So probably set in his ways. Have you had him long?
I like the breed alot but I have seen many with weird fears. One of the nicest dogs I ever knew was a cattle dog named Cowboy, gosh I shoulda kept him instead of finding him a home. Course I see rescued dogs that someone threw away, yours could be a different story.
Usually the way to get a dog less fearful is positive reward during the time that they are scared of whatever it is. What does the dog love? treats? praise? If you know what it loves, start to give that to it when it sees/is around the livestock you want it to be comfortable around. Make sure none hurt or terrify him. Is he new to livestock or is this an old problem? If a dog has a bad experience as a pup with something it can cause a permanent fear that is very hard to overcome. I'd try to build his confidence because it takes gumption to "control" another animal.
Before it can start to herd for you it must know basic commands, has it learned that? Sit, down, stay, come, drop it? If it already knows those commands, I'd start working on "take it" and "get it" regarding things and people, make it a game so it is fun for you too. OFG has her dogs doing a lot of herding for her, you might ask her the techniques she used as she has her dogs doing a lot of herding of specific animals and types of animals, I suggest asking her about that. But I'd get basic commands down first so your dog knows what you are saying when you are trying to direct it. And make it a fun time and practice before you work with the livestock. I know when you are trying to move livestock around the dogs can be really exasperating and I tend to lose it sometimes and just tell them to "get the heck outta there" and do it myself, but I don't have any dogs that are the right type except one who is real old.
I'm thinking these creatures might be new to the dog? You might need to just give him some time. Gimme more details if you want me to try to help you sort it out.
I hope that helps!