Saleyard upgrades difficult issue

Saleyard auctions remain the most efficient, transparent and probably fairest method we have for the selling/buying of livestock.

A SWOT analysis (Strengths, Weaknesses, Opportunities and Threats) would show a long list under each heading.

But to get public money for their further development is all but impossible, three main reasons being the lack of farmers elected to local government, the loss of political influence over time and the fact that government advisers believe saleyards are an outdated method of transferring ownership

Anyone who has worked in saleyards, or who regularly buys or sells livestock through them will see a list of benefits beyond the generally transparent price setting mechanism they provide.

The simple social aspect or producers meeting and talking with producers and getting off their farms through to market intelligence and comparative analysis are reasons enough to support saleyards, let alone their ability to generate money and business for a community or region.

These days, however pollies and bureaucrats are more likely to support the construction of a visitor centre for a swamp, as in the Yea Wetlands and overlook a generator of business and wealth in the Yea saleyards.

The Yea saleyards have again missed out on funding for a much needed roof, scales and amenities block and must look at alternatives.

The same applies with nearby Euroa where the Strathbogie Shire has engaged saleyard consultant Frank White to suggest a future pathway – from maintaining the current facility to privatisation and a new saleyard.

Both yards are fabulous selling centres with top class sales. The problem is that there are just not enough sales or throughput to generate the dollars for development and dividend.

The development of saleyards elsewhere is also proving difficult although there appears to be some double standards.

Some saleyards have received government funding under various programs and, seemingly, depending on the number of votes are involved in the electorate.

The cost of selling through some yards is also rising to pay for maintenance, even though they appear to be profitable in their own right – indeed they can be the only profitable business in some shires but they often sit on land that can be sold to retire debt, only to lose the income.

Yet there appears to be no shortage of businesses lining up to build new facilities or lease existing yards. There is obviously money to be made in saleyards.

But rising costs can encourage producers to seek other methods of selling.

Some say that selling livestock costs about 10 per cent of the gross in transport, yard dues, scanning costs, weighing fees and commissions.

But the prices negotiated for a direct sale are mostly based on the saleyard price.

Reduce the competition and/or quality of livestock sold in saleyards and there is a real risk that prices will be set on lesser or discounted stock, eventually reducing the private sale price because of the lack of competition.