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GYMPIE SALEYARDS STRATEGIC PLAN GYMPIE REGIONAL COUNCIL JUNE 2019

GYMPIE SALEYARDS STRATEGIC PLAN

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DOCUMENT CONTROL

Job ID: J000911

Gympie Saleyards Strategic Plan Gympie

Regional Council

Sherry Lowe

Martin Drydale

[email protected] 07 3831 0577

Gympie Saleyards Strategic Plan Draft 1.0

6/6/2019 5:28 PM

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Version Date Reviewed Approved WD1.0 24 January 2019 MD AP Draft V1.0 21 March 2019 MD AP Final V1.0 2 May 2019 MD AP Final V2.0 6 June 2019 MD AP

Disclaimer:

Whilst all care and diligence have been exercised in the preparation of this report, AEC Group Pty Ltd does not warrant the accuracy of the information contained within and accepts no liability for any loss or damage that may be suffered as a result of reliance on this information, whether or not there has been any error, omission or negligence on the part of AEC Group Pty Ltd or their employees. Any forecasts or projections used in the analysis can be affected by a number of unforeseen variables, and as such no warranty is given that a particular set of results will in fact be achieved.

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EXECUTIVE SUMMARY

PURPOSE OF THE STRATEGIC PLAN The Gympie Saleyards Strategic Plan was developed to identify and understand the future development and investment needs of the Gympie Saleyards and to examine how the Saleyard can evolve as markets and technologies change and new operating environments are experienced. The Plan also examined and explored future operational structures and options to facilitate the provision of saleyards in the Gympie region into the future.

KEY FINDINGS

Industry

• The beef cattle industry, including slaughter and live exports, is the single largest contributor to Australian agriculture, with a gross value of production of $11 billion in 2014–15.1 The national herd, estimated at around 25 million head in 2014–15, is largely concentrated in the eastern states.

• The industry is highly sensitive to international market factors, with around 68% of beef produced for the export market (MLA, 2017). Irrespective of the final destination, (i.e. export or domestic consumption) market prices are impacted by global market factors.

• The last ten years has been a period of restructuring in the Australian saleyards sector with major rationalisation of older, local government owned and operated facilities. The restructuring has been in response to several drivers of change including those specific to the agricultural sector as well as broader macro trends in policy, market and environmental factors. Additionally, where a regional selling centre can operate commercially, there is a reduced need for local government to address any pre-existing market failure. These trends are expected to continue with the establishment of a range of regional and privately-owned selling centres.

• In the next 10 years, the market outlook for the Australian livestock industry is positive albeit subject to any significant domestic and international uncertainties including rainfall levels, pest and disease outbreaks, and future trade relations.

Economic Contribution

The Gympie Saleyards is estimated to support $12.6 million in output for business within the Gympie local economy, of which $5.6 million is generated directly (including facility operations, stock movement, agent fees and spend of attendees). This activity supports, both directly and through flow-on impacts $6.6 million in GRP, $3.6 million in wages and salaries for workers and supports employment for approximately 50 people throughout the region.

Facility Operations

Gympie is the largest of the three sub-regional selling centres in the catchment. Into the future, it is likely that many of the smaller yards will close. It is also expected that one of the sub-regional centres will grow in prominence, capturing a greater share of the regional market, which will likely lead to at least one of the sub-regional centres closing over the medium to longer term. Key to securing the future for one of the sub-regional centres will be the presentation of state of the art, best practice facilities, such as those gaining prominence in NSW and Victoria

Since 2013 the Gympie Saleyards has facilitated the sale of just over 234,000 head (approximately 47,000 head p.a.). Over 80% of annual sales are through the liveweight sale and around 15% of sales are calves.

1 Australian Bureau of Agricultural and Resource Economics and Sciences, Agricultural commodities, September quarter 2016, vol. 6 no. 3, ABARES, Canberra, 2016.


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Facility Condition

The Gympie Saleyards was constructed many years ago and is in need of an upgrade to meet operational and functional requirements, address workplace health and safety issues and address potential vehicular access issues. A Condition Assessment was conducted using a 1-5 scale against MLA saleyard criteria and standards. The outcome of this assessment is summarised in the following table.

Table 1-1. Condition Assessment Outcomes

Assessed Item Score Safety of animals 4 Safety of humans 3 Flow of livestock 2 Animal welfare 3 General condition of infrastructure 2 Capacity of selling area 2 Size of selling pens 4 Environmental management 1 Pens – dust/mud/faeces mitigation 4 Pens – provision of feed and water 4 Shelter 2 Vehicular access 1 Loading and unloading area 2 Truck wash 1 Access to premises 1

Note: 1=Not Provided/ Very Poor, 2=Poor, 3=Acceptable, 4=Good, 5=Very Good Source: StruXi Design

Stakeholder Opinions

An intercept survey captured 80 valid surveys from Saleyard users including buyers, agents, vendors and transport providers, seeking views on required improvements and spending activity on sale days. A link to the same survey was placed on the Council website attracting a further 120 responses. The top five items prioritised by respondents include:

• Yard capacity and/or general infrastructure (e.g. pens)

• Roof over yards

• Parking

• Amenities

• Vehicle accessibility

Key comments findings made during consultation include

• Any new site (i.e. a new greenfield saleyard facility) could be developed as a ‘Livestock Precinct’ incorporating saleyards, abattoir/meatworks, feedlots, agricultural retail supplies stores and veterinary services.

• The Gympie saleyards have a well-established reputation for good produce and achieving good prices for sellers.

• It is expected that similar number of throughput of livestock to that currently being achieved will be experienced into the future.

• Gympie Saleyards niche market is servicing smallholders/ hobby farmers along the regional coastal strip rather than larger sellers/ buyers. Marketing may be required to significantly change this.

• Horse sales are expected to continue at the current rate of 3-4 sales per year.


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Required Works

There were two packages of works identified as being required to address the infrastructure needs of the existing saleyard:

• High Priority Improvements: Summarising the immediate needs of the facility that need to be addressed and rectified as soon as possible to maintain operations and brand presence over the next 10 years. These total just over $1.0 million

• Lower Priority Improvements: Summarising the works required to bring the facility up to the minimum expected standard to remain viable as a livestock marketing facility over the next 5-10 years.

It is important to note that neither package of works guarantees the forward use and suitability of the site beyond 10 years due to encroachment and other operational constraints.

Financial Performance

The Gympie Saleyards facility currently operates at a net financial loss to Gympie Council ($50,000 in the 2018-19 FY). Implementing the high priority improvements (at a cost of just over $1.0 million, excluding the lower priority improvements at a cost of $5.3 million) results in a degradation of the operating position to a projected loss of between $150,000 and $195,000 by 2023-24.

External Influencing Factors

Section D of the Bruce Highway is nearing completion. This upgrade will see the separation of long-distance traffic from local traffic, including haulage of animals destined for the Saleyard. With the completion of the by-pass, there is an opportunity to relocate the Saleyard to a more accessible location for heavy vehicles, avoiding urban areas and providing a new contemporary and efficient saleyard. There is strong local support for this to include a broader agribusiness precinct.

FUTURE OPTIONS In considering the long-term future of the Saleyard, the following options for the future of the Saleyard have been identified:

Do Nothing:

• Decision is not to re-locate the Saleyard but to maintain current operations on the current site where operational constraints do not exceed practical thresholds.

• There is minimal ongoing maintenance to maintain the functionality of the existing infrastructure and to achieve minimum compliance with standards and regulation.

• No further capital replacement or investment is made in the facility (Beyond what was invested as the immediate recommendations of this Plan).

• Sales continue at the current site.

• Likely outcome is a declining use of the Saleyard as users seek more accessible and modern Saleyards elsewhere with the saleyard closing within 5 years.

Upgrade the Existing Saleyard:

• Decision is not to re-locate the Saleyard but to maintain current operations on the current site.

• The required level of investment in ongoing maintenance to maintain the functionality of the existing infrastructure and to meet or exceed compliance with standards and regulation.

• Further capital replacement or investment is made in the facility (as per the longer-term recommendations made in this Plan).

• Sales continue at the current site.


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• Likely outcome is a slow declining use of the Saleyard as usage of the site becomes more difficult due to urban encroachment and users seek more accessible and modern Saleyards elsewhere, particularly if one of the other sub regional centres invests and markets well. This scenario sees the saleyard closing within 10 years.

Cease Providing the Service:

• Decision is not to continue with Saleyard operations at a point in time in the future.

• There is minimal ongoing maintenance to maintain the functionality of the existing infrastructure and to achieve minimum compliance with standards and regulation.

• No further capital replacement or investment is made in the facility.

• Sales continue at the site until the designated date of closure.

• Likely outcome will be a rapidly declining use until final closure as buyers and sellers seek alternative Saleyards elsewhere.

Immediately Relocate the Saleyard to a New Site:

• Decision is not to continue with current site of the Saleyard operations (excluding and not investing in the immediate and recommended capital works of this Plan) and to immediately seek to identify a suitable alternative site and commence construction of a new Saleyard facility as soon as possible.

• There is minimal ongoing maintenance to maintain the functionality of the existing infrastructure until the new Saleyard is constructed.

• No further longer-term capital replacement or investment is made in the current facility.

• Sales continue at the current site until the date of closure.

• Significant immediate investment is made in acquiring land and constructing a new contemporary Saleyard facility, which is close to the confirmed location of the by-pass.

• Likely outcome is maintaining the current level of activity at the current facility with an increasing use of the new Saleyard once operations commence.

• Opportunities to explore alternative operating models.

Continue with Current Saleyard and then Relocate to a New Site:

• Decision is not to continue with current site of the Saleyard operations beyond the next 5-10 years, aligning with the identification of a suitable alternative site and construction of a new Saleyard facility.

• There is minimal ongoing maintenance to maintain the functionality of the existing infrastructure (i.e. the immediate and recommended capital works outlined in this Plan) and to achieve minimum compliance with standards and regulation.

• No further capital replacement or investment is made in the current facility.

• Sales continue at the current site until the date of closure.

• Opportunities to explore alternative operating models.

• Significant investment is made in acquiring land and constructing a new contemporary Saleyard facility which is close to the confirmed location of the by-pass, and which can be co-located with complementary private sector services.

• Likely outcome is maintaining the current level of activity at the current facility with an increasing use of the new Saleyard once operations commence.

RECOMMENDATION The following recommendations are made and built in response to the key findings resulting from the Plan.


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Recommendation 1: Commence planning for a new greenfield site including provision for an agribusiness precinct

Rationale: It is important that planning for a new greenfield site commence as soon as possible, due to the:

• Current state of facilities

• High level of capital required to bring the current facility up to a minimum standard

• The high likelihood of the facility not being able to continue operations beyond a 10-year window due to urban encroachment amongst other issues

• The pending need for a larger sub-regional selling centre

• Gympie’s standing as the largest of the three sub-regional selling centres

There is support for the establishment of an agribusiness precinct in the region and co-location makes logistical and development sense.

Recommendation 2: Develop a high-level pre-feasibility study to support the development of a new facility on a greenfield site

Rationale: Any significant investment in a new facility needs to respond to market demand and be a commercially viable venture. Key aspects to be considered in the pre-feasibility include the need to:

• Identify a range of potential sites and a preferred site

• Develop a preliminary functional design for the site and order of magnitude engineering and capital costs

• Develop a financial assessment to ensure it is a viable commercial concern

• Summarise the planning and environmental approval processes required to develop

• Develop investment attraction collateral summarising the opportunity.

The next step should be a pre-feasibility and not a detailed feasibility as any investor will need to undertake their own due diligence and will have preferences for layout and operational details. The pre-feasibility and business case should focus a concept on a specific site or sites, rather than a specific design

Recommendation 3: Seek private sector interest in the construction and/ or operation of the facility

Rationale: A greenfield site will require significant investment, and it is recommended Gympie Regional Council seek interest and investment from the private sector to fund the construction of the facility. Incentives may be required to secure the land and or the capital to construct the facility.

Local Governments historically became engaged in the construction and operation of saleyards in response to a market failure to drive economic growth in regional areas in Australia. There are many successfully owned and operated saleyards in Australia. Where there is no longer any market failure present the imperative for local government to be involved diminishes significantly. Through a market sounding exercise. Council’s role should be primarily to:

• Identify a preferred site(s)

• Develop a high level (in principle) investment attraction collateral

• Identify and clarify any available investment incentive Gympie Council can bring to the establishment of the facility

• Actively market this collateral to potential investors (local, interstate and institutional)

• Plan for future reuse and remediate accordingly

Recommendation 4: Minimise capital expenditure on the current facility to ensure operations are continued and minimum health and safety measures are addressed.


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Rationale: Should the preceding recommendations be adopted it is possible a new facility would be constructed in the region within the next 5 years. However, to ensure a successful new facility it is important to maintain the current market at a minimum if not grow it. It is therefore critical that operations at the current facility are maintained, however, given the short-term nature of the future use of the current facility, it is unlikely the facility will recover any significant capital spend. Critical works could be limited to addressing the catwalk over existing holding pens (estimated at $43,000) (with no alteration to the current pen configuration) to aid safety and any other aspects of the High Priority Improvements, where there is sufficient budget.


