Managing financial and psychological distress brought on by the combination of severe drought and collapse of live export market opportunities were key themes to emerge during an open and lively discussion at the Northern Steakholder forum held in Mt Isa on Tuesday.

Beef producers from across northern Australia engaged with industry and political representatives on wide ranging topics, including mending bridges through rebuilding relationships with Indonesian trade and government circles, domestic beef marketing, and the pressing need to relieve regulatory and cost burdens from the industry.  

But it was the more immediate challenges faced by producers in a region hard-hit by a shocking summer rainfall season in 2012-13, and the likelihood of a further five or six months before any real prospect of a seasonal break that occupied many stakeholders’ minds.

Hughenden beef producer Rob Atkinson said while tackling the need for longer-term solutions for industry problems was important, there was also a pressing shorter-term challenge facing many droughted northern beef producers in simply getting through to Christmas.

“To me, the biggest challenge for all of us here today is about survival,” he said. 

“Realistically, we are still five months away from a wet season; a lot of producers have already sold next year’s steers; and a lot of people can’t afford to send any more cattle away on agistment,” he said.

CCA ‘s Peter Hall said there were no easy solutions, coming in a year like this with a set of seasonal and market circumstances the likes of which most people had seen before. “People are probably going to struggle through this year in some way, shape or form, but it’s next year when we could see a lot of enterprises going to the wall.”

“It’s now we need to be speaking with our current and potential government ministers about making plans for that prospect. One of the things they need help with is interest rate subsidies. If producers could get a break for a year on paying bank interest rates, it just might get them through next year until they can get some cattle numbers around them, and some cash flow again.”

“We need to go back and consider that as one of the options, because without it, some of us may not be here next year,” Mr Hall said.

Shadow agriculture minister John Cobb, who sat on the forum panel, said he could not provide any certainty on whether a coalition Government would go back to an interest rate subsidy, he said it would be ‘one of the first things’ for discussion if and when the Coalition took government.

NFF vice president Brent Finlay said with strong Federal and State political representation at the Mt Isa meeting, it was important to keep drawing attention to the situation across north Queensland and northern Australia.

“A lot of southern Australia has now had rain, and for those in northern Australia where that had not yet happened, there was a need to continue to support each other.

“We know there is going to be a lag in terms of next year, and the year after,” Mr Finlay said. “Cash-flow wise, unfortunately some of the worst of the problem may still be to come.”

Managing psychological welfare

Beef Crisis Committee chairman Barry Hughes, highlighted the need to consider the psychological state of beef producers across northern Australia as the current market access/drought crisis worsens.

“The elephant in the room is the mental state of people right across our industry,” he told the forum. “What steps are being taken to address this huge issue?”

AgForce president Ian Burnett said human wellbeing was a major concern at present, and something that AgForce considered very seriously. Field staff had received specialist training in recent weeks in recognising and dealing with cases where mental health issues might be present. Members regularly received contact information for counselling and help, if required.

John Cobb suggested the only good thing that came out of the 1980s drought years across his region was that people came out of the woodwork, recognised they had a problem, and worked hard to help each other.

“People became much better than what they were previously at recognising if and when they had a problem, and doing something about it,” he said. “People became prepared to get up and talk about their own issues, which did not happen previously.”

NTCA’s Luke Bowen said the issue was a shared responsibility, and the more it could be shared across networks, building awareness, the better.

“But organisationally, we also have a real responsibility to make sure materials are available, and are well communicated, and having people on the ground who can pick up the warning signs.”

NFF’s Brent Finlay said with more than 100 government financial counsellors operating around Australia who were regularly dealing with drought and market-impacted producers, they were often the first point of contact with people who were suffering psychologically.

NFF was keen to see these counsellors better equipped with skills to recognise the symptoms and provide support for producers who needed further help, he said.

Peter Hall said open forums like the meeting at Mt Isa were helpful, because it allowed people who felt isolated to go out and have a yarn about their own circumstances with others who were in the same boat.

“Its beholden on all of us to make sure that as many people who might be under pressure come along and talk about it with others,” Mr Hall said.

Rebuilding relationships with Indonesia

Dialogue during the forum also focussed on the upcoming Indonesian Government convened meeting in Brisbane next month, likely to be attended by senior Indonesian ministers and trade representatives.

Troy Setter from AA Co asked what the priorities were for the Australian industry at the meeting.

NT Cattlemens Association president David Warriner said it was equally important for the Indonesians to participate in the industry here, as it was for Australian investment in Indonesia.

“We need to be talking about infrastructure, particularly in the north, good R&D programs that deliver proper outcomes, and cement down some core items to bring to the table, having access to trade and agriculture ministers from Indonesia while they are here,” he said.

NTCA chief executive Luke Bowen said the meeting represented a good opportunity for both sides to talk fairly frankly, and to establish greater confidence among the Indonesians and Australian stakeholders present.

Australian Livestock Export Council’s Alison Penfold said one of the challenges would be articulating to the Indonesians that while Australia had a strong desire to invest in their industry, some challenges were seen in that.

“For example we don’t know from one day to the next what regulations are going to be in place. They are wanting us to invest in areas of Indonesia that are not the lush tropical environment of west Java, but a much harsher environment, where projects in agricultural production have not had high success rates,” she said.

“We also face some significant infrastructure issues. So in our view there has to be a free and frank discussion because while there is no doubt there is a desire to work with the Indonesians, we face some huge hurdles that would have to be overcome. That will require considerable input from both sides, before anybody decides to invest in those particular areas.”

David Warriner said the actions to be taken by an incoming coalition government in Australia would be absolutely critical in rebuilding a northern industry hit hard by Indonesian market failure and drought.

“Your government will have to show some extraordinary leadership and tenacity in order to pull an industry and its people out of its current circumstances, so that in 20 years’ time, we have an industry worth handing on to the next generation,” he told John Cobb.

Luke Bowen suggested that with a federal election on the horizon, there was a risk that political parties would try to create a point of difference over Indonesia in the election process, which could be very dangerous, in sending the Indonesians mixed messages.

“We need to send a consistent message to Indonesia, regarding things like regulation, cost of production and compliance, and how we approach the need for relationships,” he said.

Alison Penfold said ALEC had put six priorities for the live export sector before both the Government and the opposition. These were:

• Live export trade policy security. “Never again do we want to see another ban slapped on the industry overnight.”
• Refinement around ESCAS: “We support the supply chain assurance system, but it is costly, and contains a lot of compliance issues where we think change can be implemented to improve efficiency, without compromising the system.”
• Cost of certification and regulation. “We’ve seen a significant increase in charges – something like 141pc, in verification chargers on live exports, which adds huge costs to industry right across the supply chain.”
• Improving consistency, transparency and predictability of the regulator.
• Governments facilitating better market access, including emerging markets like Vietnam, and China.
• Promoting the fact that Australia had taken animal welfare change to the world. “For example we have now trained more than 2000 Indonesians in animal handling and slaughter techniques, and more than 900 in the Middle East,” she said.