Increasing urbanisation has been raised as a key issue behind the impending closure of the Pakenham saleyards.
Nearly 50 farmers, transporters, stock agents and council representatives attended a Victorian Livestock Exchange information day on the planned closure of the saleyards on June 30.
Managing director Brian Paynter said while land tax and rate increases were important factors behind the closure of the facility, "urban creep" had seen the yard's catchment slowly decline over the past decade and longer.
"Pakenham was built in a paddock with no freeway," he said.
"It now sits in the middle of a densely industrialised zone adjacent to a major freeway system and with ever expanding housing estates in close proximity.
"This expansion of urbanisation is accelerating and will continue to adversely impact the facility's historical rural catchment."
Mr Paynter said in VLE's assessment, simply passing on increased government charges to users was not a realistic option.
"The urbanisation of the area means further land tax hikes are inevitable, such that we would be continually passing on costs though ever-increasing charges," he said.
"This underlying problem is not going away, and we have accepted that fact."
The meeting was addressed by founding shareholder Graham Osborne, while chair Chris Sleigh outlined the commercial reasons for the closure.
Mr Paynter said the VLE was undertaking extensive work at Leongatha, to ensure Pakenham users would be comfortably accommodated at an expanded facility.
"This includes substantial capital works and long-term planning to significantly expand the throughput capacity and facilities of Leongatha," he said.
"The fee rates at Leongatha are materially lower, reflecting the lower costs of operating in that location."
Leongatha was a strong farming area, zoned rural and a long distance from the urban creep that has steadily reduced Pakenham's throughput, he said.
"Therefore, those transferring business to Leongatha can look forward to operating in a stable rural environment for generations to come," Mr Paynter said.
"We would expect most stakeholders to agree that Leongatha is a far more suitable long-term site for operating a saleyard than the industrialised landscape of modern day Pakenham."
