensuring the breed remains actively involved in some of the most significant tropical beef research programs in Australia.
The Society also continued working closely with MLA, ABRI and industry stakeholders on initiatives aimed at increasing BREEDPLAN adoption, improving data capture and exploring future opportunities such as Commercial EBVs.
In addition, considerable attention was given to member education and industry discussion surrounding Myostatin, ensuring breeders have access to factual information and practical guidance as new technologies continue to emerge.
These investments reinforce the Society’s commitment to ensuring Droughtmaster breeders remain at the forefront of genetic improvement and technological advancement.
Within the BIN Project, the Society had 314 steers on agistment at Warraka in Taroom at year end, with 176 of those animals scheduled for processing early in the new financial year. The ongoing collection of performance, carcase and profitability data from these animals will continue to strengthen the breed’s genetic evaluation systems and provide valuable insights to support future genetic improvement and commercial decision-making.
Building for the Future
While significant progress has been made during the year, considerable effort has also been invested in positioning the Society for future success.
A significant highlight during the year was the successful staging of the 40th Anniversary of the Droughtmaster Futurity.
For four decades, the Futurity has played an important role in developing young people within the beef industry while promoting the Droughtmaster breed to future generations of producers. The milestone event provided an opportunity to celebrate the rich history of the program, recognise the many volunteers and supporters who have contributed to its success, and reaffirm the Society’s commitment to youth development and education.
Planning for Beef Australia 2027 is now well underway, with concept development and strategic planning already commenced. Beef 2027 will provide an important opportunity to showcase the breed to domestic and international audiences and further strengthen the Droughtmaster brand.
The Society also continued to pursue opportunities through the Export Market Development Grant program and international engagement initiatives, supporting efforts to further expand awareness of the breed overseas.
These activities align closely with our strategic plan, Data. Growth. Legacy., which provides a clear framework for the Society’s future direction.
Financial Summary
The Society recorded a surplus of $61,767 for the year, representing a significant improvement on the previous year’s result and reflecting both strong revenue growth and disciplined financial management. Revenue exceeded $2.0 million for the first time, driven by strong activity across core Society services, increased DNA testing, sales-related income and ongoing research ac tivities.
As a member-based not-for-profit organisation, the Society’s objective is not to maximise profits, but rather to generate sufficient surpluses to reinvest in member services, breed promotion, research and the long-term development of the Droughtmaster breed. Pleasingly, the Society’s core operations again delivered a positive result during the year while continuing to invest in a broad range of strategic initiatives.
Recognising the importance of future breed promotion opportunities, the Board also established a dedicated Beef 2027 Reserve of $120,000. This reserve will assist the Society in maximising the significant opportunities presented by Beef Australia 2027 and demonstrates a proactive approach to long-term financial planning.
The Society continues to maintain a strong balance sheet, with total assets of approximately $1.45 million, net assets exceeding $1.14 million and cash reserves increasing during the year. These foundations ensure Droughtmaster Australia remains well positioned to continue investing in member services, research, genetic improvement and breed promotion while maintaining long-term financial sustainability.
Acknowledgements
I would like to sincerely thank our dedicated staff, Leigh, Carley, Jacinta, Korrina and Kirstie, for their professionalism, commitment and enthusiasm throughout another exceptionally busy year. Their efforts continue to underpin the successful delivery of the Society’s programs, events and services.
I also thank our Board of Directors, led by Chair Steven Farmer, together with our committees, volunteers and Company Secretary Michele Galagher for their guidance, governance and support.
Finally, I extend my sincere thanks to our members, sponsors, commercial partners and supporters. Your ongoing commitment to the breed is the foundation of everything we achieve.
The Droughtmaster breed continues to build momentum across the Australian beef industry. With strong commercial demand, increasing member engagement, continued investment in research and exciting opportunities ahead, the future of Droughtmaster Australia remains extremely positive.
Simon Gleeson Chief Executive Officer
REGISTRAR’S REPORT
THE 2025–26 FINANCIAL YEAR has continued to demonstrate the strength, resilience, and steady progression of both the Droughtmaster Herdbook and the breed itself. Droughtmaster Australia remains committed to maintaining the integrity of the Herdbook while delivering services and innovations that support members and strengthen the future of the breed.
