THE announcement last week that VLE’s Pakenham Saleyards would be closing earlier than expected, in June 2024, has been taken in their stride by South Gippsland’s stock agents.
And they believe that the already expanding Leongatha selling facility could accommodate most if not all of the 100,000 head of cattle set to be displaced when Pakenham closes down.
According to Meat and Livestock Australia, Leongatha was already the biggest cattle selling facility in the state in 2021-22 processing 160,202 head, up from 142,634 the previous year.
In the same year, Pakenham processed 109,048 cattle, a rise of 5.8% on the previous year.
“You’re going to get a different view from the Pakenham agents than you will from South Gippsland, but the announcement that Pakenham is closing wasn’t all that unexpected,” said Terry Ginnane, a director at South Gippsland Livestock P/L at Leongatha.
“Given where it is located, right on the edge of Pakenham, everyone knew it had an end date, but it has probably come a year or two early, that’s all.”
Asked if he agreed with VLE management that Leongatha could handle an extra 100,000 cattle a year, Mr Ginnane said the saleyards was already gearing up to do just that.
“They opened up two new lanes recently and they’re working on another two lanes to bring us up to 124 pens.
“We’ve already had yardings of up to 4000 head so going to 5000 is certainly feasible.
“They’re putting in an extra truck wash bay and extra holding and feeding pens. It’s probably going fairly slowly, but they’ve got people working on it, so it is happening.
“And, being where it is, Leongatha has still got plenty of space for expansion.”
Mr Ginnane said Leongatha was already selling more East Gippsland cattle in recent times, not only as a result of South Gippsland Livestock’s purchase of Greenwood Livestock Pty Ltd in Sale but also because of Leongatha’s record of consistently strong selling results.
But whether the cattle from West Gippsland will continue to come to Leongatha after the closure of Pakenham is another matter.
Managing Director of Alex Scott and Staff, Greg Price, said Alex Scott and its investors were still pursuing the option of establishing a new saleyards at Longwarry.
“We’d have to look at the alternatives for selling cattle from West Gippsland in the meantime, including Koonwarra, Sale and Yea, as well as computer-aided marketing but it is certainly our intention to go ahead and have Longwarry built.”
Mr Price said he believed all existing agents would consider using a selling facility at Longwarry.
“In the coming months we will be conducting a capital raising exercise,” Mr Price said, with the expectation that a new saleyards would cost $20 million to build.
Pakenham, like Leongatha, is owned and operated by the Victorian Livestock Exchange, a privately owned company, and was built in 1997.
VLE managing director Brian Paynter told the Weekly Times that the decision to close Pakenham had not been taken lightly, claiming a $500,000 increase in land tax had forced the firm’s hands.
“At rough figures of 100,000 cattle through the yards annually, we would have been forced to add another $5 per head to yard fees,” Mr Paynter told the Weekly Times.
“Everyone knew Pakenham had a life span but I think there was a sense of surprise when we told the agents this week,” he said.
It may also have come as a surprise to VLE management because just on two years ago, Mr Paynter said VLE was committed to Pakenham for the long term.
“We are committed to keeping it as a saleyard,” Mr Paynter told The Weekly Times Jenny Kelly in November 2021.
“The best use of the land is as a saleyard facility and that is what it will remain,” he said at the time.
Mr Paynter said they would even consider locking in long-term lease deals with the five stock agencies that operate at the facility if agents wanted that level of business security.
“I think what agents really wanted was to know we had a commitment to keep Pakenham open,’ he said.
“If they wanted a 10-year lease with the option of another 10 it is something we would be willing to discuss if it gave them comfort.”
But all that has changed and Pakenham will close, with a final store sale, in June 2024.
