General News
14 June, 2024
Saleyard to close
REGIONAL Livestock Exchanges (RLX) announced on Tuesday that it had advised the Corangamite Shire Council that it would be winding down operations by the end of June.
RLX has been operating the site at Camperdown since 2018 and, despite working with local agents and producers to increase throughput, cattle continue to be directed to Hamilton, Mortlake and Colac in preference to Camperdown.RLX chief executive officer Brett Freer said over the past few years the yard has rarely received the stock volumes required each month to meet the minimum throughput numbers in the lease.
“RLX has persisted for several years trying to get more stock through the Camperdown saleyard, however, the combination of ongoing low throughput and the significant capital injection required means that the yard will not be viable in the foreseeable future,” he said.
“We are working with all stakeholders to help find the best solution for their livestock sale needs – whether that is livestock being sold at Hamilton, Mortlake or Colac.”
Mr Freer said Corangamite Shire Council, who own the saleyards on Camperdown-Lismore Road, have been “excellent partners”, but cannot “see any realistic scenario” where the saleyards can continue with financial sustainability.
Corangamite Shire Council Chief Executive Officer David Rae said the decision by RLX, while disappointing, was not unexpected.
“RLX’s decision to cease operation is a business matter outside council’s control,” he said.
“The company has spoken with agents and users of the facility advising of intent to close. Council also plans to speak with agents.
“RLX will be responsible for decommissioning the site and making it safe before handing it over to council.”
Engineering reports have consistently shown that, while the site is safe to operate, substantial capital investment is required in the near term to keep the site operating safely, with even more investment required to bring it up to the standard of a modern facility.
The combination of ongoing low throughput and the significant capital required in the near term means that the Camperdown yard is no longer viable and will not be viable again in future.
Mr Freer said RLX would work with agents on the preferred date for the last sale, which is likely to be Tuesday, June 25.
The truck wash and other uses of the site will also cease operating after that day.
Mr Rae said the closure would not result in any significant lost revenue for council.
He declined to speculate on future of the site before all avenues were thoroughly explored.
“Council will investigate the future use of the site but—given the business realities prompting RLX’s decision—is unlikely to take over management of the saleyard,” Mr Rae said.
“Possibilities include looking for another operator, or identifying alternative uses for the land.
“It will be a lengthy process to determine what other uses may be possible and what will be required to decommission the saleyards and potentially repurpose the land.
“Any decision will have to consider prudent investment of ratepayers’ money into the future, and maximising community benefit.”
