Mr Joyce made the declaration at the Tamworth Business Chamber’s state of the nation, which was attend by more than 100 people.

“This could have huge ramifications for us,” Mr Joyce said.

“If those sanctions continue to ramp up, you will get a wave of excess product in the protein market, product from the United States looking for a home and it will start looking for a home in our markets.

“This will have a double-whammy effect – as that happens, it will be around the time we come out of drought. The price of cattle and sheep, for restocking purposes, will go through the roof, and the price globally will start to fall through the floor.”

Mr Joyce said he’d raised the concern with the Prime Minister, so that if and when the nation’s meat industry takes a hit, the government would be prepared.

The ongoing drought dominated discussions, with Mr Joyce advocating for “legacy infrastructure projects” that provide an economic stimulus to drought-affected towns. 

“We have to make sure we get the commerce of the towns invigorated,” he said.

“The way we do that by bring forward capital infrastructure projects that have a legacy, so when the drought is over, they’re still there.

“I’m talking about roads, bridges, water infrastructure, so that after the drought finishes – and it will – we have projects that have left us in a better position, and with a stronger economic base in to the future.”

Chamber director Stephanie Cameron said many businesses would start to feel financial strain in December and the new year.

“As farmers get through this season without planting a winter crop, and they get to November and don’t receive a pay cheque, I think you’ll find that’s when the cash flow crisis will really start to hit home,” she said.

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