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TABLE OF CONTENTS

DOCUMENT CONTROL .......................................................................................................................................... I

EXECUTIVE SUMMARY ........................................................................................................................................ II

TABLE OF CONTENTS ...................................................................................................................................... VIII

1. INTRODUCTION ............................................................................................................................................ 1

1.1 BACKGROUND........................................................................................................................................................................................... 1

1.2 PURPOSE OF THIS REPORT................................................................................................................................................................... 1

1.3 APPROACH ................................................................................................................................................................................................ 1

2. LIVESTOCK INDUSTRY ............................................................................................................................... 3

2.1 NATIONAL HERD ...................................................................................................................................................................................... 3

2.2 KEY INDUSTRY TRENDS ......................................................................................................................................................................... 3

2.3 INDUSTRY OUTLOOK ............................................................................................................................................................................... 4

2.4 LIVESTOCK SELLING TRENDS............................................................................................................................................................... 5

3. GYMPIE SALEYARDS SUPPLY CATCHMENT ........................................................................................... 7

3.1 LOCATION & SUPPLY CATCHMENT ..................................................................................................................................................... 7

3.2 HISTORICAL THROUGHPUT ................................................................................................................................................................... 8

3.3 COMPETITION ........................................................................................................................................................................................... 9

3.4 CURRENT AND FUTURE CAPACITY AND DEMAND ......................................................................................................................... 10

3.5 PRICING ................................................................................................................................................................................................... 10

3.6 REGIONAL ECONOMIC BENEFIT ......................................................................................................................................................... 11

4. CURRENT SITE LAYOUT & FACILITIES ................................................................................................... 14

4.1 KEY FACILITIES ...................................................................................................................................................................................... 14

4.2 SURROUNDING LAND USE ................................................................................................................................................................... 14

4.3 EXISTING SALEYARD IMPROVEMENTS.............................................................................................................................................. 18

4.4 SAFETY AND SECURITY ........................................................................................................................................................................ 18

4.5 TRAFFIC MOVEMENTS AND FLOW ..................................................................................................................................................... 18

4.6 SERVICES ................................................................................................................................................................................................ 20

4.7 EQUIPMENT ............................................................................................................................................................................................. 21

4.8 WORKPLACE HEALTH AND SAFETY .................................................................................................................................................. 22

4.9 CURRENT FACILITIES SUMMARY ....................................................................................................................................................... 22

4.10 CONDITION ASSESSMENT ................................................................................................................................................................... 23

5. STAKEHOLDER ENGAGEMENT ............................................................................................................... 25

5.1 INTERCEPT AND ONLINE SURVEYS ................................................................................................................................................... 25

5.2 EXTERNAL STAKEHOLDERS ................................................................................................................................................................ 26

6. 10-YEAR FINANCIAL PLAN ....................................................................................................................... 28

6.1 PRIORITISATION OF IMPROVEMENTS ................................................................................................................................................ 28


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6.2 CURRENT OPERATIONAL PERFORMANCE ....................................................................................................................................... 31

6.3 PROPOSED CAPITAL COSTS AND FUNDING .................................................................................................................................... 31

6.4 OPERATING REVENUE .......................................................................................................................................................................... 32

6.5 CASHFLOW .............................................................................................................................................................................................. 33

6.6 ECONOMIC BENEFIT.............................................................................................................................................................................. 34

7. LONG TERM STRATEGY ........................................................................................................................... 35

7.1 LOCATION ................................................................................................................................................................................................ 35

7.2 SUMMARY OF OPTIONS ........................................................................................................................................................................ 36

7.3 RECOMMENDATIONS ............................................................................................................................................................................. 37

7.4 FURTHER CONSIDERATIONS................................................................................................................................................................ 38

REFERENCES...................................................................................................................................................... 40

APPENDIX A: LIVESTOCK SELLING TRENDS ................................................................................................. 41

APPENDIX B: INPUT-OUTPUT OVERVIEW ....................................................................................................... 45

APPENDIX C: SURVEY QUESTIONS ................................................................................................................. 50

SECTION A: ABOUT YOU .................................................................................................................................................................................................................... 50

SECTION B: SPENDING IN GYMPIE ON A SALEDAY ................................................................................................................................................................... 51

SECTION C: CONTRIBUTIONS TO GYMPIE’S SALEYARD DEVELOPMENT ........................................................................................................................... 52

SECTION D: PROFILE ............................................................................................................................................................................................................................ 53

APPENDIX D: SURVEY RESPONSES ................................................................................................................ 54

APPENDIX E: GRANT FUNDING OPPORTUNITIES .......................................................................................... 59

APPENDIX F: CASHFLOW STATEMENTS ......................................................................................................... 60

APPENDIX G: MODEL CODE OF PRACTICE FOR LIVESTOCK SALEYARDS AND LAIRAGES ................... 62


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1. INTRODUCTION

1.1 BACKGROUND The Gympie Saleyard is owned by Gympie Regional Council and holds regular calf, prime and store sales. Other special sales (i.e. stud sales, horse sales) are held at different times throughout the year.

Like many regional saleyards, there is significant sunk infrastructure cost in the saleyard, the majority of which was constructed in the 1950s and 1960s. Saleyards generally are currently operating in an environment of increasing compliance requirements covering environmental, workplace safety, animal welfare considerations and legislation. These compliance requirements increase overheads, operating and maintenance requirements and costs, and is set against a backdrop of historical challenges against price and fee increases for what is regular, albeit modest use.

Saleyards are also a place of social interaction and drivers of regional economic activity, which contribute to local economic activity and social cohesion, meaning that there are broader community, health and wellbeing and economic considerations associated with the operation of a Saleyard.

1.2 PURPOSE OF THIS REPORT Developing a Strategic Plan is a dynamic process with the objective of optimising the use and future value of assets. The aim of the Plan is to demonstrate how the Saleyard can evolve as markets and technologies change and new operating environments are experienced. Within the livestock industry, the saleyards component is sensitive to factors influencing the volume of livestock produced, with market prices and product quality also impacting upon saleyard revenues.

The medium to longer term drivers of the industry include rising demand, constrained global supply and increased livestock trade, which by association support a favourable outlook for the livestock and saleyards sector. Climate variability will continue to have a considerable impact on the sector from year to year, influencing both the number and quality of livestock supplied.

The Saleyard is currently situated in a sub-optimal position with challenges arising due to urban encroachment, heavy vehicle transport and access issues and ageing infrastructure. A strategic review of options for the current site is a pre-requisite to determine an appropriate future strategy.

The aim of the Plan is to, through appropriate research and stakeholder engagement, develop a detailed Plan to provide the Gympie saleyards with firm strategic direction and investment planning for the next 10-20 years.

1.3 APPROACH The approach that this project has adopted is to:

• Provide a market analysis of the Gympie Saleyards Business (industry trends, local trends).

• Assess the existing infrastructure to determine its suitability in meeting current and short-term needs.

• Identify any business requirements to meet the saleyards market.

• Assess the environmental legislative requirements for managing the site including but not limited to:

o Stormwater Management

o Effluent Management

o Livestock Management.

• Consider options for the future of the current Saleyards site including considering any:

o Required Investment

o Comparison of pricing models with similar sized saleyards


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o Return on Investment (Direct and Indirect)

o Socio-economic impact assessment

o Recommendations on viability of business moving into the future.

• Based on the outcome of the options analysis, prepare a Site Layout Design to meet market needs including any required infrastructure and component upgrades/changes.

• Prepare a 10-year investment plan, including scenario analysis

• Identify any Federal and/or State grant opportunities.


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2. LIVESTOCK INDUSTRY

2.1 NATIONAL HERD The beef cattle industry, including slaughter and live exports, is the single largest contributor to Australian agriculture, with a gross value of production of $11 billion in 2014–15.2 The national herd, estimated at around 25 million head in 2014–15, is largely concentrated in the eastern states, as shown in Figure 2-1.3

Figure 2-1. Australian Cattle Numbers by State

Source: Australian Bureau of Statistics.

The following sections consider the key economic trends and drivers impacting on the cattle livestock industry and the implications for the Gympie Saleyards.

2.2 KEY INDUSTRY TRENDS The cattle and beef sector is the single largest contributor to the annual value of Australian agricultural production. More than half of Australian farms produce beef cattle, representing $11 billion (or approximately 21 per cent) of agricultural production value in 2014–15. The profitability of cattle farms varies greatly, with independent research showing that the size and productivity of cattle farms are important factors that determine profitability.

2 Australian Bureau of Agricultural and Resource Economics and Sciences, Agricultural commodities, September quarter 2016, vol. 6 no. 3, ABARES, Canberra, 2016.

3 Australian Bureau of Statistics, Agricultural commodities, Australia, 2014–15, cat. no. 7121.0, ABS, Canberra 2016.


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Over the last 10 years, however, the Australian livestock industry has endured some challenging conditions with a mix of positive and negative industry drivers as shown in Table 2-1.

Table 2-1. Australian Livestock Conditions

Positive Impacts Negative Impacts

• Global consumption increasing

• Further development of high-value niche markets e.g. Wagyu, Halal and organic production

• Weaker Australian dollar

• Increasing market access through Free Trade Agreements

• Removal of international tariffs

• Severe long-term drought

• Failed wet season in key Queensland production areas

• Temporary ban on live exports

• Lower prices as a result of higher sales volumes due to holds on re-stocking plans

• Increasing production from major international competitors

• Volatility in input prices such as electricity, fuel and labour

• Lack of skilled and semi-skilled livestock and meat processing labour

The industry is highly sensitive to international market factors, with around 68% of beef produced for the export market (MLA, 2017). Irrespective of the final destination (i.e. export or domestic consumption) market prices are impacted by global market factors.

Figure 2-2. Australian Cattle Prices

Source: MLA (2018a)

2.3 INDUSTRY OUTLOOK Overall, the market outlook for the Australian livestock industry is positive albeit subject to several significant domestic and international uncertainties including rainfall levels, pest and disease outbreaks, and future trade relations.


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A summary of the key drivers influencing the livestock industry outlook is provided in Table 2-2.

Table 2-2. Summary of Key Drivers and Outlook

Factor Outlook Global Factors

Global Meat Consumption Strong due to emerging market population and income growth/ Global Meat Production While production is currently recovering in major production areas (US

and Brazil) the longer term outlook remains constrained due to reduction in agricultural land and climate variability.

Trade Relations Subject to ongoing negotiations and commitment to freeing trade. Deteriorating trade relations between the US and China may impact the future growth of US beef exports, with flow on implications for Australian export demand

Pests/Diseases Uncertain subject to international standards and regulations. Australia’s Foot and Mouth Disease (FMD) free status is a significant trade advantage vs FMD endemic producers such as Brazil, Argentina and India (carabeef).

Australian Dollar Softening due to Australia’s comparably low interest rates global uncertainty regarding US and Chinses trade relations.

National Factors

Input Prices (Fuel, energy, feedstock)

Subject to significant uncertainty, with recent fuel price rises and volatility in electricity prices.

Labour Costs Pressures easing due to relatively modest wages growth nationally. Pest/Diseases Uncertain subject to local/Australian standards and regulations. Local/ Regional Factors

Rainfall/Growing Conditions Uncertain with increasing risk of variability, regional producers currently facing drought/flood conditions.

Pest/Diseases Uncertain subject to local/Australian standards and regulations, with any national disease outbreak likely to impact the market for local production

Overall Market Outlook Strong subject to key production and market uncertainties Source: AEC

2.4 LIVESTOCK SELLING TRENDS The last ten years has been a period of restructuring in the Australian saleyards sector with major rationalisation of older, local government owned and operated facilities in particular. The restructuring has been in response to several drivers of change including those specific to the agricultural sector as well as broader macro trends in policy, market and environmental factors. Key trends observed are summarised in Table 2-3 with more detail provided in Appendix A.

Table 2-3. Summary of Livestock Selling Trends

Trend Description Implications Policy Factors

Animal Welfare Currently provided as guidelines and not currently enforceable but are facing increased consumer and industry demands to be legislated

Pen sizes/ capacity, flow logic, designs to minimise risk to livestock and people

Environmental Increase in environmental legislation and enforcement activity

Appropriate storm and waste water management systems and processes in part through roofing design

Chain of Responsibility

Heavy Vehicle National Law (HVNL) changed to ensure all parties have a duty to ensure the safety of transport activities

Safety management systems and controls required to be in place, affecting business practices, training procedures and review processes


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Trend Description Implications Industry Factors

Climatic Variation

Variations in rainfall conditions affecting Saleyard throughput

Capacity to deal with large volumes of livestock due to de-stocking

Technological Change

State of the art facilities to reduce stock processing times, minimise animal stress and improve buyer observation

Roofing, soft floors and modernised drafting, weighing and transport facilities

Economies of Scale

There are many instances of larger selling centres getting bigger and effectively overtaking smaller yards and operating as a regional selling centre.

Enhanced markets, stronger throughout, efficient, more responsive prices and greater market strength. Smaller yards need to develop niche service, grow or risk obsolesce. Where a regional selling centre is able to operate commercially, there is likely no longer a need for local government to address the pre-existing market failure.

Logistics Costs Improvements in road infrastructure, vehicle technology and meat science which allows travel distance to be increased without impacts on livestock

Increased competition between Saleyards that are a significant distance apart and the emergence of regional selling centres

Selling Methods

Over-the- Hooks (Direct) Selling

Graziers selling directly to processors from the paddock

Always taken place but increasing due to improved pricing. Market share is small however compared to mainstream auctioning methods

Abattoirs Have a broad regional area where they purchase prime cattle and are susceptible to mergers/ acquisitions which could weaken competition

Having saleyard facilities of a high quality and reputation attracting higher prices

On-Line Selling Sites such as www.auctionsplus.com.au allow graziers to trade without the use of saleyards

Auctions Plus now has an established market share and may present a competitive challenge in the future

Conduct in Cattle Markets

The ACCC recently reported that Saleyards have a susceptibility to anti- competitive conduct and a high risk of conflicts of interests for agents

Weak Saleyard competition will have a broad impact on the industry making them less competitive against alternative selling methods

Source: AEC

http://www.auctionsplus.com.au/


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3. GYMPIE SALEYARDS SUPPLY CATCHMENT

3.1 LOCATION & SUPPLY CATCHMENT The Gympie Saleyards are located at Saleyards Road, Gympie QLD. For the purposes of this assessment, the competitive catchment area for the saleyards has been assumed to incorporate the following Local Government Areas (LGA’s):

• Gympie.

• Bundaberg.

• Cherbourg.

• Fraser Coast.

• North Burnett.

• South Burnett.

• Sunshine Coast.

• Noosa.

• Somerset.

The catchment has been developed based on consultation with Council and in consideration of the distribution of existing saleyards facilities.

Figure 3-1. Regional Catchment & Competing Saleyards

Source: AEC

The identified catchment includes the locations of existing saleyards, which the Gympie Saleyard facility would need to compete with to draw stock from (discussed in section 3.2).

The catchment area incorporates a cattle herd of approximately 740,000 head (including approximately 700,000 head beef cattle and 40,000 head dairy cattle). The catchment herd has declined by around 20% from the peak in 2013.

Based on the herd size, the likely turnoff would potentially be in the vicinity of 150,000 and 250,000 head of cattle per annum.


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Figure 3-2: Catchment Cattle Herd

Note: Due to data availability, estimates are based on the Wide Bay and Sunshine Coast Statistical Areas Level 4. Source: ABS (2017)

3.2 HISTORICAL THROUGHPUT Historical saleyards throughput (in aggregate) since 2013 has been provided by Council, together with monthly sales data for 2018-19. Annualised data is presented in the table below. Currently calf sales are held fortnightly on a Wednesday and Prime/ Store Cattle sales are held fortnightly on alternate Mondays. Stud sales are also held regularly throughout the year (Gympie Regional Council, 2018).

Since 2013 the Gympie Saleyards has facilitated the sale of just over 234,00 head (approximately 47,000 head p.a.). Over 80% of annual sales are through the liveweight sale and around 15% of sales are calves.

The Saleyard is predominantly serviced by a single selling agent, which results in a monopoly situation for that agent.

Table 3-1. Gympie Saleyards Throughput (2013-2018)

Sale Type Total Head (2013-2018) Avg. Annual Head Calves 36,239 7,248 Weaners 1,658 332 Brahman Females 360 (2015-2018) 90 Droughtmaster Sale 301 (2017-2018) 151 Droughtmaster Commercial Sale 381 76 Store Sale 1,567 313 Stud Sale 285 57 Liveweight Sale 193,404 38,681 Total 234,195 46,839

Source: Gympie Regional Council (Unpublished)


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3.3 COMPETITION There are currently nine identified livestock saleyards in and around the regional catchment area, including Queensland’s largest and second largest cattle saleyards (Roma and Dalby). Identified facilities are presented in Figure 3-1 and 3-2 below and are grouped into the nature of the selling centre (i.e. Regional Centre, Sub Regional Centre and Small Yards), along with their most recent throughput and a likely anticipated future.

Gympie ranked third in throughput (amongst surrounding saleyards for which data is available) during 2016-17 at just over 50,000 head with Roma and Dalby placing first and second with 310,000 and 210,000 head respectively.