Membership has remained stable, with continued interest from new breeders entering the industry, returning members and strong ongoing support from existing members. At the close of the year, membership stands at just over 700 members, reflecting steady growth as we progress toward our Strategic Plan target of 750 members and 40,000 registered females. I would like to welcome all the new and returning members to the Droughtie community and I look forward to seeing your herds grow and prosper.
Increased engagement in BREEDPLAN has resulted in continued growth in the volume and quality of performance data submitted. The collection and analysis of this information remain critical in driving genetic progress within the Droughtmaster population and ensuring breeders have access to reliable data to make informed breeding decisions. As commercial demand for objective performance information continues to increase, the value of these programs to both seedstock and commercial producers becomes increasingly significant.
During the year, Droughtmaster Australia successfully negotiated further improvements to DNA testing pricing with
both laboratory providers. These discussions have delivered additional cost efficiencies for members, helping to reduce the financial impact of DNA requirements while ensuring continued access to high-quality genetic verification services. Maintaining competitive testing options remains an important priority.
With discussion surrounding the Myostatin Gene within the Droughtmaster community, educational materials were organised and provided to the membership for better understanding and provided insight on the implications on breeding programs. Supporting informed decision-making through education remains a key focus.
Throughout the 2025–26 financial year, focus has been placed on streamlining processes surrounding registrations, herd inventory management, and DNA ordering to provide members with a more efficient and user-friendly experience. Continued investment in technology and system improvements will remain an important focus moving forward.
Thank you to all members for your continued engagement and commitment to the Droughtmaster breed. The progress achieved this year reflects the collective effort of our breeders, Board, and staff. I look forward to building on this momentum in the year ahead as we continue to strengthen our Herdbook and support the success of every Droughtmaster operation.
Jacinta Brown Registrar, DNA Coordinator and Member Services
SALES AND EVENTS REPORT
THE 2025/2026 PERIOD was another outstanding year for Droughtmaster Australia, highlighted by record-breaking results across all Society Sponsored Sales and strong participation in the Society’s key events. The continued demand for Droughtmaster genetics was reflected in new sale records, while events such as the Vytelle Queen of the Ring, Droughtmaster Futurity and Feature Show provided valuable opportunities to showcase the breed and engage with members, commercial producers and industry stakeholders. These achievements demonstrate the strength of the Droughtmaster breed and the dedication of our members, vendors, agents, sponsors and supporters.
The National Bull Sale continued to strengthen its reputation as one of Australia’s leading multi-vendor bull sales. A highlight of the 2026 event was the Vytelle Queen of the Ring, which showcased the quality of Droughtmaster females and generated strong industry interest, with Lamont Xena crowned Queen selling for $60,000. The National Bull Sale itself achieved a record top price of $280,000 for Lot 318 Oasis A Cracker Jack (PP), sold by Adam Geddes to Huntly Droughtmasters, further demonstrating the depth and quality of Droughtmaster genetics on offer.
The Roma Bull Sale continued to showcase quality bulls and attract strong support from both repeat and new buyers. The sale’s
success was highlighted by a record top price of $50,000 for Lot 43 Sommer Genius (PP), sold by Sommer Stud Droughtmasters to D Torrisi, Vitwood Droughtmasters. The popular pre-sale function once again provided valuable networking opportunities for members and industry stakeholders.
The National Female Sale continues to showcase the strength of Droughtmaster female genetics and remains an important platform for members. Strong buyer demand and competition throughout the 2026 sale reflected the confidence buyers have in the breed, culminating in a record top price of $52,000 for Glenlands J High Class, sold by J & C Childs to D Torrisi, Vitwood Droughtmasters.
The Droughtmaster Futurity celebrated its 40th Futurity in 2026, marking a significant milestone over a 41-year period, with one year missed due to COVID restrictions. The event continued to showcase the next generation of Droughtmaster cattle and young breeders, with both led and unled competitions conducted. The unled section, judged by Greg Kroll, provided an additional platform to assess cattle on their commercial and genetic merit, while the traditional led section was judged by Shannon Williamson, assisted by Associate Judge Mac Smith.
Leigh Eleison Sales & Events Manager
Oasis A Cracker Jack achieved $280,000 at the National Bull Sale.
Glenlands J High Class achieved $52,000 at the National Female Sale. Sommer Genius achieved $50,000 at the Roma Bull Sale.
MARKETING REPORT
THE 2025–26 FINANCIAL YEAR , following a BEEF year, was approached with a more measured marketing expenditure while maintaining a strong and consistent focus on promoting the Droughtmaster breed. Throughout the year, our priority remained centred on increasing brand awareness and further strengthening the presence of Droughtmaster cattle within the wider beef industry.
