Impact of Victoria Livestock Exchange Closure on Cattle Transport and Sales

It has been nearly a year since the Victoria Livestock Exchange (VLE) in Pakenham ceased operations, yet disruptions to cattle movements and transporters continue to plague the industry. The closure of this facility, which once held its last cattle sale in June 2024, was a result of escalating land taxes and rates, rendering its continued operation unviable.

Impact on Cattle Movements

According to Anthony Delaney, Manager of Elders Delaney Livestock and Property, the closure has forced cattle into other saleyards, which are now grappling with increased demand and capacity constraints. “It’s had a major impact, and I think we’re only really now 12 months in seeing exactly how pivotal Pakenham or a Melbourne central market was to the industry,” he stated.

Delaney noted that the congestion at other sale centers could lead to financial challenges for producers. “Quite possibly categories of cattle are going to market for logistic reasons which may not be the best financial decision,” he added. “Every country market with monthly sales is now at capacity.”

Operational Challenges for Producers

The loss of VLE has prompted a need for more careful planning, as producers are now facing delays in moving cattle. “We need to be organized and be thinking about cattle movements weeks in advance,” Delaney emphasized. Currently, cattle movements could take two to three weeks, a significant shift from the previous operational model.

The closure of a major market that typically processed over 100,000 cattle annually has created a significant void in the region, affecting the overall Victorian livestock industry.

Increased Pressure on Transporters

Transporters are feeling the pressure as well, mustering the same volume of cattle over fewer sale days. Rob Hodge from Hodge Livestock Transport noted, “It is stretching the transporters because the cattle need to be moved in a day rather than two days.”

Another challenge has been the closure of the truck wash facility at VLE. The absence of a local wash facility means transporters now have to traverse through the city, adding substantial time to the logistics process. “It’s adding an extra couple of hours just to wash out,” Hodge explained. This additional time has reduced trip frequencies, notably from Tasmania to the meatworks, detracting from operational efficiency.

Future Prospects: Longwarry Saleyards

In light of these challenges, there is a forward-looking plan to establish new saleyards at Longwarry. This project, named the West Gippsland Livestock Exchange, is full steam ahead, with capital raising initiatives set for the next financial year. Greg Price, Chairman of the Longwarry Saleyards, emphasized the urgent need for such facilities, stating, “It has become painfully obvious that a facility in West Gippsland close to processors is needed.”

The projected cost for the build exceeds $30 million, with expectations for completion in about two and a half years. The new saleyards aim to mirror the capacity and functionality of the former VLE, ensuring that logistical issues faced after its closure can be effectively mitigated.

Conclusion

The closure of the Victoria Livestock Exchange has sent ripples through the cattle movement and transport sectors in Victoria. As industry players adapt, the establishment of new facilities like the West Gippsland Livestock Exchange could prove vital in restoring efficiency and capacity to the region’s livestock markets.