00:00 Seeking a fresh feed, this mob's heading to a new paddock.
00:11 It may look alright, especially when you're looking out into the background of the film,
00:14 but we're in a 650mm rainfall area and we've had 300mm.
00:20 In the central west of New South Wales, Nigel Kerran's been adjusting to the dry.
00:24 Our de-stock started in March and we've been de-stocking and our last load of animals went
00:30 out yesterday morning and that's it for us now.
00:32 We're down to where we want to be as far as breeding numbers go.
00:37 It's not just the weather that this sheep breeder and cattle trader must contend with.
00:41 It's a culmination of a perfect storm what's going on at the moment.
00:44 You've got oversupply, you've got the market crashing, you've got low labour in processing
00:51 plants and interest bills that have grown.
00:56 Interest bills weren't a problem until the market collapsed.
00:59 The other big one is the fear that's been created by this El Nino prediction.
01:05 I've never had to deal with that one.
01:08 He's not alone.
01:09 Australia's sheep industry is in trouble.
01:12 It's crazy how it's just turned up where most business has expanded in the last seven or
01:18 eight years.
01:21 We were, all our budgets told us to go like hell, great idea, grow your business.
01:26 But now it's turned around with a commodity now that's only worth 30% of what it was.
01:35 It's making it very, very tight to meet those financial commitments in businesses.
01:41 Australian sheep and mutton prices have plummeted this year.
01:44 Average price indicators have fallen by as much as 80%.
01:49 It's been a steep learning curve for Tana Morris, who's completing a uni placement at
01:53 the Cairns-Pomerino stud.
01:55 I'm just starting off my career in ag and it's pretty mind-blowing how quickly things
02:00 can change with even just six months.
02:02 I think it is uncertain, I think is the word.
02:06 People are not so sure what they should be doing with stock, especially with prices wise.
02:13 I think the word is uncertain.
02:15 But at the moment, there's not a lot of ways to run.
02:20 And this is the third downturn I've seen in sheep and cattle.
02:26 And every time you look back at it, it was really bloody ugly whilst you were in it.
02:33 And if it happened to coincide with drought, then that made it even worse.
02:37 And for me, it's just here we go again.
02:39 [BLANK_AUDIO]