In alignment with the Society’s Strategic Plan, we continued to expand our reach across New South Wales and Northern Australia through strong support of key industry events, including the Casino Beef Week, Alice Springs Show and the Northern Territory Cattlemen’s Association Conference. These events provided valuable opportunities to showcase the breed, engage with producers and industry stakeholders, and reinforce the commercial benefits of Droughtmaster cattle.
Droughtmaster Beef continued to gain momentum within the hospitality sector, featuring on menus at a number of prominent Queensland venues including the Allenstown Hotel, Blackbird Brisbane and Warra Hotel. To capitalise on this opportunity, we captured and promoted the journey of Droughtmaster Beef across these venues through professionally produced video and digital content, further highlighting the quality and versatility of the product.
To support this initiative, a targeted marketing campaign was developed across a range of platforms including the Weatherzone app, Beef Central and our social media channels. The campaign
achieved strong engagement and generated highly positive feedback, demonstrating the effectiveness of consistent and strategic breed promotion.
Further investment was made into branded promotional merchandise, including Droughtmaster bar mats designed to increase visibility of both Droughtmaster beef and the breed within hospitality venues. These were enthusiastically adopted by businesses including the Allenstown Hotel, CocoBrew and Courthouse Hotel, along with many other bars and restaurants. The bar mats also proved to be an increasingly popular merchandise item, particularly in the lead-up to Christmas, with strong demand as gifts and promotional products.
Throughout the year, we continued to strengthen our digital marketing presence through the development of social media tiles and an increased focus on video content to effectively communicate key messages. With video continuing to dominate online engagement, this strategy has delivered excellent results, including substantial growth in followers, increased audience engagement and higher traffic across both our Facebook and Instagram platforms.
Looking ahead, we are excited by the opportunities and initiatives planned for the coming year and look forward to continuing to build momentum for the Droughtmaster breed.
Carley Stieler Marketing & Events Manager
Droughtmaster Stud Breeders’ Society Limited ABN 19 010 129 683 For the year ended 31 March 2026
DIRECTORS’ REPORT Droughtmaster Stud Breeders’ Society Limited For the year ended 31 March 2026
The directors present their report on Droughtmaster Stud Breeders’ Society Limited for the financial year ended 31 March 2026.
1. General information
Information on directors
The names of each person who has been a director during the year and to the date of this report are:
Names Appointed/Resigned
Todd Heyman
Bronwyn Betts
Angus McCormack
Alexander Power
Kellie Williams
Steven Farmer
Edward Hayes
Olivia Wright
Jennifer Underwood
Dean Allen
Larry Farquhar appointed 8 August 2025
Hastings Donaldson resigned 8 August 2025
Directors have been in office since the start of the financial year to the date of this report unless otherwise stated.
Principal activities
The principal activity of Droughtmaster Stud Breeders’ Society Limited during the financial year was promotion and recording of the Droughtmaster breed of cattle.
No significant changes in the nature of the Company’s activity occurred during the financial year.
Short term objectives
The Company’s short term objectives are to:
• Promote, develop and protect the breed and the brand, identify activities that will further increase breed participation; and
• Enhance membership of the Breed Society by delivering more efficient services, benefits and value.
Long term objectives
The Company’s long term objectives are:
• To be recognised nationally throughout the entire supply chain (paddock to plate) as a breed that was developed in Australia to suit the Australian environment for its resilience and exceptional meat quality.
Strategy for achieving the objectives
To achieve these objectives, the Company has adopted the following strategies:
• The traditional functions of the Droughtmaster Society will always remain core, however we must continue to be relevant and evolve to remain competitive in the beef industry.
How principal activities assisted in achieving the objectives
The principal activities assisted the Company in achieving its objectives by:
• Promotion & marketing;
• Embrace technology;
• Retain & recruit members;
• Cultural reset & unity;
• Sponsors & corporate partners;
• Operational efficiency; and
• Financial management.
Performance measures
The following measures are used within the Company to monitor performance:
• Member retention & growth through improved communications, benefits and value;
• Brand awareness through improved marketing and promotion;
• Improved data capture and utilisation;
• Up weighting in Society activities, events and sponsored sales;
• Genetic improvement and breed excellence, protect breed integrity;
• Increased partnerships and sponsorships;
• Operational efficiency and financial management; and
• Advancement in technology.
