VLE: Decision made on Pakenham saleyards

After years of speculation the Victorian Livestock Exchange has determined what’s next for the yards.

Owners of the Pakenham saleyards have voted to keep the site as an operating cattle market, ending speculation the site could be sold and the facility demolished for its high land value.

Earlier today, managing director of the Victorian Livestock Exchange, Brian Paynter, met with Gippsland agents to outline the company’s plans to keep Pakenham open for the long-term.

“We are committed to keeping it as a saleyard,” Mr Paynter told The Weekly Times.

“The best use of the land is as a saleyard facility and that is what it will remain.”

He said they would even consider locking into 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.”

The VLE, which is a privately owned company with shareholder investors, built and opened the Pakenham saleyards in the late 1990s. It now owns and operates the Leongatha saleyards.

In recent years it also took over the running of the Warragul saleyards, before shutting them and demolishing the old yards in a move that angered some local farmers and agents.

The closing of Warragul also fuelled rumours that Pakenham could have been headed for the same fate and it even prompted some Gippsland agents to take steps to purchase land to potentially build their own saleyard facility.

Mr Paynter said the VLE probably should probably have been more proactive about stating their intentions.

“You’re quite right there was a lot of speculation around land value and alternative uses for the Pakenham site, and we probably didn’t do enough to quash those rumours.”

Agents take bids at the Pakenham store sale.

The Weekly Times understands that as VLE has matured as a company, the shareholders are now content with an annual growth and return on investment rather than looking to speculate and make new property deals.

Mr Paynter said the Pakenham saleyards was returning a strong and reliable dividend for shareholders.

“The return on saleyards, not just ours but saleyards in general, is a good return and again that is why there is no better alternative option for Pakenham.”

“We have looked at a range of scenarios and even if numbers dropped to really low levels, which we don’t anticipate, we could still keep it operating but potentially scale it down and use part of the site for something else. But our commitment is to keep the site as an operating saleyard.’’

The initial response to VLE’s announcement has been welcomed by agents.

Anthony Delaney, of Nutrien Delaney Livestock and Property, said Pakenham was an important part of the southern cattle industry.

“I’m glad the future of the yard has been secured,” he said.

Anthony Delaney of Nutrien Delaney Livestock and Property is happy with the decision.

As part of their long-term plans, the VLE has recently invested in two new twin-deck loading ramps, that can be electrically moved to different heights, at a cost of more than $150,000.

It ends a long-running spat with transporters about the safety of unloading and loading stock at the site.

“The addition of twin deck ramps at Pakenham will add a significant safety feature to the yards,” said John Beer, past president Livestock Rural Transport Association Victoria who led the campaign for better ramps.

“The movement of cattle on an off the trucks has been an issue for our Association and this will address the problem.”