Gympie is the largest of the three sub regional selling centres. Into the future, it is likely that many of the smaller yards will close (other than special sales). It is also expected that one of the sub regional centres will grow in prominence, capturing a greater share of the regional market, which will likely lead to at least one of the sub regional centres closing over the medium to longer term.

Key in securing the future for one of the sub regional centres will be the presentation of state of the art, best practice facilities. Such as those gaining prominence in NSW and Victoria.

Table 3-2: Existing Regional Saleyards

Facility Sales Throughput (Head, 2017) Anticipated Future Regional Centre Roma 310,525 Retained as Regional Selling

Centres Dalby 209,094 Sub-Regional Centres Gympie 50,260 One of these three will likely

prevail as the new regional centre in the medium term

Biggenden 44,074 Toogalawah 34,020 Small Yards Moreton 24,656

Likely close at some point in the future

Woodford 18,409 Woolooga 2,788 Harristown Unknown Coolabunia Unknown Wandoan Unknown Moura Unknown

Source: MLA (2018b)

The physically closest saleyard to Gympie is the Woolooga Saleyard, which is also owned and managed by Sullivan Livestock and Rural Services who is the main Agent utilising Gympie Saleyards. The Woolooga saleyard is relatively small in comparison to the Gympie Saleyard and has no weighing facility. The main sale activity is limited to bull and female sales around six times per annum. The larger saleyards of Roma (http://www.mymaranoa.org.au/business/saleyards/Pages/default.aspx), Dalby (http://www.dalbyregionalsaleyards.com.au/), Naracoorte WA (https://www.naracoortelucindale.sa.gov.au/NRLE) as well as SELX (Yass NSW) (https://www.selxnsw.com.au/) have well developed branding, marking and website strategies in place providing contemporary designed web pages with information about the saleyards for sellers and buyers. Gympie Saleyard in comparison does not have the same level of focus on branding, marketing and web presence. Improvements in this space will be important to maintain market share into the future.

As can be seen, Gympie is the largest of the sub-regional saleyards indicating that there is a positive market position that can be maintained. It is expected that the small saleyards within the catchment are more likely to become non-viable over time and the cattle sales from these saleyards will contribute to small growth in the sub- regional saleyards.

The current Council website would benefit from redesign and refreshing to raise the online profile of the Saleyard. The improved use of social media to promote the venue would also be a useful marketing tool.

http://www.mymaranoa.org.au/business/saleyards/Pages/default.aspx

http://www.dalbyregionalsaleyards.com.au/

https://www.naracoortelucindale.sa.gov.au/NRLE

https://www.selxnsw.com.au/


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3.4 CURRENT AND FUTURE CAPACITY AND DEMAND To accurately estimate future capacity, actual sale day numbers from prior years were examined to identify the seasonality peaks and troughs along with future demand growth to identify forward design capacity. Monthly sale day data has been made available therefore forward capacity requirements can be informed by analysing this throughput coupled with agent consultation.

3.5 PRICING The main fees and charges which have revenue streams attached to them for the Gympie Saleyard are presented in the table below. Analysis of total revenue generation indicates that potentially the only fee charged is the per head Yardage Fee as the average revenue based on throughput is approximately $5.31 per head.

If the Yardage Fee and Weighing Fee were charged for sales, then the total fee would be $9.50 and would be comparable with benchmarked saleyards as follows:

• $9.60 per head of cattle for the Roma Saleyard;

• $12.10 per head of cattle for the Dalby Saleyard;

• $9.00 per head of cattle for the Dubbo Regional Livestock Market;

• $10.80 per head of cattle for the Northern Rivers Livestock Exchange;

It appears therefore that some fees may not be being appropriately applied and should be further investigated.

Additional fees and charges are listed for other services at the benchmarked saleyards and a review of these additional revenue streams should be undertaken to see if they are applicable to Gympie. It must be noted direct comparison of prices for livestock selling centres is challenging due to varying pricing methods and agreements between operators, agents, and graziers. Additionally, many of the benchmarked saleyards offer more contemporary facilities for sellers.

Table 3.3. Gympie Regional Council Fees & Charges, 2018-2019

Fee/Charge Description Fees and Charges Cattle Direct to Works per head $5.60 Calves Direct to Works per head $2.80 Weighing Fee $3.90 Lease arrangement (per agent) $5,407.00

Source: Gympie Regional Council (2018).


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Input-Output modelling has been used to examine the direct and flow-on4 activity expected to be supported within the local economy (Gympie LGA) by Saleyard activities. Modelling drivers used in the assessment are described in Appendix B. A description of the Input-Output modelling framework used is provided in Appendix B along with the details of the modelling assumptions.

Input-output modelling describes economic activity by examining four types of impacts:

• Output: Refers to the gross value of goods and services transacted, including the costs of goods and services used in the development and provision of the final product. Output typically overstates the economic impacts as it counts all goods and services used in one stage of production as an input to later stages of production, hence counting their contribution more than once.

• Gross product: Refers to the value of output after deducting the cost of goods and services inputs in the production process. Gross product (e.g., Gross Regional Product) defines a true net economic contribution and is subsequently the preferred measure for assessing economic impacts.

• Income: Measures the level of wages and salaries paid to employees of the industry under consideration and to other industries benefiting from the project.

• Employment: Refers to the part-time and full-time employment positions generated by the economic stimulus, both directly and indirectly through flow-on activity, expressed in full time equivalent (FTE) positions5.

3.6 REGIONAL ECONOMIC BENEFIT

3.6.1 Modelling Approach

Economic modelling in this section estimates the economic activity supported by the saleyard operations and spend generated within the Gympie Local Government Area (LGA).

3.6.2 Economic Impact

In 2018, the Gympie Saleyards will host 50 sale days for cattle, 2 stud sales days, and 4 sale days for horses (Sullivan Livestock & Rural Services, 2017). At these sale days, the saleyards are estimated to have processed approximately 45,237 sales of cattle, 260 stud sales and 736 sales of horses over the course of the year, yielding a total value of $42.0M in livestock transactions.

This activity delivers economic benefits to the Gympie local economy through the following avenues:

• Operational activities of the Gympie Saleyards, including facility operations as well as stock movement activity.

• Livestock agent activity, providing revenue to agents through agent fees.

• Expenditure on goods and services of people attending the sale days within the local economy, that would not otherwise occur without the sale day.

The assumptions used in assessing each of these impacts are outlined in Appendix B.

The Gympie Saleyards is estimated to support $12.6 million in output for business within the Gympie local economy, of which $5.6 million is generated directly (including facility operations, stock movement, agent fees and spend of attendees). This activity supports, both directly and through flow-on impacts, the following level of economic activity:

• $6.6 million in GRP for the regional economy.

• $3.6 million in wages and salaries for workers.

• 50 FTEs employed.

4 Both Type I and Type II flow-on impacts have been presented in this report. Refer to Appendix A for a description of each type of flow-on impact.

5 Where one FTE is equivalent to one person working full time for a period of one year.


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Table 3-4. Gympie Saleyards Economic Impact

Impact Output ($M) Gross Regional Product ($M) Incomes ($M) Employment

(Persons) Direct $5.6 $2.8 $1.7 23 Type I Flow-On $2.5 $1.2 $0.6 9 Type II Flow-On $4.5 $2.6 $1.2 19 Total $12.6 $6.6 $3.6 50

Source: ABS (2012), ABS (2017b), ABS (2018b), AEC

The main industries that benefit from the saleyards operations, in terms of contribution to GRP, are:

• Wholesale trade (direct and flow-on GRP impact of $1.8 million).

• Retail Trade (direct and flow-on impact of $0.9 million)

• Transport, postal and warehousing (direct and flow-on impact of $0.8 million)

Figure 3-3. GRP Contribution by Industry

Wholesale trade Retail trade

Transport, postal and warehousing Ownership of dwellings

Financial and insurance services Rental, hiring and real estate services

Accommodation and food services Other services

Professional, scientific and technical services Health care and social assistance

Manufacturing Education and training

Agriculture, forestry and fishing Administrative and support services

Electricity, gas, water and waste services Construction

Information media and telecommunications Public administration and safety

Arts and recreation services Mining

Direct

Type I

Type II

$0.0 $0.5 $1.0 $1.5 $2.0 Gross Regional Product($M)

Source: ABS (2012), ABS (2017b), ABS (2018b), AEC

3.6.3 Other Social and Health Benefits

Studies into the impacts of drought and other pressures on agricultural communities have shown that having robust social infrastructure, such as saleyards, recreation grounds and other meeting places that allow remote individuals and families to meet are vital. The community networks, social and cultural recognition and ties of trust and vitality of civic organisations bind a community together and underpin the social capacity of the community to make effective use of its knowledge and economic resources.

Evidence has shown that where such infrastructure is not available, communities start to fracture, which is a leading indicator for the community support network. The independent nature of farming communities and their reluctance to seek assistance will hide many of the social impacts of the removal of such infrastructure but will ultimately have a huge impact on community cohesion and social well-being.

A loss of social cohesion and infrastructure may increase the demand for mental and health services and a loss of social cohesion will also make it more difficult to deliver services to rural groups, which in many cases are already identified to be difficult to access.


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The cost of a disconnected community and high dependency on welfare resulting from an altered economy are very high, with high demands on support agencies and flow-on impacts to individual health, mental health, education and employment prospects and ultimately, to civic pride and community capacity. The economic impacts to the region through declining prosperity and loss of skills and social capacity could be great, and the capacity of local cattle industry to respond and adapt to change would be constrained.


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4. CURRENT SITE LAYOUT & FACILITIES

4.1 KEY FACILITIES The Model Code of Practice for Livestock Saleyards and Lairage (AMLA, 2015) states that the structure of a Saleyard can dictate the relative ease and safety with which conducting a sale or transacting animals through a facility will bring. There are several key priorities, which can be attributable to meeting the outcome required, these include: design, construction, maintenance, size, on site facilities for selling, and transacting animals through the facility.

• Outcome Required: The Saleyard is designed, constructed and maintained to facilitate efficient flow and visibility of livestock for sale whilst providing for human safety and animal welfare.

• General requirements: A saleyard should be constructed and maintained so as to maximise operator safety and minimise stress and injury to livestock. This includes design and construction to appropriate standards, such that there are no projections, slippery surfaces (or other) that may lead to bruising or injury of livestock and stock handlers, or other parties undertaking activities at the facility.

Full details of the Model Code of Practice can be seen at Appendix G.

The Gympie Saleyards complex contains the following key infrastructure components:

• The selling pens

• Holding yards

• Receiving and dispatch ramps

• An administration building

• A canteen and ablutions building with covered seating area

• The selling ring

• Scales

• Cattle dip

• Storage shed

• Truck wash down facility

• Generally, gravel parking and manoeuvring areas for both heavy and light vehicles.

Although clearly ageing, the yards themselves do not appear to present any immediate danger to animals or humans due to the physical components or their assembly.

Figure 4-1 provides a visualisation of the current layout.

4.2 SURROUNDING LAND USE The Saleyards land extends north and east to be bounded by the existing railway corridor:

• Further east is the existing rifle range.

• South east is land currently owned by Queensland Rail, which contains cattle holding yards adjoining the Saleyards, further south, are the now abandoned sheep and pig selling pens. The railway yards are used by the Saleyards as holding pens with no use made of the abandoned sheep and pig yards.

• To the west is a former quarry site, which has recently been remediated and remains in the ownership of Council operating as a bulk material holding yard.

• The land to the south (on the southern side of Saleyards Road) is vacant land currently heavily vegetated with a telecommunications tower as the only evidence of formal use.


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The Gympie saleyard is the largest of the sub-regional saleyards within the catchment and therefore has a positive market position which is likely to be maintained and grown into the future.

However, the current location of the Saleyard is likely not sustainable for the long term i.e. beyond 5 to 10 years based on observations of the Saleyard and experience with other Saleyard reviews. This is primarily due to the currently planned extent of urban development and resulting encroachment in the vicinity, which will significantly increase the potential for pedestrian and vehicular conflicts associated with the operation of the Saleyard.

• Further south of that is a single dwelling, which appears to have been constructed approximately 30-40 years ago.


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Figure 4-1. Gympie Saleyard Existing Layout

Source: Struxi


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Figure 4-2. Existing traffic Flows

Source: Struxi

GYMPIE SALEYARDS STRATEGIC

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4.3 EXISTING SALEYARD IMPROVEMENTS Due to the expected maximum 10-year lifespan of the existing saleyard it is recommended that any improvements will need to be limited to health and safety and compliance works. The following commentary therefore provides an assessment of each aspect of the saleyard infrastructure and operation and seeks to prioritise improvements into High and Low priority works.

4.4 SAFETY AND SECURITY

4.4.1 Safety

As part of the review, observations were made of the interactions between people, animals, light vehicles and heavy vehicles. Numerous conflicts that have the potential to cause harm were observed.

The proposed Plan seeks to mitigate these risks wherever possible.

4.4.2 Security

The canteen has been broken into several times resulting in the now steel framed triple locked entrance door. The serving shutters have been provided with additional external security screens that are removed prior to use.

The administration office is a basic construction that is protected by standard doors and deadbolts. There is no equipment kept in the admin building when not in use presenting a much lesser target for robbery than the canteen.

The site generally is protected by a basic security camera system. Council staff attend the site daily and the agent who runs the sale days is in attendance generally for the day prior, of and after sale day

4.5 TRAFFIC MOVEMENTS AND FLOW

4.5.1 Traffic Movements

There are multiple vehicular entries to the site, which includes a large section to the south of the site where there is no defined crossover, resulting in vehicles entering and leaving the road in an ad-hoc manner. The access points to the west rely largely on local knowledge with little or no signage or obvious traffic control measures. Two of these access points enter or leave the road at acute angles, which presents added dangers.

Within the site there is little or no limitation on where vehicles can move or park. The requirement for heavy vehicles to perform U-turn manoeuvres and reverse represents a notable risk to safety. There is very little formalised car parking and most visitors to the Saleyards park for their own convenience, which can create difficulties for heavy vehicles at times.

The control of vehicle movements and parking on the site is far from desirable. Physical separation does not exist. There is very limited formalised parking and what is there requires light vehicles to reverse into heavy vehicle movement paths. Directional signage is minimal at best. The surface, although gravel appears to be in good condition and well maintained.

No specific parking space is provided for emergency vehicles.

Agents parking is provided, however, access to this area requires vehicles to transition across pedestrian areas, which is not considered to be suitable. Alternate agents parking is located near the load in docks, however, this is not an ideal alternative location as heavy vehicles reverse either side of the parking zone.

There is no dedicated parking provided for buyers.

4.5.2 Existing Flow and Composition

There is a clear bottleneck in stock flow at the load in area. The diverse nature of loads being delivered is a strong contributing factor to this.


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Vehicle movements are convoluted, and not well controlled and there is a crossing of vehicle paths, which occurs at a frequency that is too high. Vehicles in the area range from B-Double down to domestic utilities with trailers. Vehicles once entering the loading area generally perform a 270 degree turn to line up to the loading docks and then reverse to the dock. After unloading, many proceed to the wash down, which requires crossing the path of reversing vehicles, performing another u-turn before reversing into the wash bay. Upon exiting the wash bay, they cross the path of all incoming vehicles again.

