Kelly Country: Pakenham saleyards spells it out

THE Pakenham saleyards are not closing ... yet. But the events of late last week raise questions the overall health and future of the saleyard auction system, writes JENNY KELLY in KELLY COUNTRY.

THE Pakenham saleyards are not closing ... yet.

But the events of late last week raise questions the overall health and future of the saleyard auction system.

Wayne Osbourne, manager of the Victorian Livestock Exchange, which operates saleyards at Pakenham, Leongatha and Sale, made the unusual step of contacting the media late on Monday to declare Pakenham was staying open for the foreseeable future.

It followed the “‘rumour mill” going into overdrive after the VLE sent an invitation to stock agents headed along the lines of “The future of the Pakenham saleyards”.

Pakenham opened in January 1999 amid fanfare as one of the industry’s most modern undercover selling centres.

It is in the top 10 cattle saleyards in the state, selling primes on Monday and Tuesday, and store cattle fortnightly on Thursday.

Mr Osborne said the company met with senior stock agent representatives last week.

But he said no decisions or ultimatums had been put to agents, whose businesses were closely tied to the centre.

He told The Weekly Times there was no price offer on the table for the site at Pakenham and no time frame had been set for when, or if, the site would be sold or shut down.

“The rumour that we told agents they had two years to get out is just absolute crap,’’ Mr Osborne said.

“We just wanted to start a conversation and get feedback.’’

It has long been accepted that the VLE built Pakenham with the long-term view of capitalising on site value as urban growth pushed out of Melbourne. The land is zoned light industrial.

“There is the question of land value and competing interests for the land. Urban spread and industry will push us out at some stage’’ he said.

Mr Osborne said they wanted some clarity around what was happening in the livestock industry around Gippsland, as numbers at sales dropped.

There were just 435 cattle yarded at Pakenham on Monday, and figures from the National Livestock Reporting Service show the market has been under 500 for many weeks this season.

Mr Osborne said at its peak Pakenham had a throughput of about 150,000 cattle (stores and primes) per year, ­compared with about 93,000 in the past financial year.

“Fat cattle numbers appear to be falling away at every yard. Is it the hangover from the drought, or is something else occurring,’’ he said.

“Are farmers looking to sell more cattle direct? What do they consider to be appropriate fees? “What are people saying to their agents in regard to selling methods and how does the VLE sit in the overall picture going forward.’’

Just this week The Weekly Times agents at Bendigo said store demand was quiet because more light lambs were being listed and purchased off AuctionsPlus.

The other issue saleyards need to consider is volume and livestock selection for buyers. Mr Osborne said the idea of combining the Monday and Tuesday prime cattle sales at Pakenham into one sale had been discussed.

Saleyards that persist in selling weekly with limited numbers do no favours for farmers selling stock as the buying field was weakened.

Mr Osborne said they would await feedback from agents as to possible changes at Pakenham. He said one aim was to develop a plan for when the saleyard closed so that all involved could transition smoothly.