MLA Chairman & Beef Producer Don Heatley - On The Global Finacial Crisis

I spoke with Meat & Livestock Australia Chairman Don Heatley to discuss the implications of the Global Credit crisis for Australian Livestock producers:

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image Don Heatley

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Agmates:
Do what are you seeing as the implications on our markets of the credit crisis?

Don Heatley:
Domestically we are not seeing the drop in the dollar as having any impact yet. However as the economy tightens we may see a trend for meat to be eaten at home rather than out at restaurants. In fact there is some evidence that is happening now.

From an export point of view its a little early to say yet what impact the credit crunch may have on the supply chain. The product that is currently on the water is fine, but as to how a thightening of lines of credit affects the processors, that would be pure speculation at the moment.

There is nothing we can do there but wait and see what impact that has if any on new orders.

Agmates:
As Chairman of MLA and as a fellow beef producer what advice would you give to livestock producers in these troubled times.

Don:
As a fellow producer the thing I’d say to people is to stay calm. Don’t do anything rash. These are unchartered global waters and its not a time when you want to be making rash decisions - so yes my advise would be to stay calm, don’t do anything silly and keep your business running well.

Our meat industry is 65% reliant on exports and we really just have to wait for any affect to flow back through the global supply chain.

Having said that people should remember that a third of the market for our meat is domestic. That market is strong.

Agmates:
What are your thoughts on Prime Minister Kevin Rudds announcement last night to guarantee all bank deposits for the next three years.

Don:
There’s no doubt in my mind that the PM has done nothing but a tremendous amount of good with the action he announced.

What we need at this time is calm economic management and planning. The announcement will have a calming affect on the industry and thats exactly what is required right now.

They great danger was that sectors of the industry and individuals might panic for no other reason than what they are seeing happening in the media. Fear creates fear and panic creates panic, the two feed on each other when behind it all there is no sound logical reason for it.

The PM with his announcement has steadied the ship and thats exactly what was needed.

Agmates:
Thanks Don, the Agmates community appreciates you sharing your thoughts with us in these unprecedented and historic times.

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Have Your say!

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17 Responses to “MLA Chairman & Beef Producer Don Heatley - On The Global Finacial Crisis”

  1. mike fromm says:

    The biggest concern i have [it sent alarm bells ringinglike never before] about rudd,s anouncement re guaranteeing all bank deposits MEANS THE EXACT OPPOSITE ..how many pm,s and pollies have said one thing and do the exact opposite?? no this no dat and guess what we got!@! to make that statement is a major concern for any deposit holder. bet ya all the people in the” CLUB” know what to do and are moving their money to …………………….da da.

  2. Rod Barrett says:

    Witness our classic example of headless chooks.

    The questions to Don Heatley by Agmates were:
    1. Implications of the credit crisis to producers. 2. Advice to producers from MLA.
    3. Comment on the Rudd bail out.

    Meantime we have digressed to Andrew Denton, Imran Khan,Kevin Bloody Wilson, Wilsons wife,socialism by stealth, the structure of MLA,and others ad infinitum. As the Bundy Bear would say…“Classic”!

    • Rob Wass says:

      Rod,

      Headless chooks tends to have the same meaning as “Flying Blind”. Wasn’t that exactly what we got with the answers to the AgMates questions ??????

      Mate, you are looking in the wrong place if you are looking for headless chooks.

      Be careful that you clearly identify that it is indeed a headless chook or simply an ill-informed ostrich with its head in the sand watching ads on television.

      AgMates blogs are an open forum which, like all open forums raise other issues and points of view. It obvious that you disagree with open and frank forums preferring the closed shop approach more in line with the ethos of MLA and the assorted hangers-on.

      • Agmates says:

        G’day Rob,

        Exactly - Agmates is an open forum, and that is why a lot of industry leaders (note to Rod Dunbar - I never said publically elected industry leaders - not sure that there is any such thing in Australian Agriculture) will not be interviewed for, or comment on Agmates.

        Agmates does not sensor comments as other online rural sites do (you can work that one out for yourself), we allow each and every person to have their say - thats why we are unique in the industry and have such a big and growing following. Power to the individual. We do sensor the obvious - defamatory comments, racist comments, bad language, spam etc.

