Sour livestock sentiment the fault of El Nino: MLA boss

Addressing the downturn in livestock prices, MLA boss Jason Strong says the early calls of an El Nino season were detrimental to industry sentiment.

A meat industry leader has blamed the current downturn in prices on talk of El Nino.

Meat and Livestock Australia managing director Jason Strong told delegates at the organisation’s update at Bendigo that sentiment had been badly affected by the threat of a dry season ahead.

And while much of the meeting’s fixture centred around sustainability, Mr Strong said it was important to address the downturn on prices.

“What we have seen in the past year is the sentiment of the industry and so much of the behaviour of the market has got out of step with conditions,” Mr Strong said.

“It has created a really difficult and challenging environment for us.”

Mr Strong took aim at the level of credence and importance placed on early calls about coming El Nino.

MLA managing director Jason Strong at the MLA Update at Bendigo.

“This discussion around El Nino has been one that has been really destructive around the sentiment in the industry,” he said.

“I think some of it has come from having three such fantastic years and it was hard to believe anything apart from a terrible result in the next year was going to be possible.”

But Mr Strong said it was the level and length of the discussion about El Nino, well before it was officially declared in September, that was so destructive to sentiment, with the flow on effect on prices.

“Having the knowledge about what happens or potentially is happening in our environment are incredibly valuable tools but they have been weaponised in the way we think about the industry and the sentiment,” Mr Strong said.

“If you listen to some of the commentary and perspective about El Nino, you would think it is going to be hotter and drier and never raining again.

“It’s really not the case.”

Mr Strong said weather predictions provided valuable information about how to manage biomass and manage the resources in front of producers “but we have to try to keep it in perspective”.

“We need to take that information into consideration and be aware of it and use it as part of our management tools but we need to keep in perspective as it’s not the only thing that is driving what’s happening across our sector,” he said.