Members’ guarantee
Droughtmaster Stud Breeders’ Society Limited is a company limited by guarantee. In the event of, and
for the purpose of winding up of the company, the amount capable of being called up from each member and any person or association who ceased to be a member in the year prior to the winding up, is limited to $20 for members that are corporations and $20 for all other members, subject to the provisions of the company’s constitution.
At 31 March 2026 the collective liability of members was $13,140 (2025: $13,860).
2. Other items
Future developments and results
Likely developments in the operations of the Company and the expected results of those operations in future financial years have not been included in this report as the inclusion of such information is likely to result in unreasonable prejudice to the Company.
Meetings of directors
During the financial year, 7 meetings of directors (including committees of directors) were held. Attendances by each director during the year were as follows:
Auditor’s independence declaration
The lead auditor’s independence declaration in accordance with section 307C of the Corporations Act 2001 , for the year ended 31 March 2026 has been received and can be found on page 14 of the financial report.
Signed in accordance with a resolution of the Board of Directors:
Angus McCormack, Director
Dated
AUDITOR’S
INDEPENDENCE DECLARATION UNDER SECTION 307C OF THE CORPORATIONS ACT 2001 TO THE DIRECTORS OF DROUGHTMASTER STUD BREEDERS’ SOCIETY LIMITED
I declare that, to the best of my knowledge and belief, during the year ended 31 March 2026, there have been:
(i) no contraventions of the auditor independence requirements as set out in the Corporations Act 2001 in relation to the audit; and
(ii) no contraventions of any applicable code of professional conduct in relation to the audit.
INDEPENDENT AUDIT SERVICES
Chartered Accountants
Jiahui (Jeremiah) Thum Director
Brisbane,
QLD
Dated this 23rd day of June 2026
PROFIT OR LOSS
Stud Breeders’ Society Limited For the year ended 31 March 2026
STATEMENT OF FINANCIAL POSITION
Droughtmaster Stud Breeders’ Society Limited
As at 31 March 2026
STATEMENT OF CHANGES IN EQUITY
Droughtmaster Stud Breeders’ Society Limited For the year ended 31 March 2026
STATEMENT OF CASH FLOWS
Droughtmaster Stud Breeders’ Society Limited For the year ended 31 March 2026
NOTES TO THE FINANCIAL STATEMENTS
Droughtmaster Stud Breeders’ Society Limited For the year ended 31
March 2026
The financial report covers Droughtmaster Stud Breeders’ Society Limited as an individual entity. Droughtmaster Stud Breeders’ Society Limited is a not-for-profit Company limited by guarantee, incorporated and domiciled in Australia.
The functional and presentation currency of Droughtmaster Stud Breeders’ Society Limited is Australian dollars.
Comparatives are consistent with prior years, unless otherwise stated.
Prior Period Adjustment
In the current year, an amount of $72,166 was included as a prior period adjustment through equity. This adjustment was as the result of BIN Project costs that should have been recorded within the prior year period.
1 Basis of Preparation
The financial statements are general purpose financial statements that have been prepared in accordance with the Australian Accounting Standards - Simplified Disclosures and the Corporations Act 2001.
The financial statements have been prepared on an accruals basis and are based on historical costs modified, where applicable, by the measurement at fair value of selected non-current assets, financial assets and financial liabilities.
Material accounting policy information relating to the preparation of these financial statements are presented below, and are consistent with prior reporting periods unless otherwise stated.
2 Material Accounting Policy Information
(a) Revenue and other income
Revenue from contracts with customers
Revenue is recognised on a basis that reflects the transfer of control of promised goods or services to customers at an amount that reflects the consideration the Company expects to receive in exchange for those goods or services.
Generally the timing of the payment for sale of goods and rendering of services corresponds closely to the timing of satisfaction of the performance obligations, however where there is a difference, it will result in the recognition of a receivable, contract asset or contract liability.
None of the revenue streams of the Company have any significant financing terms as there is less than 12 months between receipt of funds and satisfaction of performance obligations.
Specific revenue streams
The revenue recognition policies for the principal revenue streams of the Company are:
Female Inventory Fees
This is a charge for registering female cattle through the Herdbook system (ABRI). Fees are applied to relevant female categories aged over 20 months. Revenue is recognised at the commencement of the financial year.