Numerous points of conflict are highlighted, namely:

• Vehicles delivering and collecting stock have:

o multiple possible points of entry

o poor directional signage (local knowledge is required)

o numerous intersections

o acute intersections with road

o no formal separation from light vehicles (or pedestrians)

o limited manoeuvring space;

• Light vehicles have:

o Very little formalised parking

o What parking there is requires a blind reversing manoeuvre to leave the parking that reverses into a heavy vehicle access.

o Insufficient parking for larger sale days.

o No separation from heavy vehicles

o No restriction on parking in conflict with heavy vehicles using the “railway yards” loading ramp

o No specific entry/exit point from the public road to the site.

4.5.3 Ideal Flow and Composition

4.5.4 Pedestrian Movements

There are few restrictions on where pedestrians can access throughout the Saleyards complex and there is little physical separation between the canteen area and the carpark.

An upgraded drive through truck wash provides a safe, clean and environmentally controlled environment for this activity and a new truck wash location would also provide a substantial efficiency improvement on the existing meaning that queuing for this service will be reduced hence removing further potential conflicts.

Physical separation between heavy and light vehicles

Formalised entry/ exit points both from carparking through the site and from site to the public road

Additional loading ramps and improved vehicle flows will reduce the number of reversing manoeuvres required by heavy vehicles, and the relocation the wash down from the load in/ load out area will reduce congestion, waiting and un-necessary crossings

•

Clearly defined vehicle paths •

•

•

•

The Plan seeks to provide a substantially increased control of vehicle movement with formalised site entry and exit points, namely:


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Access to the selling area is generally considered safe. The public and buyers are required to stand in the lanes, which are ultimately used to move cattle from the selling pens to the scale area and for re-loading selling pens during the sale. While no incident was observed this is a practice that has room for improvement. The selling ring requires safety / access upgrade or alteration if its use is to be continued.

Sale observers can move through the lanes with the purchasers, follow on the overhead catwalks or to take a seat in the ring and observe the weighing. During the site visit it was observed that the stock hands have the responsibility to keep the cattle away from pedestrians during the sale.

The Saleyards were observed to be an environment where all of the attendees needed to be aware of their situation and to take the appropriate personal precautions to protect the safety of themselves and others in the absence of physical measures.

4.5.5 Stock Flow

The flow of stock throughout the Saleyard is logical and generally moves from west to east. The yards include bottlenecks to the flow of cattle at both the receival dock and crush and at the end of the lanes, which come to square corners at least twice between the welling pens and the scales.

When under capacity, the selling area of the yards requires double penning during sale days, which increases the number of times that cattle are required to be moved through the yards. Typically, more lots are brought to sale than can be accommodated in the pens that already have catwalks over them, resulting in the need to “double pen” during the sale. This process is time consuming and necessitates additional activities occurring while the sale is in progress, which is an obvious productivity inefficiency.

There is an obvious point of congestion at the time of receiving cattle for sale, which is caused in part by the somewhat random nature of the lots that are delivered for sale. Sorting, marking and “mouthing” takes time and is not handled in the most efficient manner.

The floors are concrete with surface grooves to provide secure footing for animals. The provision of soft floors has not been undertaken.

Once a pen has been sold (and not all pens are sold as a single lot) cattle are moved to be weighed out and then dipped if required before being re-penned awaiting collection after the sale. Currently there exists two general load- out points; one east (adjacent to load in); and the “railway yards” to the west. The railway yards have a double decker loading ramp, while the load in area has both single and double deck ramps.

4.6 SERVICES The Saleyard is serviced by mains supplied water, electricity, telephone and sewer. Access to the site is via sealed bitumen road, whilst internal vehicle movement areas are generally unsealed gravel surfaces with some bitumen seal.

There is very limited control of stormwater generated within the site, which will be a long-term issue if not resolved. It is clear that effluent and other contaminants are being washed from the confines of the saleyards area onto the surrounding grassed areas.

Greater patron comfort through landscaped areas and additional shade shelters

New ablutions including facilities for persons with a disability

Some changes to the arrangement of pens and lanes can reduce the probability of human / animal conflict.

Additional catwalks over the existing holding yards will reduce or eliminate double penning and the need to move stock through the lanes while sales are taking place.

Defined pedestrian paths and pedestrian areas located adjacent to non-vehicular areas •

•

•

•

•

The Plan should seek to improve pedestrian flow through the Saleyard, namely:


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The overflow from the existing wash down makes its way overland to settling ponds to the north and the evidence of nutrient overload on the slope is clear.

4.7 EQUIPMENT

4.7.1 Scales

The scales are used weekly and appear to be in good condition. It has been assumed that regular calibration is required and undertaken. The observation office is rudimentary but effective, and the location of the scales at the entrance to the selling ring is logical and works with the overall flow of the yards.

4.7.2 Effluent Runoff

Surface drainage from the pens discharge directly to ground at the perimeter of the pens. This is not consistent with current regulated practices. The expected outcome if designed today would be to separate rainwater from cleaning / waste water to minimise the volume of water to be treated and for waste / effluent to be collected and treated on site or discharged to sewer.

4.7.3 Cattle Dip

The dip is old but appears to be still effective in operation. With the exception of minor improvements to cattle movement no alterations or upgrades are suggested to be required.

4.7.4 Truck Wash Down Facility

The existing facility is not considered to be adequate from an operational or environmental perspective. The facility is located to the north of the existing load in area and requires drivers with vehicles of various sizes to reverse in to concrete bunded ramp.

The water supply is barely adequate for effective operation and the waste water capture, filtration and disposal is inadequate. The separation pit is overloaded, and safety fencing is more of a visual deterrent than an actual physical barrier and the location of the existing wash down is not conducive to efficient flow of vehicles.

Inspection of the site shows clear evidence that water heavily loaded with nutrients is flowing across the surface until such time as it finds its way to one of two holding dams. There is no actual treatment of effluent as it leaves the site. In times of heavy rainfall, it is expected that the holding dams overflow and then makes its way into the rail corridor and subsequently into nearby Banks Creek.

The current maintenance practices around the wash down facility was not able to be examined during the site visit. It was noted however that a stockpile of soil / solid waste not far from the wash down facility signed as containing declared weeds.

Although it is likely to be only minimally contaminated, there is no method of removing hydrocarbon contamination from the water exiting the wash down facility.

4.7.5 Saleyard Operations

The Saleyard is managed by Council with a single livestock agent conducting Stores sales. Council is responsible for any capital works, the general maintenance of the facility and the engagement of a catering contractor to manage the canteen. Due to the scale of the operation measured in turnover, Council is not obligated to operate the Saleyard as a commercial business incorporating National Competition Policy obligations under existing local government legislation.

The livestock agent provides all equipment and staff required to facilitate the sales.

Traffic management is one of the key causes of operational inefficiency, in part caused by congestion at the point of receivals and one of the key elements of the proposed Plan.


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4.8 WORKPLACE HEALTH AND SAFETY

4.8.1 WHS Overview

The entire facility was built and commissioned at a time before the current safety legislation and culture was implemented, and has had little, if no, safety upgrades since being built. There are several elements that could be improved subject to the availability of funds and demonstrated need, namely:

• Recent minor improvements providing additional stairs can be added to, reducing the need or incidence of staff or members of the public needing or wanting to enter the yards at ground level.

• The interaction of humans and animals is inherently risky. Some alteration to the geometry of the yards and lanes could reduce the incidence of cattle turning back toward handlers when being moved around the yards.

• This review does not include a detailed workplace health and safety audit but rather an overview of existing practices and opportunities for improvement in practices and the physical environment as detailed below.

• The configuration and construction methodology of the yards have remained stagnant since the yards were first constructed. Open rails and square corners are unchanged.

4.8.2 WHS Requirements

The key considerations are the safety of workers, sale attendees and members of the general public who may visit the facility. Whilst the contractor running the sales is the primary employer and hence primarily responsible for the safety of their workers, there remains a requirement for Council as the PCBU (Person Conducting a Business or Undertaking) of the facility to ensure that it is safe to use.

Council, as the owner of the Saleyard, holds the overall responsibility for the safety of persons visiting or working at the site. It is recommended that several issues should be investigated in more detail to ensure that an adequate level of safety is provided.

• Access to and throughout the selling ring (stairs and balustrades)

• Separation of people and animals during sale operations

• Separation of heavy and light vehicles

• Separation of vehicles and pedestrians

• Improved interaction of vehicles entering and leaving the site

• Additional shade for both people and animals

• Proper disbursement and ultimate disposal of waste water generated on the site

• Control of access to elevated walkways

• Improved escape / protection mechanisms for those working with cattle

• Ensure that safe methods of access and fall protection are provided for working at height

• Restriction on public access while the yards are not in operation

• Ensure safe management of chemicals is undertaken (not obviously deficient but always worth reviewing procedures).

4.9 CURRENT FACILITIES SUMMARY

Table 4-1. Summary of Saleyard Facilities Attributes

Positive Attributes Negative Attributes • When used is at or near capacity • Site is familiar to users • Currently separated from urban uses

• Competition is limited


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• Able to be accessed by the required vehicles • Has access to the required services • Elevated site immune from flooding • Has physical space for significant expansion • Close proximity to rail transport

• Site is generally unsealed meaning that dust generation and runoff contaminated by silt is potentially an issue

• Vehicle movements are not clear and obvious • Pedestrian safety is compromised • Heavy vehicle movements can be restricted by ad-

hoc parking of light vehicles • Entry/exit points to the public road are not

controlled and therefore present an obvious safety risk

• Facilities are aged and not meeting consumer expectations (e.g. parking, shade, canteen & ablutions)

• DDA (Disability Discrimination Act) compliant access to and within the site is not evident

• Structures appear to have been maintained to a state of steady degradation and are reaching the point where significant capital will be required to extend the life by a significant period

• Stormwater management is not in keeping with current requirements

• Wash down facility is inefficient and effluent disposal is not managed well

• Sale days frequently exceed the base capacity of the selling pens requiring additional handling of animals and generating increased risk of animal/human conflict.

4.10 CONDITION ASSESSMENT An assessment of the saleyard infrastructure has been carried out against the performance standards identified in the AMLA Model Code of Practice 2015.

The assessment has been scored using a 5-point scoring system as shown in Table 4-2.

Table 4-2. Condition Assessment Scoring System

Score Commentary 1 Not Provided/ Very Poor 2 Poor 3 Acceptable 4 Good 5 Very Good

Source: Struxi

Table 4-3 provides details on the outcome of the condition assessment.

Table 4-3. Condition Assessment Outcomes

Assessed Item Commentary Score Safety of animals No immediate or obvious danger to animals observed 4 Safety of humans No immediate danger to humans was perceived however the yards

remain an operational space and a degree of human awareness is required to maintain personal safety

3

Flow of livestock The flow is logical but hampered by bottlenecks and lack of capacity 2 Animal welfare Animals appeared to be provided with adequate space, food and

water. Yard capacity means that animals need to be moved more often. Modern design of yards and lanes adopts curved races and

solid walls at pressure points

3

General condition of infrastructure

Fair condition however it appears that only reactive maintenance is being carried out

2

Capacity of selling area Inadequate as evidenced by the need for double penning 2


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Assessed Item Commentary Score

Size of selling pens A variety of pens sizes are provided 4 Environmental management

Rain and effluent freely discharge uncontrolled to the surrounding area 1

Pens – dust/mud/faeces mitigation

As expected 4

Pens – provision of feed and water

As expected 4

Shelter Climate is not considered to be extreme. Minimal shelter is provided for animals (calves being the exception)

2

Vehicular access Very ad-hoc with multiple conflict zones 1 Loading and unloading

area Effective but obvious room for improvement 2

Truck wash Environmental management failures are apparent including inadequate sealed surface, poor traffic management and difficulty of

access and use

1

Access to premises The facility was constructed some 20 years prior to the introduction of the Disability Discrimination Act (1993) with no upgrades made to seek

compliance with required standards

1

Source: Struxi


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5. STAKEHOLDER ENGAGEMENT

5.1 INTERCEPT AND ONLINE SURVEYS

5.1.1 Survey Background & Respondents

The questions used in the intercept and online surveys can be found at Appendix C and a summary detail of all responses can be found at Appendix D.

A total of 200 responses were collected by attending a number of Sale days and approaching attendees to undertake the survey. Additionally, an online survey was placed on Council’s ‘Have Your Say’ website and actively promoted to members of the public to participate.

Of the 200 respondents, 58% identified as male with 41% identifying as female. Interestingly the majority of respondents to the intercept survey were male (76%) whilst the majority of respondents to the online survey were female (52%).

In terms of property ownership, 87% stated that they owned a farm or agricultural property with 13% stating that they did not. Of those owning a farm or agricultural property, 62% were primary producers with 27% identifying as hobby farmers.

In terms of location, 78% of respondents stated that they lived in the Gympie Regional Council area with the remainder (22%) identifying from the Fraser Coast, Noosa, Burnett and other locations.

5.1.2 Economic Impact Questions

A major part of the survey included questions regarding spending habits whilst attending Sale days, excluding the purchase of livestock. The results from the survey were assessed utilising Input-Output (IO) modelling to estimate the economic activity and net contribution to the Gympie Regional economy.

5.1.3 Buying Trends

The majority of those responding (63%) attended the Saleyard either weekly, fortnightly or monthly. 18% attended quarterly with 9% either attending half-yearly or yearly. By far the largest reason for attending the Saleyard was for the cattle (88%) or calf (58%) sales with horse sales (40%) representing the other main reason.

Only 38% of buyers and sellers stated that they only purchased livestock from the Gympie Saleyard. Alternative ways in which buyers and sellers stated how they purchased their stock included private paddock sales (38%), direct to abattoir (30%) and other saleyard auctions (28%).

5.1.4 Saleyard Infrastructure

Table 5-1 below identifies the possible Saleyard improvements offered to those surveyed with the results provided in order of importance.

Extensive engagement was undertaken with key internal and external stakeholders regarding the Gympie Saleyard Strategic Plan.

An intercept survey captured 80 valid surveys from Saleyard users including buyers, agents, vendors and transport providers, seeking views on required improvements and spending activity on sale days. A link to the same survey was placed on the Council website attracting a further 120 responses.

Direct face-to-face or telephone engagement included a series of meetings with industry stakeholders, local agricultural retail businesses and council staff.


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Table 5-1. Saleyard Improvements

Enhancement Total Intercept Online Yard capacity and/or general infrastructure (e.g. pens) 50% 40% 57% Roof over yards 48% 33% 58% Parking 34% 29% 38% Amenities 30% 28% 32% Vehicle accessibility 24% 18% 28% Truck wash down 24% 24% 23% Canteen 19% 21% 17% Other 16% 33% 5% No change 3% 6% 1%

When asked which of the enhancements was the most important, Saleyard capacity and/or general infrastructure (34%) and a roof over the Saleyards (26%) were identified above the other options.

5.1.5 Qualitative Feedback from Respondents

Feedback was also obtained from Council staff in face to face or telephone conversations with the outcomes summarised as:

Strategic Value

• The Plan should be focussed on the strategic intent and a robust options appraisal of the Saleyards and not just be an operational improvement plan.

