”Operating at a loss”: Council decision on Warrnambool yards fate

The Warrnambool City Council has voted to close the Warrnambool saleyards at a publicly held meeting. Here’s what you need to know.

WARRNAMBOOL saleyards will close at the end of June next year after the local council voted to shut the gates permanently.

The decision on Monday was met with uproar from the public gallery who watched on as of four councillors to three voted in favour of closing the yards as of June 30 next year.

Mayor Debbie Arnott and Deputy Mayor Max Taylor were among the councillors who voted to close the saleyards.

In her statement, Mayor Arnott criticised previous councils for neglecting the saleyards while also citing the financial findings and projections of recent reports in her support of the yards closure.

“Council have been asked to consider investing approximately $5 million to roof all yards, Mayor Arnott said.

“Previous councils have failed to address this issue; they have been unable to make a decision and therefore have kicked it down the road.

“This is not the only investment these yards would require to bring it to best practise and become a modern high performing facility.”

Numbers at the Warrnambool saleyards have steadily declined since 2013 from a once-off high of 104,000 head to a low of 61,580 head for the 2022 financial year.

“If council were to invest $5.5 million in new capital expenditure that is only for the roof, and maintenance capital expenditure of $4 million over 20 years - for council to reach a breakeven point the throughput has two double,” Mayor Arrnott said.

She said to break even, an additional 50,000 cattle would need to go through the yards annually, or 114,000 in total.

About $1.34 million over the past five years has been spent on the historic Warrnambool saleyards.

The Warrnambool saleyards are desperately in need of structural upgrades to remain viable. Picture: Andy Rogers

At its peak, the South West Victorian Livestock Exchange had a throughput of more than 100,000 cattle and ranked in the top five selling centres in Victoria for cattle, but in recent years the yards have been operating at a loss.

Warrnambool stock agents association president Kieran Johnstone said agents were “sick and tired of fighting with (the council) all the time and we want them to stand up and back us” .

“We want the yards to keep running because it’s a viable and profitable business for the city,” Mr Johnstone said.

“There’s a lot of jobs on the line and a big economic impact (if it closes).