DNA Testing Revenue
This is a charge for parentage and genetic testing services provided to members. The Society coordinates testing with an external DNA laboratory and applies an administrative markup. Revenue is recognised when the testing service is performed or when administration services are provided.
Breed Promotion Fee
This is a fee charged on a per animal basis across each member’s herd for breed promotion activities. Where a member’s female herd exceeds 500 head, the total fee is capped. Revenue is recognised over the financial year to which the fee relates.
Membership Fees
This is an annual membership fee charged in accordance with the relevant membership categories. Revenue is recognised at the commencement of the financial year.
Nomination Fees
These are fees charged for each animal entered into sales conducted by the Company, including the National Bull Sale, Roma Bull Sale and National Female Sale. Revenue is recognised when the nomination occurs.
Stud – Bull
This is a registration fee charged for the registration of bulls. Revenue is recognised upon registration.
Advertising
This represents advertising revenue earned from the Droughtmaster Australia Magazine (Digest), Calendar Advertising and National Femal Sale Advertising. Revenue is recognised when the advertisement is published.
General Transfers
This is a fee charged for processing changes in ownership through animal transfers. Revenue is recognised when the transfer is completed.
Revenue recognition policy for contracts which are either not enforceable or do not have sufficiently specific performance obligations
The revenue recognition policies for the principal revenue streams of the Company are:
BIN Research Project
As part of the research project, steers are purchased and subsequently sold by the Company. The net amount recovered represents the difference between the sale proceeds and the purchase cost.
Statement of financial position balances relating to revenue recognition
Contract assets and liabilities
Where the amounts billed to customers are based on the achievement of various milestones established in the contract, the amounts recognised as revenue in a given period do not necessarily coincide with the amounts billed to or certified by the customer.
When a performance obligation is satisfied by transferring a promised good or service to the customer before the customer pays consideration or the before payment is due, the Company presents the contract as a contract asset, unless the Company’s rights to that amount of consideration are unconditional, in which case the Company recognises a receivable.
When an amount of consideration is received from a customer prior to the entity transferring a good or service to the customer, the Company presents the contract as a contract liability.
Contract cost assets
The Company recognises assets relating to the costs of obtaining a contract and the costs incurred to fulfil a contract or set up / mobilisation costs that are directly related to the contract provided they will be recovered through performance of the contract.
Costs to obtain a contract
Costs to obtain a contract are only capitalised when they are directly related to a contract and it is probable that they will be recovered in the future. Costs incurred that would have been incurred regardless of whether the contract was won are expensed, unless those costs are explicitly chargeable to the customer in any case (whether or not the contract is won).
Set-up / mobilisation costs
Costs required to set up the contract, including mobilisation costs, are capitalised provided that it is probable that they will be recovered in the future and that they do not include expenses that would normally have been incurred by the Company if the contract had not been obtained. They are recognised as an expense on the basis of the proportion of actual output to estimated output under each contract. If the above conditions are not met, these costs are taken directly to profit or loss as incurred.
Costs to fulfil a contract
Where costs are incurred to fulfil a contract, they are accounted for under the relevant accounting standard (if appropriate), otherwise if the costs relate directly to a contract, the costs generate or enhance resources of the Company that will be used to satisfy performance obligations in the future and the costs are expected to be recovered then they are capitalised as contract costs assets.
Provisions relating to contracts with customers
There are no provisions relating to contracts with customers identified during the year.
Financing component of contracts
with customers
There are no significant financing component of contracts with customers identified during the year.
Other income
Other income is recognised on an accruals basis when the Company is entitled to it.
(b) Inventories
Inventories are measured at the lower of cost and net realisable value.
Inventories acquired at no cost, or for nominal consideration are valued at the current replacement cost as at the date of acquisition, which is the deemed cost.
(c) Property, plant and equipment
Each class of property, plant and equipment is carried at cost less, where applicable, any accumulated depreciation and impairment.
Items of property, plant and equipment acquired for significantly less than fair value have been recorded at the acquisition date fair value.
Depreciation
Property, plant and equipment, excluding freehold land, is depreciated on a straight-line basis over the asset’s useful life to the Company, commencing when the asset is ready for use.
The depreciation rates used for each class of depreciable asset are shown below:
At the end of each annual reporting period, the depreciation method, useful life and residual value of each asset is reviewed. Any revisions are accounted for prospectively as a change in estimate.
(d) Financial instruments
Financial assets
All recognised financial assets are subsequently measured in their entirety at either amortised cost or fair value, depending on the classification of the financial assets.
