One of state’s biggest saleyards to close within a year

A major saleyard in Victoria will close within the year, after an increase in land tax forced the owners’ hands. See the details.

One of Victoria’s top five saleyards will close with Pakenham shutting the gates next year.

The news has sent shock waves through the southern cattle industry and blindsided agents who said they had no idea it was coming.

It comes at a time when the national cattle herd has been growing and producers have been looking to the saleyards to offload stock amid issues with delays in supplying stock over the hooks to processors.

Pakenham is Victoria’s fourth biggest saleyard behind Leongatha, Wodonga and Mortlake, and in the past financial year sold 92,485 cattle.

It is owned and operated by the Victorian Livestock Exchange, a privately owned company, and was built in 1997.

VLE managing director Brian Paynter said the decision was not taken lightly, and said a $500,000 increase in land tax had forced their 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 said.

“It is not a decision that was taken lightly - there was always talk of Pakenham’s future but we did not anticipate to have to make the decision so soon.

“Everyone knew Pakenham had a life span but I think there was a sense of surprise when we told the agents this week.”

Pakenham yards is the latest in a series of closures across the decades that closed the Newmarket saleyards at Kensington in 1985, and Dandenong holding its final sale in 1998.

Mr Paynter said vendors who used the Pakenham yards would be encouraged to reroute their stock to VLE’s facility at Leongatha, which was about 85km away.

“It was not an easy decision but it was a clear decision,” he said.

“It will, however, enable us to really develop the Leongatha yards, so that it will potentially be able to pick up all of the capacity of Pakenham, bringing its throughput to 200,000 and even up to 250,000 cattle annually.”

Pakenham agent Anthony Delaney from Nutrien Delaney Livestock and Property said he was “a bit gobsmacked” by the closure of the yards.

“To be honest, where the yards are may as well be in the middle of Melbourne,” Mr Delaney said.

“The yards were unique in terms of what they offered clients who had smaller operations as well as those who ran bigger herds.

“What we will have to do is what’s best for our clients and as long as the producers are in an OK position, that’s the main thing.”

The final sale at Pakenham will be a store fixture held in the last week of June next year.