Edward River Council last week tabled its Deniliquin Saleyards Strategic Plan which, in the action plan, recommends moving toward divestiture and closure of the Deniliquin cattle yards once the existing lease for the facility expires this year.
It cites declining usage as a key reason, indicating necessary upgrades would be a financial risk.
It will mean investment in the saleyards complex will be directed predominantly to the sheep yards.
It is despite repeated requests from the Associated Agents, its individual members and local cattle producers for council to reconsider.
Deniliquin Associated Agents member Jason Andrews said the first thing that needs to change is for people to stop thinking of the sheep and cattle yards as separate entities.
He said council also needs to reinvestigate the potential revenue of the saleyards more thoroughly, suggesting the rent paid to council by the saleyards operators of about $12,000 a year is only a fraction of the fees paid by users.
‘‘We need to stop thinking of it as the cattle yards and the sheep yards — it is one whole sales complex,’’ Mr Andrews said.
‘‘Like any business, you will have some sections that perform better than others. You don’t just simply close that part of the business.
‘‘So why are we closing one part of the complex because there is a perception there is no money to be made from it?
‘‘Deniliquin and district is a primary production based community, and some ratepayers are now expected to pay more yet council is closing down one of the only assets they use.’’
Mr Andrews said the impact the closure of the saleyards will have on the local economy, and on employment, is also being overlooked.
‘‘If your producers go to Finley, Echuca or Shepparton to sell their cattle, they’re going to spend their money there too.
‘‘Having fewer assets also impacts on our ability to attract new residents and new businesses to town, and of course existing businesses may be affected by staff reductions if the yards close.
‘‘We have already lost so much in this area, let’s not lose more; because once it’s gone it will never come back.’’
The strategy estimates basic maintenance at the cattle yards to bring it up to standard would require an investment of between $500,000 and $1 million, based on estimated unit costs from Cardno Engineers.
A full scale upgrade of the facilities has been costed at between $1.5 million and $2 million, on top of a proposed investment of between $750,000 and $1.5 million for the sheep yards.
While indicating the cattle yard upgrades should be considered in addition to the divest and close option, the report also states ‘‘it is apparent that the current income to council generated from the saleyards is not enough to deliver a capital works program at the cattle yards’’.
But Mr Andrews has questioned the revenue figures, suggesting the user fees far exceed the rent paid to council for the facility and therefore skewing council’s perception of its value.In an effort to support their requests for the cattle yards to remain open, the Deniliquin Associated Agents is collating figures relating to user fees. Mr Andrews said Elders Rural Services Deniliquin alone has paid $402,705.41 in user fees from 2018 to today, and Nutrien Ag’s user fees between 2017 and today is $265,248.29. Figures for Arentz & Barker Southern Riverina Livestock & Property were not available at the time of going to print yesterday.
Council announced its intention to close the cattle yards in November last year, and general manager Phil Stone said the report ‘‘backs the decision of the council, based on a significant reduction in cattle sales in Deniliquin and increased competition at nearby selling centres’’.
‘‘Sadly, cattle numbers don’t appear what they used to be — the demand for a weekly cattle sale in Deniliquin has not been there for many years,’’ he said.
‘‘Even the planned fortnightly sales are sometimes cancelled due to low numbers.’’ Mr Stone said council remained committed to improving the Deniliquin sheep saleyards and would continue to work with the livestock industry to ensure Deniliquin remains a popular and well supported selling centre for sheep.
Copies of the strategic plan are available at Deniliquin library or the council’s website, with submissions open for six weeks instead of the standard 28 days.
16°C