Classification
On initial recognition, the Company classifies its financial assets into the following categories, those measured at:
• amortised cost
Amortised cost
The Company’s financial assets measured at amortised cost comprise trade and other receivables and cash and cash equivalents in the statement of financial position.
Subsequent to initial recognition, these assets are carried at amortised cost using the effective interest rate method less provision for impairment.
Interest income, foreign exchange gains or losses and impairment are recognised in profit or loss. Gain or loss on derecognition is recognised in profit or loss.
Trade receivables and contract assets
Impairment of trade receivables and contract assets have been determined using the simplified approach in AASB 9 which uses an estimation of lifetime expected credit losses.
The amount of the impairment is recorded in a separate allowance account with the loss being recognised in finance expense. Once the receivable is determined to be uncollectable then the gross carrying amount is written off against the associated allowance.
Where the Company renegotiates the terms of trade receivables due from certain customers, the new expected cash flows are discounted at the original effective interest rate and any resulting difference to the carrying value is recognised in profit or loss.
Other financial assets measured at amortised cost
Impairment of other financial assets measured at amortised cost are determined using the expected credit loss model in AASB 9. On initial recognition of the asset, an estimate of the expected credit losses for the next 12 months is recognised. Where the asset has experienced significant increase in credit risk then the lifetime losses are estimated and recognised.
Financial liabilities
The financial liabilities of the Company comprise trade payables.
(e) Impairment of non-financial assets
At the end of each reporting period the Company determines whether there is evidence of an impairment indicator for non-financial assets. Where an indicator exists and regardless for indefinite life intangible assets and intangible assets not yet available for use, the recoverable amount of the asset is estimated.
(f) Cash and cash equivalents
Cash and cash equivalents comprises cash on hand, demand deposits and short-term investments which are readily convertible to known amounts of cash and subject to an insignificant risk of change in value.
(g) Employee benefits
Provision is made for the Company’s liability for employee benefits, those benefits that are expected to be wholly settled within one year have been measured at the amounts expected to be paid when the liability is settled.
Employee benefits expected to be settled more than one year after the end of the reporting period have been measured at the present value of the estimated future cash outflows to be made for those benefits. In determining the liability, consideration is given to employee wage increases and the probability that the employee may satisfy vesting requirements. Cashflows are discounted using market yields on high quality corporate bond rates incorporating bonds rated AAA or AA by credit agencies, with terms to maturity that match the expected timing of cashflows. Changes in the measurement of the liability are recognised in profit or loss.
3 Critical Accounting Estimates and Judgments
The directors make estimates and judgements during the preparation of these financial statements regarding assumptions about current and future events affecting transactions and balances. These estimates and judgements are based on the best information available at the time of preparing the financial statements, however as additional information is known then the actual results may differ from the estimates.
4 Other Revenue and Income
5 Finance Income and Expenses
6 Cash and Cash Equivalents
7 Trade and Other Receivables
8 Inventories
9 Other Non-Financial Assets
10 Property, plant and equipment
(a) Movements in Carrying Amounts
11 Trade and Other Payables
Trade and other payables are unsecured, non-interest bearing and are normally settled within 30 days. The carrying value of trade and other payables is considered a reasonable approximation of fair value due to the short-term nature of the balances.
12 Contract Balances
Contract assets and liabilities
The Company has recognised the following contract assets and liabilities from contracts with customers:
(i) The contract liability relates to grant income received that is subject to sufficient performance obligations that has not yet been completed. As such, the grant income is recognised as a liability until the specific performance obligations are met.
13 Employee Benefits
14 Reserves
(a) General reserve
A general reserve called “Beef 2027 Reserve” was created during the year for the purpose of reserving funds to be expended in relation to Rockhampton Beef Week event in May 2027. Any remaining funds in the reserve after the event will be transferred back to Retained Earnings.
15 Financial Risk Management
16 Members’ Guarantee
The Company is incorporated under the Corporations Act 2001 and is a Company limited by guarantee. If the Company is wound up, the constitution states that each member is required to contribute a maximum of $20 each towards meeting any outstanding obligations of the Company. At 31 March 2026 the number of members was 657 (2025: 693).
17 Key Management Personnel Disclosures
The remuneration paid to key management personnel of the Company is $299,541 (2025: $272,703).