• The Saleyard is an old facility that has significant amenity issues.

• The economic and social values of the Saleyards for the Gympie region must outweigh any costs of improvement and/or relocation.

Accessibility

• There are currently no plans for upgrades to the roads leading up to the Saleyards.

• The current B double route does not go through any school zones but is not ideal as the route is primarily along residential roads.

• Council has received amenity complaints regarding B doubles in residential areas.

• It is doubtful that if an application was made today for the same B double route it would be approved

• Rigid trucks and utes/trailers travelling to the Saleyards drive through school zones.

• No complaints have been made regarding the Saleyard parking area and potential conflict with B doubles/ rigid trucks.

• The proposed by-pass route will provide easier route access to the Saleyards once completed.

5.2 EXTERNAL STAKEHOLDERS The following external stakeholders were directly consulted:

• Sullivan’s Livestock

• Nolan Meats

• Norco Rural Gympie

• Tom Grady Rural Merchandise Store

• Landmark Gympie

• Victory Hotel

• Town and Country Auctions.


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5.2.1 Issues Identified in External Feedback

Strategic Value

• The current Saleyards should be relocated to a more suitable location to facilitate better accessibility and provide improved and contemporary saleyard infrastructure.

• A new site could be developed as a ‘Livestock Precinct’ incorporating saleyards, abattoir/meatworks, feedlots, agricultural retail supplies stores and veterinary services.

• All retail and service providers stated that they see a significant increase in trade and spending relating to sale days (both cattle and horse sales).

Current Saleyards

• The Gympie saleyards have a well-established reputation for good produce and achieving good prices for sellers.

• It is expected that similar number of throughput of livestock to that currently being achieved will be experienced into the future.

• The current infrastructure is in need of upgrade including the canteen and toilet facilities.

• More shade and seating areas are required for attendees.

Buying Trends

• Expect that sales activity will move towards increasing paddock sales and/or “over the hook” sales.

• Gympie Saleyards niche market is servicing smallholders/ hobby farmers along the regional coastal strip rather than larger sellers/ buyers.

• The closest competing Saleyard at Woolooga (also operated by the same livestock agent) does not compete with the Gympie Saleyards as it currently does not have any weighing facilities and only holds 5-6 sale days per year focusing on bull and female sales.

• Horse sales are expected to continue at the current rate of 3-4 sales per year.


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6. 10-YEAR FINANCIAL PLAN

6.1 PRIORITISATION OF IMPROVEMENTS The cost of the identified improvements would be expensive if fully implemented on the current site which has a limited (5-10 year) lifespan due to urban encroachment amongst other issues. As discussed in Chapter 5, improvements have therefore been categorised into High Priority (those required to maintain current operations and to achieve minimum compliance levels) and Lower Priority (those that are ‘nice to have’ but may not be financially sustainable due to the limited lifespan of the current Saleyard).

The Australian Livestock Markets Association (AMLA) Model Code of Practice for Livestock Saleyards and Lairages outlines the desired physical attributes of a selling site, services provided and the general structural requirements of the facility in addition to guidelines on operational requirements. It is considered that the recommendations contained within this report mirror to a large extent the requirements of this Code with some local / user variations in priority.

6.1.1 High Priority Improvements It is understood that regular WH&S audits are carried out by the facility owner and operator ad that as a result, recent safety improvements have been adopted.

The High Priority Improvements include:

• New load in and pre-delivery pen ($497,000):

o The highest priority request from users was increased yard capacity. Whilst the proposed load in and pre- delivery pen will not directly increase capacity it will improve the efficiency of handling, reducing delays and providing some additional short-term penning capacity.

o At the site inspection, delivery vehicles were queued almost to Saleyards Road on a day when load-in operations were appearing to move smoothly. In the case of internal handling delays occurring it is likely that the queue would extend to the public road and is clearly an unacceptable outcome.

o This will provide multiple delivery bays together with the ability to draft and pen cattle that require additional processing outside of the normal delivery flow. It is also recommended that the existing double deck ramp be relocated and incorporated into this facility.

o Relocation of the existing ramp will simplify the load-out process. Additionally, the railway yards will require some adjustment including the subdivision of the western most existing yard into four or more smaller holding yards. It is proposed that the railway yards be used for the holding of larger lots whilst the receival area will be able to manage the load out of smaller lots.

• Catwalk over existing holding pens (with no alteration to the current pen configuration) to aid safety ($55,000).

o Combined with the improved receival of stock the catwalks over the existing holding yards would provide an immediate increase in selling capacity without any physical expansion of the yards themselves.

• Re-orientation of the railway yards loading ramp together with some subdivision of the railway yards to create smaller pens ($171,000).

• New ablutions block: Two male and shower, two female and shower and PWD with shower together with the conversion of the existing ablutions to storage (general and canteen) ($196,000).

o The current facility does not meet current user expectations or make any provision for persons with a disability to access the facility.

• Waste management improvements to the existing truck-wash: Potentially a single stage solids filter discharging to a holding tank then via macerating pump to pressure main into sewer (up to $100,000).

o The current facility does not manage effluent or stormwater in an environmentally sensitive manner. Waste and nutrients are easily capable of entering adjacent land or nearby watercourses.

• Total estimated cost of high priority improvements $1,019,000.


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Without these High Priority improvements taking place, it is considered that the Gympie Saleyard will not be as attractive a proposition if Council wishes to seek additional agents and could ultimately see a decline in use as more sellers use alternative saleyards that offer better facilities and services.

6.1.2 Lower Priority Improvements

The Lower Priority improvements (not recommended for immediate incorporation) include:

• Roadworks and stormwater management.

• Extended holding yard capacity and selling pens:

o This will provide additional holding areas and eliminate the need for double handling of stock.

o Additional selling pens will allow the saleyard to increase capacity and generate additional income in line with financial targets as demand requires into the future.

• A new truck-wash facility in a more appropriate location: The removal of one existing access to Saleyard Road and the conversion of this to a one-way loop will accommodate the siting of a new wash down facility. The facility would be the length of a b-double (26 metres maximum) and would allow vehicles to stand on a ramp with an upward gradient of 10%. This arrangement provides an optimum balance between safety for operators and the efficient cleaning of vehicles as cattle crate cleaning requires generally higher volume, low pressure water delivery. If there is demand, a high-pressure supply can also be provided to facilitate underbody weed and seed wash downs. The proposed location also removes several reversing manoeuvres that are currently required throughout the site.

• Formalised carparking area:

o Formalised parking for light vehicles is preferable from a safety and efficiency perspective. Together with the relocation of the railway yards loading ramp, this will remove the existing conflict between trucks manoeuvring onto the ramp and cars park randomly on the gravel hardstand.

o Formalised carparking will also provide controlled access to the site and parking areas and reduce substantially the number of conflicts. Pedestrians would also generally be able to move directly from car parking areas to the sales area without traversing heavy vehicle areas.

• Roof over selling and holding pens:

o The provision of a roof over the Saleyards provide the opportunity for stormwater capture and a solar array that could provide excess power to feed into the grid offsetting the running costs of the facility.

o Any roof design would need to ensure that ventilation is maximised, and that sunlight is not completely excluded from the pens to allow the natural drying of the yards. It is proposed that the roof would comprise a series of low-pitched skillion roofs orientated to face the north and designed such that low angle sun is able to reach the yards during winter months and in the morning and afternoon before the day gets too hot. The provision of a roof will also separate storm water from waste water, reducing the volume of water needing treatment on site.

• Estimated cost of lower cost improvements ($5,334,000).

Additional and supporting technical documentation and drawings is provided under a separate cover (Technical Drawings).

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Figure 6-1. Concept Drawing of Infrastructure Improvements

Source: Struxi


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6.2 CURRENT OPERATIONAL PERFORMANCE The Gympie Saleyard currently operates at an annual loss of approximately $58,000 which is broken down as follows in Table 6-1:

Table 6-1. Current Annual Operating Performance

Operating Budget $ Revenue $248,660 Operating Costs $275,000 Depreciation $31,800 TOTAL DEFICIT $58,140

Source: Gympie RC

Revenue comprises agents permits and yardage fees. Based on the average throughput of 46,839 (Table 3.2) this equates to revenue of $5.31 per head.

Depreciation is based on the written down values and remaining useful lives of assets on the asset register as at February 2019.

6.3 PROPOSED CAPITAL COSTS AND FUNDING For the purposes of developing a 10-year financial plan, only the proposed High Priority improvements shown in Table 6-2 have been included. The Table also provides an indication of construction timing and assumptions on the amount of grant funding that are likely to be available from Federal and/or State governments.

Table 6-2. High Priority Improvements Cost

Improvement Capital Cost ($)

Year of Construction

Grant Funding

New Delivery/ Receive Facilities 388,000 2019-20 50% Catwalk Over Existing Holding Pens 43,000 2019-20 50% Reorientation of Railway Yards Ramp 134,000 2019-20 50% New Ablutions Block 153,000 2019-20 50% Existing Truck Wash Improvements a 78,125 2019-20 50% Sub-Total 796,125

Professional Fees (8%) 63,690 2019-20 50% Contingency (20%) 159,225 2019-20 50% TOTAL 1,019,040

Note a: Estimated cost not subject to QS assessment. Source: Struxi, Mitchell Brandtman.

For completeness, the additional cost of the Lower Priority improvements is shown in Table 6-3. These have not been included in the financial modelling.


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Table 6-3. Lower Priority Improvements Cost

Improvement Capital Cost ($)

Hardstand 669,000 Extended Holding Yard Capacity 560,000 Roof Over Selling Pens 1,176,000 Roadway & Stormwater 275,000 New Truck Wash 1,136,000 Carpark 165,000 Demolition 84,000 Landscaping 20,000 Admin & Canteen Works 82,000 Sub-Total 4,167,000 Professional Fees (8%) 333,360 Contingency (20%) 833,400 TOTAL 5,333,760

Source: Struxi, Mitchell Brandtman.

6.3.1 Grant Funding Opportunities

Several grant funding opportunities from both the Federal and State governments have been identified for consideration. A full list of the grant opportunities relevant to funding saleyards infrastructure is included at Appendix E including links to the grant bodies websites.

For the purposes of the financial assessment, it has been assumed that 50% grant funding will be secured for the proposed High Priority improvement works.

6.3.2 Additional Operating Costs

In line with industry standards on maintenance expenditure, an increase of 2% of constructed capital costs annually has been included to cover maintenance costs for the new High Priority assets. This equates to an increase to annual maintenance costs of $20,381 for High Priority works (before inflation).

6.3.3 Depreciation

Depreciation for new High Priority assets commences in the year following construction and have an estimated life of 10 years representing the total remaining lifespan of the current Saleyard.

6.3.4 Council Funding

It has been assumed that Council will fund its’ share of the capital expenditure from cash reserves. Consequently, no debt service implications have been modelled.

6.4 OPERATING REVENUE

6.4.1 Revenue and Pricing

Two scenarios have been modelled based on historic trends and the capacity of the saleyard. These scenarios are:

• Low Growth: Conservative industry growth outlook of 1.0% with annual price escalation of 2%.

• High Growth: Strong future growth of 4.0% with annual price escalation of 2%.


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6.4.2 Forecast Operating Performance

Under both growth scenarios, the financial model identifies that the Saleyard will continue to operate with an increased annual deficit mainly as a result of the additional depreciation costs flowing from the high priority improvements.

Table 6-4 highlights the forecast performance for the next five years under the Low Growth scenario with 2020-21 being the first year of normalised operational revenue and costs. Table 6-5 shows the forecast performance for the high growth scenario.

In these Tables, the additional revenue, operating costs and depreciation have been shown to identify these items above existing levels to demonstrate the impact of future growth and investment resulting in an additional surplus / deficit per scenario. The total surplus / deficit shown is the current plus additional showing the estimated overall performance of the Saleyard in each year.

Table 6-4. Low Growth Scenario - Operating Performance

2019-20 2020-21 2021-22 2022-23 2023-24 Additional Revenue $2,466 $2,541 $2,617 $2,697 $2,778 Additional Operating Costs - $21,413 $21,948 $22,497 $23,059 Additional Depreciation - $104,452 $107,063 $109,739 $112,483 Additional Surplus/(Deficit)

$2,466 ($123,323) ($126,393) ($129,540) ($132,764)

Total Surplus/(Deficit)a

($58,373) ($184,436) ($187,749) ($191,904) ($194,503)

Note a). Forecast includes current operational revenue and costs Source: AEC

Table 6-5. High Growth Scenario – Operating Performance

2019-20 2020-21 2021-22 2022-23 2023-24 Additional Revenue $9,513 $10,092 $10,705 $11,356 $12,047 Additional Operating Costs - $21,413 $21,948 $22,497 $23,059 Additional Depreciation - $104,452 107,063 $109,739 $112,483 Additional Surplus/(Deficit)

$9,513 ($115,772) ($118,305) ($120,880) ($123,495)

Total Surplus/(Deficit)a

($50,974) ($168,966) ($163,485) ($157,275) ($150,283)

Note a). Forecast includes current operational revenue and costs Source: AEC

Under both scenarios, the Saleyard does not achieve profitability mainly due to the additional depreciation charges generated through the construction of the proposed improvements.

To achieve a break-even position or to significantly reduce the projected deficit, would require significantly higher growth than forecast to be realised, significantly increased fees and charges (including full application of fees) of approximately 10% per annum or a combination of both.

It is considered unlikely that either of these options would be realisable based on the current limitations and potential lifetime of the current site.

6.5 CASHFLOW In terms of cash flow, under the Low Growth scenario, the cumulative cash outflow over a 10-year period is $927,559, with cash outflows of $534,977 in 2019-20 due to the high priority improvement works.

The High Growth scenario results in a cumulative cash outflow of $503,000 over the same period, with positive cash flow commencing in 2023-24.

Appendix F provides full details of the Low and High Growth Scenario cash flow statements.


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6.6 ECONOMIC BENEFIT As previously reported, the Saleyard is estimated to yield a total value of $42.0M in livestock transactions per annum. This is expected to increase between 1% and 4% per annum following the implementation of the short to medium-term improvements. Additionally, the Saleyard is estimated to support $12.6 million in output for business within the Gympie local economy, of which $5.6 million is generated directly (including facility operations, stock movement, agent fees and spend of attendees). This activity supports, both directly and through flow-on impacts, the following level of economic activity:

• $6.6 million in GRP for the regional economy.

• $3.6 million in wages and salaries for workers.

• 50 FTEs employed.


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7. LONG TERM STRATEGY

7.1 LOCATION The current location of the Saleyard is not sustainable for the long-term i.e. 5 to 10 years. This is primarily due to the currently planned extent of urban development and encroachment in the vicinity, which will significantly increase the potential for pedestrian and vehicular conflicts associated with the operation of the Saleyard.

A secondary reason for seeking an alternative greenfield or brownfield site is the construction of Section D of the Bruce Highway. Detailed design for this 26km Section is nearing completion with the project fully funded and including a by-pass of Gympie with the corridor running to the east of the town, close to the railway line until Old Maryborough Road as shown in Figure 7-1.