        Don Heatley is well aware of our open forum format and all credit to him knowing that and yet still being willing to convey his thoughts as chairman of the MLA and as a Cattle Producer to the Agmates community.

        “Onya” Don.

        • Sue says:

          And an Onya for Rob too.

          • Agmates says:

            G’day Sue,

            Exactly - Could not agree more, its what it is all about - robust debate and discussion, so we can all learn a little more about the issues.
            :)

            • Rod Dunbar says:

              Steve
              I agree with both you and Sue, Agmates is a great for forum, you post everything in the spirit of open robust debate and discussion. I have always had trouble having comment on another forum (that other one!) published, so you get my vote.

              Isn’t it a pity that the supporters of MLA don’t use Agmates to convince those of us who are the ‘non believers’ with good straight fact and solid argument? The only thing we have seen thus far is the headless chook!!!

              Thanks, keep up the good work.

  3. Rod Dunbar says:

    Steve

    I agree that we are in the midst of troubled times and I am certain as anyone can be that it will take more than “a firm hand on the tiller”, and… ”she’ll be right mate” to navigate through the coming minefield; I think we have a potential sub prime mortgage situation here in rural Australia with almost all rural property sales in recent times there is no contemplation of paying the borrowings back.

    I have to agree with Rob Wass regarding his simplistic construction of the structure of the livestock “industry “and you and Rod Barrett may be surprised to learn that the current Minister for Agriculture, Forestry, and Fisheries agrees with us as well!!

    I, as part of a private group, wrote a 10 page submission to Minister Burke about 6 months ago detailing many things, including invalidity of MLA registration, prescription (acquisition) of property in livestock, appointment of CCA and other peak councils MLA, Ausmeat etc… as Commonwealth Public officials, MLA has 2 types of Shareholders, Livestock owners cannot control the company, Livestock owners are compulsory members (an illegal activity under Corporations Law), no identification of Tax payers (levy), no way to trace who paid what levy and how much… and the list goes on and on……

    In the Minister’s reply he did not disagree with the construction contained in our submission; what he also said was …”I am not inclined to interfere unless there is clear evidence that these arrangements are failing the industry.”

    “Industry” is a word much used by many people, the word has a statutory meaning and that is what the Minister was referring to; it is contained in the Australian Meat and Livestock Industry Act at this address,

    The definition of “industry” in relation to all livestock and meat produced in Australia includes a word … Prescribed… which means …” A method of acquiring a nonpossessory interest in Property.”

    The Prescription is for and on behalf of the Commonwealth, the same people that pay Dons wages, the guys that he works for, looking after their interests.

    Steve, when you mentioned … “one of our industry leaders”, were you referring to the statutory meaning or something else; because nobody voted for Don Heatley, you simply cannot, he’s just appointed and the Industry surely is not MLA… is it?

    MLA is just an “Exempt Public Authority” a non entity under Corporations law; and the Minister agrees with it.

  4. Rod Barrett says:

    I think we are overly hard on Don Heatley.

    Asking him to advise producers is tough when barely anyone has a handle on what is really going on out there. Run your business, stay on the job, manage what you have control over, that seems sound to me.

    • Agmates says:

      G’day Rod,

      I happen to agree with you. I think in the troubled times of the last week it was important to hear from one of our industry leaders, thats why I interviewed Don.

      In the interview, I found him easy to talk too, straight forward, open and level headed. He did not dodge any issue nor was he vague.

      As you say virtually nobody had a handle on what was happening, indeed it was unchartered waters and I too thought Don advice to fellow growers showed great wisdom.

      Cheers - Steve :)

      • Rob Wass says:

        Steve,

        It seems to me that the point has been lost here. The point is, it is what Don Heatley represents (MLA) and his indulgent willingness to represent this quasi Government Authority that has been given into the hands of a few Government prescribed bodies under the false premise that it is producer owned and controlled.

