A major agriculture firm has blamed the Bureau of Meteorology for significant financial losses. 

Elders has reported that its earnings for the year will fall significantly below expectations. 

The company attributes the downturn to the Bureau of Meteorology's forecast of an El Nino event last September, which led to a drastic and premature reduction in livestock and crop production by farmers.

The Bureau’s warning had anticipated a very dry summer, increasing the likelihood of heatwaves and fires. 

Contrary to these predictions, the country experienced one of its wettest summers, particularly in Victoria, where rainfall records were shattered. 

Elders cited this prediction as a key factor behind subdued client sentiment, which only saw improvement in the early months of the year.

The fallout from the El Nino alert was swift and significant, with farmers in New South Wales and Victoria quickly selling off cattle in anticipation of harsh conditions. 

This led to a steep decline in beef prices and other farm commodities, directly impacting Elders' revenue and profit margins. Shares in Elders dropped by more than 24 per cent following the announcement and the actions taken in response.

Despite this, Elders remains optimistic about the future, pointing to improved conditions for the winter crop and anticipating a shift in sales to the latter half of the financial year, particularly in Western Australia. 

The Bureau of Meteorology has defended its forecast, noting the record low rainfall and high temperatures experienced in the lead-up to summer had significant impacts, including widespread fires across northern Australia.