Figure 7-1. Proposed Gympie By-Pass Route

Source: Department of Transport and Main Roads

This upgrade will ultimately see the separation of long-distance traffic from local traffic, including haulage of animals destined for the Saleyard.

With the completion of the by-pass, there is an opportunity to consider re-siting the Saleyard to a more accessible location for heavy vehicles, avoiding urban areas and providing a new contemporary and efficient saleyard.

Nolan Meats

Current Saleyard Location


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7.2 SUMMARY OF OPTIONS Planning for the long-term future of the Saleyard should commence within 1 – 2 years with a high-level consideration of the main viable options for the future of the Saleyard as follows:

• Do Nothing:

o Decision is not to re-locate the Saleyard but to maintain current operations on the current site where operational constraints do not exceed practical thresholds.

o There is minimal ongoing maintenance to maintain the functionality of the existing infrastructure and to achieve minimum compliance with standards and regulation.

o No further capital replacement or investment is made in the facility (Beyond what was invested as the immediate recommendations of this Plan).

o Sales continue at the current site.

o Likely outcome is a declining use of the Saleyard as users seek more accessible and modern Saleyards elsewhere with the saleyard closing by Year 5.

• Upgrade the Existing Saleyard:

o Decision is not to re-locate the Saleyard but to maintain current operations on the current site.

o The required level of investment in ongoing maintenance to maintain the functionality of the existing infrastructure and to meet or exceed compliance with standards and regulation.

o Further capital replacement or investment is made in the facility (as per the longer-term recommendations made in this Plan).

o Sales continue at the current site.

o Likely outcome is a slow declining use of the Saleyard as usage of the site becomes more difficult due to urban encroachment and users seek more accessible and modern Saleyards elsewhere with the Saleyard closing by Year 10.

• Cease Providing the Service:

o Decision is not to continue with Saleyard operations at a point in time in the future.

o There is minimal ongoing maintenance to maintain the functionality of the existing infrastructure and to achieve minimum compliance with standards and regulation.

o No further capital replacement or investment is made in the facility.

o Sales continue at the site until the designated date of closure.

o Likely outcome will be a rapidly declining use until final closure as buyers and sellers seek alternative Saleyards elsewhere.

• Immediately Relocate the Saleyard to a New Site:

o Decision is not to continue with current site of the Saleyard operations (excluding and not investing in the immediate and recommended capital works of this Plan) and to immediately seek to identify a suitable alternative site and commence construction of a new Saleyard facility as soon as possible.

o There is minimal ongoing maintenance to maintain the functionality of the existing infrastructure until the new Saleyard is constructed.

o No further longer-term capital replacement or investment is made in the current facility.

o Sales continue at the current site until the date of closure.

o Significant immediate investment is made in acquiring land and constructing a new contemporary Saleyard facility which is close to the confirmed location of the by-pass. See Section 7.3 below


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o Likely outcome is maintaining the current level of activity at the current facility with an increasing use of the new Saleyard once operations commence.

o Opportunities to explore alternative operating models.

• Continue with Current Saleyard and then Relocate to a New Site:

o Decision is not to continue with current site of the Saleyard operations beyond the next 5-10 years, aligning with the identification of a suitable alternative site and construction of a new Saleyard facility.

o There is minimal ongoing maintenance to maintain the functionality of the existing infrastructure (i.e. the immediate and recommended capital works outlined in this Plan) and to achieve minimum compliance with standards and regulation.

o No further capital replacement or investment is made in the current facility.

o Sales continue at the current site until the date of closure.

o Opportunities to explore alternative operating models.

o Significant investment is made in acquiring land and constructing a new contemporary Saleyard facility which is close to the confirmed location of the by-pass, and which can be co-located with complementary private sector services. See Section 7.3 below.

o Likely outcome is maintaining the current level of activity at the current facility with an increasing use of the new Saleyard once operations commence.

7.3 RECOMMENDATIONS The following recommendations are made and built in response to the key findings resulting from the STRATEGIC PLAN.

Recommendation 1: Commence planning for a new greenfield site including provision for an agribusiness precinct

Rationale: It is important that planning for a new greenfield site commence as soon as possible, due to the:

• Current state of facilities

• High level of capital required to bring up to a minimum standard

• The high likelihood of the facilities not being able to continue operations beyond a 10-year window due to urban encroachment

• The pending need for a larger sub-regional selling centre

• Gympie’s standing as the largest of the three sub regional selling centres.

There is support for the establishment of an agribusiness precinct in the region and colocation makes logistic and development sense.

Recommendation 2: Develop a high-level pre-feasibility study to support the development of a new facility on a greenfield site

It is recommended that due to the clearly identified need for a sub-regional saleyard in the Gympie region, that planning for a new greenfield site option should commence.

Whilst a greenfield site will require significant investment, it is not considered that Gympie Regional Council should lead this investment, but rather seek interest from the private sector through a market sounding exercise. Council’s role will be primarily to assist in identifying a suitable site and potentially offering financial and/or non- financial incentives.

The operating model for the new saleyard should also be changed resulting in private sector operational management.


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Rationale: Any significant investment in a new facility needs to respond to market demand and be a commercially viable venture. Key aspects to be considered in the pre-feasibility include the need to:

• Identify a range of potential sites and a preferred site

• Develop a preliminary functional design for the site and order of magnitude engineering and capital costs

• Develop a financial assessment to ensure it is a viable commercial concern

• Summarise the planning and environmental approval processes required to develop

• Develop investment attraction collateral summarising the opportunity.

It should be a pre-feasibility and not a detailed feasibility as any investor will need to undertake their own due diligence and will have preferences for layout and operational details. The pre-feasibility and business case should focus a concept on a specific site or sites, rather than a specific design

Recommendation 3: Seek private sector interest in the construction and/ or operation of the facility

Rationale: A greenfield site will require significant investment, it is recommended Gympie Regional Council seek interest and investment from the private sector to fund the construction of the facility. Incentives may be required to secure the land and or the capital to construct the facility.

Local Governments historically became engaged in the construction and operation of saleyards in response to a market failure to drive economic growth in regional areas in Australia. There are many successfully owned and operated saleyards in Australia. Where there is no longer any market failure present the imperative for local government to be involved diminishes significantly. Through a market sounding exercise. Council’s role should be primarily to:

• Identify a preferred site(s)

• Develop a high level (in principle) investment attraction collateral

• Identify and clarify any available investment incentive Gympie Council can bring to the establishment of the facility

• Actively market this collateral to potential investors (local, interstate and institutional)

• Plan for future reuse and remediate accordingly

Recommendation 4: Minimise capital expenditure on the current facility to ensure operations are continued and minimum health and safety measures are addressed.

Rationale: should the preceding recommendations be adopted it is possible a new facility would be constructed in the region within the next 5 years. However, to ensure a successful new facility it is important to maintain the current market at a minimum if not grow it. So it is critical operations at the current facility are maintained, however, given the short term nature of the future use of the current facility, it is unlikely the facility will recover any significant capital spend. Critical works could be limited to addressing the catwalk over existing holding pens (estimated at $43,000) (with no alteration to the current pen configuration) to aid safety and any other aspects of the High Priority Improvements, where there is sufficient budget.

7.4 FURTHER CONSIDERATIONS

7.4.1 Greenfield Site Construction Costs

Without a specific site identified, a detailed design and engineering scope and quantity surveyor cost estimates are not possible for a new build.

However, based on greenfield works for other recent saleyards, indicative square metre rates for construction costs are in the range of $900/m2 to $1,000/m2. Applying these rates to the current area of the Gympie Saleyards of 17,500/m2 based on the size to the existing built area, would see a capital cost of between $15.75 million and $17.50 million.


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These are indicative cost estimates only and relate to construction only and should be interpreted with caution. No land acquisition costs have been factored in to the cost estimates.

7.4.2 Site Selection & Pre-Feasibility Considerations

To determine the viability of a greenfield site, it is recommended that a (or multiple) sites be identified and a pre- feasibility study is developed, to examine the critical factors associated with the saleyard to support decision making on future direction and timing. This would include then inform a market sounding exercise for potential private sector saleyard operators.

Suggested criteria to be assessed in the feasibility study may be, but not limited to, those in Table 7-1.

Table 7-1. Suggested Feasibility Study Criteria

Need Description

Accessibility – Heavy Haulage Route

• A B-Double haulage route that avoids CBD and residential areas. • A route termination point that is close to a major highway. • There is a sufficient parking/ waiting area. • Close access to a compliant vehicle wash-down facility.

Accessibility –

Other Transport Routes

• Transport routes for rigid trucks and smaller transport vehicles and trailers that avoids CBD, residential areas and school zones.

• A route termination point that is close to a major highway. • There is a sufficient parking/ waiting area. • Close access to a compliant vehicle wash-down facility.

Reduction of Site Conflicts

• There is appropriate separation of heavy and light vehicles. • There is appropriate separation of pedestrians and vehicles. • Livestock movements do not create conflicts with either users, vehicles or

visitors.

Location & Orientation

• The topography of the site is suitable to support operations. • The site is gently sloping, allowing suitable natural drainage and capture of

run-off and naturally encouraging movement/ flow of stock. • Site is of sufficient size dependent on the expected levels of activity and

services to be provided. • The site is oriented to encourage natural movement/ flow of stock.

Planning/ Environmental Compliance & Animal Welfare

• Appropriately zoned site. • Saleyard design is able to comply with planning and environmental

regulations. • Saleyard design is able to comply with animal welfare regulations and best

practice. • Holding and selling pens have soft floors. • Holding and selling pen area is covered to provide shelter for livestock and

manage stormwater (i.e. reducing water treatment volumes). • Livestock flow is logical and efficient with minimum risk to handlers and the

public.

Livestock Flow and Handling • Unloading and loading area can accommodate the efficient processing of

livestock. • Handling of livestock can be done safely with minimised risk for saleyard

staff and users/ visitors.

Capacity • Saleyard has the capacity to accommodate up to 2,500 head per sale and 75,000 head annually.

Economic and Social Benefits • Maintains/ increases the level of locally retained economic and social benefits.

Brand/ Reputation • Has the potential to maintain/ increase prices for livestock. • Is seen as the premier selling facility in the region.

Capital and Operational Costs

• Capital costs are affordable and financially sustainable. • Federal and State government capital grants are available with a high

probability of success. • Operational surpluses and/or break-even can be achieved and be

sustained. Source: AEC


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REFERENCES

ABS (2017). Agricultural Commodities, Australia. Cat. No. 7121.0. ABS, Canberra.

ABS (2016), Agricultural commodities, Australia, 2014–15, cat. no. 7121.0, ABS, Canberra 2016.

ABS (2017b). Australian National Accounts: Input-Output Tables – Electronic Publication, 2014-15 tables. Cat. No. 5209.0.55.001, Australian Bureau of Statistics, Canberra.

ABS (2018). Consumer Price Index, Australia. Cat. No. 6401.0, Australian Bureau of Statistics, Canberra.

ACCC (2017), Cattle and Beef Market Study – Final Report. Commonwealth of Australia.

ABS (2017a). Census of Population and Housing 2016. TableBuilder. Australian Bureau of Statistics, Canberra.

Alston, M. and Kent, J. (2004). Social Impacts of Drought: a report to NSW Agriculture 2004. Centre for Rural Social Research, Charles Sturt University, Wagga Wagga, NSW.

Birchip Cropping Group (2007). Critical breaking point?: The effects of drought and other pressures on farming families: Final Report of the Twelve Month Study. Prepared for the Birchip Cropping Group, Birchip, Vic.

Gympie Regional Council (Unpublished). Data Provided. Unpublished data provided by Gympie Regional Council.

Gympie Regional Council (Unpublished). Gympie Saleyards Operational Activity. Unpublished data provided by Gympie Regional Council.

MLA (2014a). China-Australia Free Trade Agreement Announced. Available from: http://www.mla.com.au/News- and-resources/Industry-news/China-Australia-Free-Trade-Agreement-announced.

MLA (2017). Australia’s Beef Industry Fast Facts. Available from: https://www.mla.com.au/globalassets/mla- corporate/prices--markets/documents/trends--analysis/fast-facts--maps/mla_beef-fast-facts- 2017_final.pdf

MLA (2018a). Cattle Industry Projections - 2018. Available from: https://www.mla.com.au/globalassets/mla- corporate/prices--markets/documents/trends--analysis/cattle-projections/mla_australian-cattle-industry- projections-2018.pdf

MLA (2018b). Queensland Cattle Yard Survey 2016-17. Available from: https://www.mla.com.au/globalassets/mla- corporate/prices--markets/documents/saleyard-surveys/qld-cattle-saleyard-survey-16-17---final.pdf

National Heavy Vehicle Regulator (2018). Safety, accreditation & compliance/Chain of Responsibility. Available from https://www.nhvr.gov.au/safety-accreditation-compliance/chain-of-responsibility

Sullivan Livestock and Rural Services (2017). 2018 Sales Calendar. Sullivan Livestock and Rural Services.

Sullivan Livestock and Rural Services (unpublished). Gympie Saleyard Employee Information. Unpublished data provided by Sullivan Livestock and Rural Services.

Town and Country Auctions (unpublished). Horse Sale Information. Unpublished data provided by Town and Country Auctions.

West, G. R. (1993). User’s Guide, Input-Output Analysis for Practitioners an Interactive Input-Output Software Package Version 7.1. Department of Economics. University of Queensland, 1993.

http://www.mla.com.au/News-and-resources/Industry-news/China-Australia-Free-Trade-Agreement-announced

http://www.mla.com.au/News-and-resources/Industry-news/China-Australia-Free-Trade-Agreement-announced

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https://www.mla.com.au/globalassets/mla-corporate/prices--markets/documents/trends--analysis/cattle-projections/mla_australian-cattle-industry-projections-2018.pdf



https://www.mla.com.au/globalassets/mla-corporate/prices--markets/documents/saleyard-surveys/qld-cattle-saleyard-survey-16-17---final.pdf

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https://www.nhvr.gov.au/safety-accreditation-compliance/chain-of-responsibility


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APPENDIX A: LIVESTOCK SELLING TRENDS

The last ten years has been a period of restructuring in the Australian saleyards sector with major rationalisation of older, local government owned and operated facilities in particular. The restructuring has been in response to several drivers of change including those specific to the agricultural sector as well as broader macro trends in policy, market and environmental factors. Key trends observed are examined below.

POLICY FACTORS

Animal Welfare Considerations

Animal welfare requirements for saleyards are only provided as guidelines for saleyard operators and are not currently enforced. However, increasing consumer and industry demands indicate the focus and requirement to appropriately cater for animal welfare guidelines will increase in the future, resulting in the development of legislative and enforceable animal welfare obligations for saleyard operators.

Key considerations relating to animal welfare will be the size of the pens, the flow logic of the facility and expectations relating to the future requirements (and designs that support and minimise risk in this area).

Environmental Legislation

Any future development will need to ensure compliance with environmental legislation and associated conditions to ensure ecological processes are maintained and quality of life is not threatened. Key in this will be appropriate water (storm and waste) management systems and processes. It is likely the cost of roofing (to separate storm from waste water) could be justified by reducing the need to treat all stormwater runoff to increasingly stringent standards.