        The policies in which Mr. Heatley has signed off on include, a limited right to “run your business”, a limited right to “stay on the Job” and no right to “manage what you have control over” because management and control of your livestock business has been indentured with MLA without your consent by these very same prescribed bodies. Its called the “Meat Industry Strategic Plan” (MISP).

        I am sure that Mr. Heatley is a very nice person and a true gentleman however, there are many past and present gentleman that fit this description but that does not change what they stand or stood for.

  5. Rob Wass says:

    Steve,
    I thought the interview with Imran Khan was absolutely magic.

    I also though Kevins’ wife contrasted brilliantly with her husband however with an outstanding sense of humour. How great it is to see a couple of real and independent Australians telling it as it is, without those ever present rose coloured glasses.

    The crops down this way are, in places above average and in other places well below average. No prizes for figuring which category mine fit into !!!!!!

    I’m hoping there is enough to pay for the diesel.

  6. Rod Dunbar says:

    It’s a funny twist of fate that the situation that grips MLA and Mr Heatley, the crash on Wall Street, was caused by the enactment of a Law in the USA in Jimmy Carter’s time; a Socialist Law; which made it illegal for Financial Institutions to refuse a loan simply because the applicant couldn’t pay it back!! Social Engineering they call it.

    The funny twist is that Mr Heatley’s RMAC and MLA are also the result of a Socialist Law the Australian Meat and Livestock Industry Act where the Commonwealth acquired an interest in all the livestock and meat in Australia and appointed RMAC to manage it on behalf of the Commonwealth; so the “Industry” and the Wall Street crash have something in common!!!

    And…… we have to pay $1,000,000,000.00; yes that’s right, one billion dollars by way of a specialised Tax every 5 years for the privilege to hear and see comment as weak as this bullshit!!!!!! Some of us have learnt to use computers and use the net.

    • Rob Wass says:

      Rod,
      I think that you are being a bit hard on comrade Don. His answers to AgMates questions were decisive and accurate, “don’t panic” and “I don’t know”. Don, is a very busy man, what with producing all his prescribed cattle whilst giving his equity in them to the State and at the same time running around the country telling everyone that will listen how MLA have a restrictive right to interfere in our businesses.

      However, his trusty side kick was able to give an update using the most useless pieces of information one could ever read.

      There is no doubt that MLA have got their finger on the pulse to the extent that they have “some evidence” that consumers are eating more at home and less at restaurants. The point I would make is that thank god the consumers have made a conscience choice to even eat, and it is of little consequence where they actually do this as long as they keep eating. I am sure we will all wait with baited breath when this trend is reversed.

      One of the best, and funniest, marketing plugs I have ever seen for red meat was on Andrew Denton’s “Enough Rope” last night (13/10/2008) where Denton was interviewing Kevin “Bloody” Wilson.

      Wilson told the story of when he sitting in a restaurant, waiting for his meal, opposite an alternative lifestyle lady who, being a vegetarian, was eating a large basket of green leafy vegetables.

      When Wilsons’ meal of steak and chips turned up the women sprang to her feet yelling at Wilson, “how can you eat that, don’t you know the cruel way that animal died”. Wilson responded to the women with, “yeh, you starved it to death” !!!!!

      How much did this plug cost the cattle owners of Australia, not one cent !!!!

      • Agmates says:

        G’day Rob,

        Good to see you touch on Andrew Denton’s “Enough Rope”.

        A free plug for ABC - Monday Nights ABC line up with - 4 Corners, followed by “Media Watch” followed by “Enough Rope” is without doubt in my mind the Best Television in Australia.

        I try to NEVER miss it.

        I thought his interview with Imran Kahn was just outstanding television didn’t you?

        By the way - how is your crop looking?

      • Sue says:

        I agree Rob it was a brilliant response …. and a far more sensitive description of the woman (“an alternative lifestyle lady”) then the one Kevin bloody Wilson offered.

        How inspirational was Imran Khan and where can you find a politician like that?

        • Von Curtis says:

          Yes he was very brave , thoughtful and tactful saying what he said I was quite surprised - it is confirmation that things are changing for the better slowly but surely.

          He is a great asset to his country and I hope he stays alive to help his people who have suffered greatly under a dictator and the US idiotic ‘war on terror’

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