18 Auditors’ Remuneration
Remuneration of the auditor Independent Audit Services, for: -
19 Contingencies
In the opinion of the Directors, the Company did not have any contingencies at 31 March 2026 (31 March 2025:None).
20 Related Parties
(a) The Company’s main related parties are as follows:
Key management personnel - refer to Note 17.
Other related parties include close family members of key management personnel and entities that are controlled or significantly influenced by those key management personnel or their close family members. There were no related party transactions that occurred during the year.
21 Events after the end of the Reporting Period
The financial report was authorised for issue on 01 June 2026 by the Board of Directors. No matters or circumstances have arisen since the end of the financial year which significantly affected or may significantly affect the operations of the Company, the results of those operations or the state of affairs of the Company in future financial years.
22 Statutory Information
The registered office and principal place of business of the company is:
Droughtmaster Stud Breeders’ Society Limited
40 Thorn Street
IPSWICH QLD 4305
Droughtmaster Stud Breeders’
Society Limited
For the year ended 31 March 2026
Directors’ Declaration
The directors of the Company declare that:
1. The financial statements and notes, as set out on pages 15 to 26, are in accordance with the Corporations Act 2001 and:
a. comply with Australian Accounting Standards – Simplified Disclosure Standard; and b. give a true and fair view of the financial position as at 31 March 2026 and of the performance for the year ended on that date of the Company.
2. In the directors’ opinion, there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable.
This declaration is made in accordance with a resolution of the Board of Directors.
Angus McCormack, Director
Dated 23 June 2026
INDEPENDENT AUDIT REPORT TO THE MEMBERS OF DROUGHTMASTER STUD BREEDERS’ SOCIETY LIMITED
Droughtmaster Stud Breeders’ Society Limited
For the year ended 31 March 2026
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of Droughtmaster Stud Breeders’ Society Limited (the Company), which comprises the statement of financial position as at 31 March 2026, the statement of profit or loss and other comprehensive income, the statement of changes in equity and the statement of cash flows for the year then ended, and notes to the financial statements, including material accounting policy information, and the directors’ declaration.
In our opinion, the accompanying financial report of the Company is in accordance with the Corporations Act 2001, including:
(i) giving a true and fair view of the Company’s financial position as at 31 March 2026 and of its financial performance for the year ended; and
(ii) complying with Australian Accounting Standards Simplified Disclosures and the Corporations Regulations 2001.
Basis for Opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report section of our report. We are independent of the Company in accordance with the auditor independence requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.
We confirm that the independence declaration required by the Corporations Act 2001, which has been given to the directors of the Company, would be in the same terms if given to the directors as at the time of this auditor’s report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Other Matter – Prior Period Adjustment
We draw attention to the comparatives note in the financial statements, which was processed directly via an adjustment to retained earnings. This adjustment was as a result of BIN project costs that should have been recorded within the prior year period.
Other Matter – Reliance on Third Party for Inventory
We draw attention to the inventory balance recorded in the financial statements at 31 March 2026. To gain sufficient and appropriate audit evidence regarding the completeness and existence of the inventory, we relied on information provided to us by the Australian Brahman’s Association. The information provided to us was sufficient for the purpose of the audit.
Other Information
The directors are responsible for the other information. The other information obtained at the date of this auditor’s report is included in the Droughtmaster Annual Report (but does not include the financial report and our auditor’s report thereon).
Our opinion on the financial report does not cover the other information and accordingly we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial report or our knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed on the other information obtained prior to the date of this auditor’s report, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of Directors for the Financial Report
The directors of the Company are responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards – Simplified Disclosures and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error.
In preparing the financial report, the directors are responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.
Auditor’s Responsibilities for the Audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial report.
As part of an audit in accordance with the Australian Auditing Standards, we exercise professional judgement and maintain professional scepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the financial report, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Entity’s internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the responsible entities.
Conclude on the appropriateness of the responsible entities’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial report or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Group to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the financial report, including the disclosures, and whether the financial report represents the underlying transactions and events in a manner that achieves fair presentation.
Obtain sufficient appropriate evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the financial report. We are responsible for the direction, supervision and performance of the Group audit. We remain solely responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
INDEPENDENT AUDIT SERVICES
Chartered Accountants
Jiahui (Jeremiah) Thum Director Brisbane, QLD
40 Thorn Street, Ipswich QLD 4305
07 3281 0056
office@droughtmaster.com.au www.droughtmaster.com.au