Chain of Responsibility (CoR) Legislation

On 1 October 2018, the Heavy Vehicle National Law (HVNL) will be amended to provide that every party in the heavy transport supply chain has a duty to ensure the safety of their transport activities. This will require each party in the supply chain, including Gympie Regional Council, to have safety management systems and controls in place, such as business practices, training, procedures and review processes that:

• Identify, assess, evaluate and control risk.

• Manage compliance with speed, fatigue, mass, dimension, loading and vehicle standards through identified best practice.

• Involve regular reporting, including to executive officers.

• Document or record actions to manage safety.

A heavy vehicle is defined as one that has a Gross Vehicle Mass (GVM) of over 4.5 tonnes and specific CoR responsibilities that would be captured for the Gympie Saleyard would include:

• Managing or controlling premises where loading or unloading takes place.

• Scheduling goods for transport.

• Packing, loading or unloading goods.

• Contracting others to conduct work at the Saleyard by ensuring contracts include specifications on how the requirements of the HVNL are to be met and what performance and compliance reporting is needed.

To avoid breaches of the HVNL, Council will have to undertake steps to ensure that:

• All loads are within legal limits and properly restrained.

• Ensure any Council trucks used at the Saleyard are properly maintained to a roadworthy standard.

• Employees are trained so that they understand their obligations and are empowered to act.


42

• Contractors and users of the Saleyard fully understand the requirements of the law.

• Business practices, risk management processes and controls are in place to ensure safe operations and are regularly reviewed.

ENVIRONMENTAL FACTORS

Climatic Variation

Even in relatively small livestock production areas there can be significant climatic variations on a year to year basis. This has implications for saleyards as variations in rainfall patterns in particular are a key driver of saleyards throughput.

Smaller yards are often reliant on a relatively stable volume of throughput and cannot handle either very large sales or prolonged periods of smaller sales, particularly if the saleyard is reliant on one, local, catchment. Larger saleyards, which draw stock from a broader catchment, are better placed to handle the additional throughput required by the biggest sale days and to offset regional downturns in one area with increased throughput from another.

Weather Conditions

Long term weather conditions play a significant role in determining the supply of livestock for saleyards. The relationship between climate and throughput is complex with poor conditions, increasing throughput due to destocking while better conditions can decrease throughput while herds are rebuilt or increase throughput as production increases.

INDUSTRY STRUCTURAL FACTORS

Incorporation of Technological Change

Newer regional selling facilities boast state of the art facilities compared to traditional saleyards. These facilities feature roofing, soft floors and modernised drafting, weighing and transport facilities. The stock flow of new facilities is intended to be more sophisticated and allow for reduced stock processing time, minimum stress to animals and good opportunities for buyers to observe the stock.

Any new facility will need to ensure competitiveness with these facilities as they will set the baseline of market expectation regarding operating standards and buyer/seller and agent expectations.

Economies of Scale

There are many instances of larger livestock selling centres effectively overtaking smaller yards and operating as a regional selling centre and in doing so incorporating newer technologies (outlined above).

These larger yards have better economies of scale and generally deliver enhanced markets due to stronger throughput, efficient processing, new technologies, more responsive prices and greater market strength. Smaller yards need to develop niche services, grow and deliver efficient service provision or risk becoming obsolete. In the majority of cases, the larger regional yards delivered are privately owned or facilitated by a consortia approach. This is a change from the history of how most selling centres evolved in Australia, where Local Government stepped into the market to address a distinct market failure. With improved transport efficiencies and enhanced technologies larger regional yards are realising economies of scale and there is a declining need for small area market intervention.

Reduced Logistics Costs

Over recent years, improvements in road infrastructure, vehicle technology and understanding of meat science has increased the distance which sheep and cattle can be transported for sale cost effectively without a deleterious effect on the animal or the quality of the end product.

The impact of reduced logistics costs has been increased competition between saleyards. Historically, saleyards have not competed with each other to attract throughput, instead they are relying on the geographic convenience


43

to producers to attract cattle. However, it is no longer uncommon for producers to sell sock at facilities hundreds of kilometres away in order to access the ‘best market’ (i.e. greatest number of buyers and highest sale price).

The impact of these drivers can be seen in the emergence of regional selling centres, saleyards which have been developed to replace traditional facilities with larger, safer and more environmentally sensitive facilities which exploit economies of scale. Examples of these developments in other regions around Australia include Carcoar, Wagga Wagga, Roma and Dubbo.

Changing Selling Methods

In common with many other industries, the livestock sector has seen the emergence of new selling techniques, including:

• Over-the-hooks (direct) selling: encompasses graziers selling directly to processers from the paddock and typically includes larger lot sizes and relatively consistent product (i.e. homogenous size, weight and fat scores) to generate value for the grazier. This has always taken place and is unlikely to drive significant changes in market share for livestock selling centres moving forward.

Over the past few years, there has been an increase in direct selling at a State and National level driven by increasing strength of over-the-hooks prices which is likely to continue to strengthen over time, however, the market share is relatively small compared to mainstream auctioning methods.

• Abattoirs typically acquire the majority of their cattle from within 400 km of the plant at which they are processed. Accordingly, the bulk of competition for the acquisition of prime cattle is generally regional, rather than state-based or national. In most regions of Australia, producers have a range of different buyers potentially competing for their cattle. These buyers can include the major supermarket chains, processors or live exporters.

However, the presence of buyers in particular regional markets and the degree of competition between them for prime cattle can vary according to a range of seasonal and commercial factors. As such, there are circumstances where further consolidation in the processing sector through mergers or acquisitions, or other conduct, could substantially lessen competition.

To reduce the impacts of direct selling it will be important to provide a facility that sufficiently caters to the needs of buyers and sellers (i.e. one that facilitates and cultivates a ‘healthy’ market). A successful market generating good prices will be highly competitive and support the attraction of buyers and sellers.

• On-Line Selling: On-line selling through facilities such as “Auctions Plus” presents opportunities for graziers to trade their stock without the use of saleyards. AuctionsPlus is a service provider to rural communities offering real-time Internet Auctions. AuctionsPlus allows commodity transaction, reserve price setting and legal change of ownership without the seller, buyer or product having to come together physically at the time of the sale.

AuctionsPlus Pty Limited started in 1986 as Computer Aided Livestock Marketing (CALM). CALM was established as a Section 16 Committee of the Australian Meat and Livestock Corporation (AMLC) and commenced trading on 1 July 1987. During a restructure of the AMLC during 1996, CALM was separated from the AMLC and formed into a new company - CALM Services Pty Limited. In 2000, CALM Services changed its name to AuctionsPlus Pty Limited. Following a modest take up, AuctionsPlus now has an established market share and may experience continued incremental increases in market share moving forward.

• Conduct in Cattle Markets: Saleyard auctions can be an efficient way to sell cattle, however, this potential is removed if buyers are able to coordinate bids. There are several characteristics of saleyard auctions which make them susceptible to anti-competitive conduct. For example, repeated interactions between regular buyers provide the opportunity to develop shared strategies to influence the outcome of an auction, and to quickly deal with those who break away from these strategies.

Weak saleyard competition will have a broad impact on the industry, as auction prices act as an important price benchmark for other saleyards and for other sales channels. There is a high risk of conflicts of interest occurring in saleyards. Livestock agents may represent both buyers and sellers, and commission buyers commonly represent multiple customers at the same time. The extent to which a conflict of interest exists is


44

often not transparent to producers. However, commission buyers can also increase competition in saleyards where it would otherwise not be cost-effective for every individual buyer to attend in person.

The key for traditional saleyards to compete against alternative selling methods is to generate and maintain a competitive market place with strong prices.


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APPENDIX B: INPUT-OUTPUT OVERVIEW

Input-Output analysis demonstrates inter-industry relationships in an economy, depicting how the output of one industry is purchased by other industries, households, the government and external parties (i.e. exports), as well as expenditure on other factors of production such as labour, capital and imports. Input-Output analysis shows the direct and indirect (flow-on) effects of one sector on other sectors and the general economy. As such, Input-Output modelling can be used to demonstrate the economic contribution of a sector on the overall economy and how much the economy relies on this sector or to examine a change in final demand of any one sector and the resultant change in activity of its supporting sectors.

The economic contribution can be traced through the economic system via:

• Direct impacts, which represent the economic activity of the industry experiencing the stimulus.

• Flow-on impacts, which are disaggregated to:

o Industry Support Effects (Type I), which comprise the effects from direct expenditure on goods and services by the industry experiencing the stimulus (direct suppliers to the industry), as well as the second and subsequent round effects of increased purchases by suppliers in response to increased sales.

o Household Consumption Effects (Type II), which represent the consumption induced activity from additional household expenditure on goods and services resulting from additional wages and salaries being paid within the economic system.

These effects can be identified through the examination of four types of impacts:

• Output: Refers to the gross value of goods and services transacted, including the costs of goods and services used in the development and provision of the final product. Output typically overstates the economic impacts as it counts all goods and services used in one stage of production as an input to later stages of production, hence counting their contribution more than once.

• Gross product: Refers to the value of output after deducting the cost of goods and services inputs in the production process. Gross product (e.g., Gross Regional Product) defines a true net economic contribution and is subsequently the preferred measure for assessing economic impacts.

• Income: Measures the level of wages and salaries paid to employees of the industry under consideration and to other industries benefiting from the project.

• Employment: Refers to the part-time and full-time employment positions generated by the economic shock, both directly and indirectly through flow-on activity, and is expressed in in terms of full time equivalent (FTE) positions.

Input-Output multipliers can be derived from open (Type I) Input-Output models or closed (Type II) models. Open models show the direct effects of spending in a particular industry as well as the indirect or flow-on (industrial support) effects of additional activities undertaken by industries increasing their activity in response to the direct spending.

Closed models re-circulate the labour income earned as a result of the initial spending through other industry and commodity groups to estimate consumption induced effects (or impacts from increased household consumption).

MODEL DEVELOPMENT Multipliers used in this assessment are derived from sub-regional transaction tables developed specifically for this project. The process of developing a sub-regional transaction table involves developing regional estimates of gross production and purchasing patterns based on a parent table, in this case, the 2014-15 Australian transaction table (ABS, 2017b).

Estimates of gross production (by industry) in the study areas were developed based on the percent contribution to employment (by place of work) of the study areas to the Australian economy (estimated using 2011 and 2016


46

Census of Population and Housing data) and applied to Australian gross output identified in the 2014-15 Australian table.

Industry purchasing patterns within the study area were estimated using a process of cross industry location quotients and demand-supply pool production functions as described in West (1993).

Where appropriate, values were rebased from 2014-15 (as used in the Australian national IO transaction tables) to 2017-18 values using the Consumer Price Index (ABS, 2018).

MODELLING ASSUMPTIONS The key assumptions and limitations of Input-Output analysis include:

• Lack of supply-side constraints: The most significant limitation of economic impact analysis using Input- Output multipliers is the implicit assumption that the economy has no supply-side constraints so the supply of each good is perfectly elastic. That is, it is assumed that extra output can be produced in one area without taking resources away from other activities, thus overstating economic impacts. The actual impact is likely to be dependent on the extent to which the economy is operating at or near capacity.

• Fixed prices: Constraints on the availability of inputs, such as skilled labour, require prices to act as a rationing device. In assessments using Input-Output multipliers, where factors of production are assumed to be limitless, this rationing response is assumed not to occur. The system is in equilibrium at given prices, and prices are assumed to be unaffected by policy and any crowding out effects are not captured. This is not the case in an economic system subject to external influences.

• Fixed ratios for intermediate inputs and production (linear production function): Economic impact analysis using Input-Output multipliers implicitly assumes that there is a fixed input structure in each industry and fixed ratios for production. That is, the input function is generally assumed linear and homogenous of degree one (which implies constant returns to scale and no substitution between inputs). As such, impact analysis using Input-Output multipliers can be seen to describe average effects, not marginal effects. For example, increased demand for a product is assumed to imply an equal increase in production for that product. In reality, however, it may be more efficient to increase imports or divert some exports to local consumption rather than increasing local production by the full amount. Further, it is assumed each commodity (or group of commodities) is supplied by a single industry or sector of production. This implies there is only one method used to produce each commodity and that each sector has only one primary output.

• No allowance for economies of scope: The total effect of carrying on several types of production is the sum of the separate effects. This rules out external economies and diseconomies and is known simply as the “additivity assumption”. This generally does not reflect real world operations.

• No allowance for purchasers’ marginal responses to change: Economic impact analysis using multipliers assumes that households consume goods and services in exact proportions to their initial budget shares. For example, the household budget share of some goods might increase as household income increases. This equally applies to industrial consumption of intermediate inputs and factors of production.

• Absence of budget constraints: Assessments of economic impacts using multipliers that consider consumption induced effects (type two multipliers) implicitly assume that household and government consumption is not subject to budget constraints.

Despite these limitations, Input-Output techniques provide a solid approach for taking account of the inter- relationships between the various sectors of the economy in the short-term and provide useful insight into the quantum of final demand for goods and services, both directly and indirectly, likely to be generated by a project.

In addition to the general limitations of Input-Output Analysis, there are two other factors that need to be considered when assessing the outputs of sub-regional transaction table developed using this approach, namely:

• It is assumed the sub-region has similar technology and demand/ consumption patterns as the parent (Australia) table (e.g. the ratio of employee compensation to employees for each industry is held constant).


47

• Intra-regional cross-industry purchasing patterns for a given sector vary from the national tables depending on the prominence of the sector in the regional economy compared to its input sectors. Typically, sectors that are more prominent in the region (compared to the national economy) will be assessed as purchasing a higher proportion of imports from input sectors than at the national level, and vice versa.

MODEL DRIVERS AND ASSUMPTIONS In 2018, the Gympie Saleyards hosted 50 sale days for cattle, 2 stud sales days, and 4 sale days for horses (Sullivan Livestock & Rural Services, 2017). At these sale days, the saleyards are estimated to have processed approximately 45,237 sales of cattle, 260 stud sales and 736 sales of horses over the course of the year, yielding a total value of $42.0M in livestock transactions.

This activity delivers economic benefits to the Gympie local economy through the following avenues:

• Operational activities of the Gympie Saleyards, including facility operations as well as stock movement activity.

• Livestock agent activity, providing revenue to agents through agent fees.

• Expenditure on goods and services of people attending the sale days within the local economy, that would not otherwise occur without the sale day.

The assumptions used in assessing each of these impacts are outlined below.

Saleyard Facility Operations

The Gympie Saleyards facility is estimated to have annual operating expenses of approximately $275,000. National benchmarks from input-output multipliers for the wholesale trade industry indicate this level of activity typically generates around $340,000 in industry output.

Table 7-2. Operational Costs

Operations Direct Activity Output $340,000 Operating Expenses $275,000 Employment (FTEs) 1

Source: Gympie Regional Council (unpublished), AEC.

Contribution from Stock Movement

In addition to the direct activity of the saleyard facility itself, data from Gympie Regional Council (unpublished) indicates sale days directly provide employment for approximately five FTE employees for the transport and movement of stock. National input-output multipliers for road transport industry were used to estimate the output, operating expenses and wages, salaries and other labour costs that may be associated with this level employment for stock movement (summarised in the table below).

Table 7-3. Stock Movement Drivers

Operations Direct Activity Output $1,260,000 Operating Expenses $750,000 Wages, Salaries and Other Labour Costs $320,000 Employment (FTEs) 5

Source: Gympie Regional Council, AEC

Contribution from Agent Spend

Sullivan Livestock and Rural Services, the agent that runs the 50 cattle sale days, receive commission of 5% on the total livestock trade (Sullivan Livestock and Rural Services). This commission rate has also been assumed for


48

stud and horse sales. With a total sales value of $42.0 million in livestock transactions, this provides total agent fees of $2.1 million.

Sullivan Livestock and Rural Services employs 21 staff for cattle sale days (Sullivan Livestock and Rural Services, unpublished). It was assumed a similar number of staff would be required for the stud and horse sale days. This was converted to an FTE basis based on the number of sale days each year, and an assumed 260 working days each year (providing 4.5 FTE employees).

Table 7-4. Agent Spend in Gympie

Operations Direct Activity

Total Livestock Trade ($M)

$42.0

Agents Fees ($M) $2.1

Agents Employed (FTEs)

4.5

Source: Gympie Regional Council, Sullivan Livestock, AEC

Expenditure of Sale Day Attendees

It is estimated approximately 225 people attend cattle sale days on average throughout the year (Gympie Regional Council, unpublished), 300 people attend stud sale days on average (Gympie Regional Council, unpublished), while around 750 people attend horse sale days on average (Town and Country Auctions, unpublished). Expenditure patterns of people attending sale days was estimated based on intercept surveys, which included questions regarding what sale day attendees spent in the Gympie economy and what they would have spent in the economy regardless of the sale day (with the remainder representing the expenditure impact due to the saleyards). See Appendices C and D for more detail on the survey questions and responses.

Key findings from the survey regarding expenditure within the economy are:

• On average, attendees came to 18.4 sales throughout the year.

• On average, attendees spent $262 in the Gympie economy on a sale day (excluding spend at the saleyards themselves). Of this, attendees estimate they would have spent 50.5% regardless of the sale days ($132), with the remaining $130 net additional expenditure that would not otherwise have occurred without the sale day (this represents the expenditure benefit per person due to the saleyards).

• Key items of expenditure by attendees that would not otherwise have occurred without the sale day include:

o General farm supplies ($77 per person per sale day)

o Fuel ($14)

o Food and beverages ($11)

o Farm equipment purchases ($10).

Estimates of expenditure due to the saleyards were multiplied by the total number of attendees at sale days throughout the year. Expenditure categories were allocated to their most relevant corresponding industry within the Input-Output model summarises the expenditure within the Gympie economy due to the saleyards, split by relevant Input-Output industry, using the approach outlined above.

Table 7-5. Expenditure of Sale Day Attendees by Industry

Industry Expenditur e

Retail Trade $900,587 Wholesale Trade $776,289


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Industry Expenditur

e Food and Beverage Services $169,106 Personal Services $50,275 Road Transport $10,084 Heritage, Creative and Performing Arts $6,748 Sports and Recreation $6,748 Gambling $6,748 Accommodation $2,664

Source: AEC


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APPENDIX C: SURVEY QUESTIONS

SECTION A: ABOUT YOU

A1. What is the postcode of your residence? Record Postcode:

A2. What is the primary purpose of your visit to the saleyard today?

1 Working here (not Saleyard Management) 2 Buyer – Private 3 Buyer – Agent 4 Seller – Private 5 Seller – Agent 6 Both Buyer and Seller 7 Saleyard Management 8 Livestock Transport 9 Social 10 Agent employee 11 Other 99 Don’t know/Unsure

A3. How often do you attend the cattle sales at the Gympie Saleyard?

1 Daily 2 Monthly 3 Fortnightly 4 Monthly 5 Quarterly 6 Half-yearly 7 Yearly 95 Other (Please specify ) 99 Don’t Know/Unsure

A4. What type of sales do you attend at the Gympie Saleyard?

1 Cattle 2 Calf 3 Horse 95 Other (Please specify )

A5. Where else do you buy or sell your stock? Is it from…

1 Other saleyard auctions 2 Private paddock sales 3 Direct to abattoir 4 Auction plus 95 Other SPECIFY 99 Nowhere else

A6. Which of the following best describes how the Gympie Saleyard meets your needs?

1 Much more than expected 2 More than expected 3 As expected 4 Less than expected 5 Much less than expected 99 Don’t know/Unsure


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A7a) Thinking about improvements here at the Gympie Saleyard, can you tell us which of the following possible

enhancements are important to you? Q7B. And of these, which one do you consider to be the MOST important? Q7A Q7B

Important factors

MULTIPLE RESPONSE

Most Important factor

SINGLE RESPONSE

i. Vehicle Accessibility 1 2

ii. Canteen 1 2

iii. Amenities 1 2

iv. Yard capacity and/or infrastructure 1 2

v. Roof over yards 1 2

vi. Truck wash-down facility 1 2

vii. Parking 1 2

viii. Other SPECIFY 1 2

SECTION B: SPENDING IN GYMPIE ON A SALEDAY

B1. Is Gympie your primary shopping service centre for general supplies? That is, for local groceries, general retail, agricultural supplies, machinery and equipment?

1 Yes 2 No

B2. In which town is your primary shopping service centre located?

RECORD: _

B3. On a sale day what do you estimate your spend at the Canteen.

1 $ average daily sale day spend

B4. On a sale day, what do you estimate would be your average spend per day, excluding any spend on livestock, on goods and services in Gympie?

1 $ average daily sale day spend (per visit)


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B5. You estimated your average spend per day is $ when you visit Gympie for sale day. I’m going

to read out a number of things that you may have spent your money on whilst in Gympie, excluding any spend on livestock, as a result of your trip to the saleyard. Could you please estimate the share or percentage of your expenditure on the following items?

i. General farm supplies %

ii. Farm equipment purchases (tractors, irrigation etc) %

iii. Food and beverages from cafes, restaurants, bars, pubs, or other food vendors (not at the saleyards)

%

iv. Accommodation %

v. Transport %

vi. Fuel %

vii. Entertainment %

viii. Personal Goods/Services (Clothes, Shoes, Hairdresser) %

ix. Other SPECIFY %

TOTAL MUST BE NO MORE THAN 100% %

x. I don’t spend any money in Gympie outside livestock 1

B6. How would this expenditure change in Gympie if you did not attend the sale day?

1 No change – I would continue to make nonlivestock purchases in Gympie regardless of attending sale days 2 Some change – some of my spend would be made outside Gympie 3 Total change – 100% of the spending would be made outside Gympie

B7. You have indicated that there would be some change, what proportion of spend do you think would be made outside the region?

RECORD: %

SECTION C: CONTRIBUTIONS TO GYMPIE’S SALEYARD DEVELOPMENT

C1. In your opinion, what is the single most important thing to support Gympie’s Saleyard development into the future as a premium selling centre?


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SECTION D: PROFILE

D1. What is your gender 1 Female 2 Male 3 X, other (Indeterminate/Intersex/Unspecified)

D2. Do you own a farm or agricultural property? SINGLE RESPONSE

1 Yes, own a farm / agricultural property 2 No, do not own a farm / agricultural property 99 Refused

D3. Are you registered as a? 1 Primary Producer 2 Hobby Farmer 3 Other


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APPENDIX D: SURVEY RESPONSES

A1: What is the postcode of your residence?

A2: What is the primary purpose of your visit to the Saleyard today?

90.00% 80.00% 70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00%

0.00% Gympie Fraser Coast area Noosa area No answer Burnett area Other

TOTAL Intercept Online

Chart Title 70%

60%

50%

40%

30%

20%

10%

0%

TOTAL Intercept Online


55

A3: How often do you attend the cattle sales at the Saleyard?

A4: What type of sales do you attend at the Saleyard?

40%

35%

30%

25%

20%

15%

10%

5%

0% Daily Weekly Fortnightly Monthly Quarterly Halfyearly Yearly Other Unsure

NET Intercept Online


Unsure Other Horse Calf Cattle

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%


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A5: Where else do you buy or sell your stock?

A6: Which of the following best describes how the Saleyard meets your needs?

45% 40% 35% 30% 25% 20% 15% 10%

5%

0% Nowhere else Private paddock Direct to abattoir Other saleyard Other Auction plus

sales auctions


70.0%

60.0%

50.0%

40.0%

30.0%

20.0%

10.0%

0.0% Much more than More than expected

expected As expected Less than expected Much less than

expected



57

A7a: Thinking about improvements here at the Saleyard, can you tell us which of the following possible enhancements are important to you?

A7b: And of these, which one do you consider to be the most important?

70% 60% 50% 40% 30% 20% 10%

0%



Other Truck washdown

facility

Canteen Vehicle Accessibility

Parking Amenities Roof over yards

Yard capacity and/or

infrastructure

45% 40% 35% 30% 25% 20% 15% 10%

5%

0%


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B2: In which town is your primary shopping service centre located?

B5: How would this expenditure change in Gympie if you did not attend the sale day?

40%

35%

30%

25%

20%

15%

10%

5%

0% Murgon Maryborough Kingaroy Prefer not to say Other


45%

40%

35%

30%

25%

20%

15%

10%

5%

0% No change I would continue to Some change some of my spend Total change 100% of the make nonlivestock purchases in would be made outside Gympie spending would be made outside Gympie regardless of attending Gympie

sale days



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APPENDIX E: GRANT FUNDING OPPORTUNITIES

2019–21 Local Government Grants and Subsidies Program – part of $58.0 million

http://www.dlgrma.qld.gov.au/local-government/grants/2019-21-lggsp.html

Works for Queensland program – minimum $1.0 million

http://www.dlgrma.qld.gov.au/local-government/grants/works-for-queensland

Building our Regions - $5.0 million

http://www.statedevelopment.qld.gov.au/regional-development/building-our-regions.html

Heavy Vehicle Safety and Productivity Program - $5.0 million

https://investment.infrastructure.gov.au/infrastructure_investment/heavy_vehicle_safety_and_productivity.aspx

Small and Medium Enterprises (SME) Export Hubs - $1.5 million

https://www.grants.gov.au/?event=public.GO.show&GOUUID=0CFB383B-A410-55B0-534D874D996DC342

Everyone's Environment grants program - $100,000

https://www.qld.gov.au/environment/pollution/funding/everyones

Plan Reform - Innovation & Incentive Fund - $4.5 million

https://www.grants.services.qld.gov.au/#/service- details/62820?answers=1006,1004,2003,2008,4004,3013,3017,3018,5002&sortBy=status&sortDir=desc

Royalties for the Regions - $20 million

https://www.grants.services.qld.gov.au/#/service- details/62809?answers=1006,1004,2003,2008,4004,3013,3017,3018,5002&sortBy=status&sortDir=desc

Stronger Communities Programme - $25,000

https://regional.gov.au/regional/programs/stronger-communities.aspx

Community Development Grants Programme - $35 million

https://regional.gov.au/regional/programs/community-development-grants.aspx

Building Better Regions Fund Infrastructure Projects Stream - $10.0 million

https://www.business.gov.au/assistance/building-better-regions-fund/building-better-regions-fund-infrastructure- projects

• Examples for BBRF approved Sales Yards

- https://www.beefcentral.com/markets/roma-saleyard-wins-big-in-latest-federal-funding/ - http://www.mrsc.vic.gov.au/About-Council/News/News/Successful-grant-application-for-Kyneton-

Saleyards - http://www.maranoa.qld.gov.au/home/-/asset_publisher/7ksF/content/a-new-era-set-for-roma-saleyards-

council-secures-funding-for-multi-million-dollar-development-project - https://www.inverelltimes.com.au/story/5516399/inverell-saleyards-set-for-75-million-redevelopment/

Regional Jobs and Investment Package - $30.0 million

https://regional.gov.au/regional/programs/regional-jobs-investment-package.aspx

• Examples for RJIP approved Sales Yards

- https://www.queenslandcountrylife.com.au/story/5271066/wide-bay-businesses-share-in-12m-funding- boost/

http://www.dlgrma.qld.gov.au/local-government/grants/2019-21-lggsp.html

http://www.dlgrma.qld.gov.au/local-government/grants/works-for-queensland

http://www.statedevelopment.qld.gov.au/regional-development/building-our-regions.html

https://investment.infrastructure.gov.au/infrastructure_investment/heavy_vehicle_safety_and_productivity.aspx

https://www.grants.gov.au/?event=public.GO.show&GOUUID=0CFB383B-A410-55B0-534D874D996DC342

https://www.qld.gov.au/environment/pollution/funding/everyones

https://www.grants.services.qld.gov.au/%23/service-details/62820?answers=1006%2C1004%2C2003%2C2008%2C4004%2C3013%2C3017%2C3018%2C5002&sortBy=status&sortDir=desc




https://regional.gov.au/regional/programs/stronger-communities.aspx

https://regional.gov.au/regional/programs/community-development-grants.aspx

https://www.business.gov.au/assistance/building-better-regions-fund/building-better-regions-fund-infrastructure-projects

https://www.business.gov.au/assistance/building-better-regions-fund/building-better-regions-fund-infrastructure-projects

https://www.beefcentral.com/markets/roma-saleyard-wins-big-in-latest-federal-funding/

http://www.mrsc.vic.gov.au/About-Council/News/News/Successful-grant-application-for-Kyneton-Saleyards



http://www.maranoa.qld.gov.au/home/-/asset_publisher/7ksF/content/a-new-era-set-for-roma-saleyards-council-secures-funding-for-multi-million-dollar-development-project



https://www.inverelltimes.com.au/story/5516399/inverell-saleyards-set-for-75-million-redevelopment/

https://regional.gov.au/regional/programs/regional-jobs-investment-package.aspx

https://www.queenslandcountrylife.com.au/story/5271066/wide-bay-businesses-share-in-12m-funding-boost/




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APPENDIX F: CASHFLOW STATEMENTS

LOW GROWTH SCENARIO

Cash Flow 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 Cash Flow from Operating Activities

Total Revenue -$ 248,660 -$ 256,100 -$ 263,763 -$ 271,655 -$ 279,785 -$ 288,159 -$ 296,784 -$ 305,668 -$ 314,818 -$ 324,244 Total Operational Costs $ 275,000 $ 281,875 $ 310,334 $ 318,093 $ 326,045 $ 334,196 $ 342,551 $ 351,115 $ 359,893 $ 368,890 Depreciation $ 31,803 $ 32,598 $ 137,865 $ 141,311 $ 144,844 $ 148,465 $ 152,177 $ 155,981 $ 159,881 $ 163,878 Net Income -$ 58,143 -$ 58,373 -$ 184,436 -$ 187,749 -$ 191,104 -$ 194,503 -$ 197,944 -$ 201,428 -$ 204,955 -$ 208,524 Adjustment for Depreciation $ 31,803 $ 32,598 $ 137,865 $ 141,311 $ 144,844 $ 148,465 $ 152,177 $ 155,981 $ 159,881 $ 163,878 Adjustments for Working Capital $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Net Cash Flow from Operations -$ 26,340 -$ 25,775 -$ 46,572 -$ 46,437 -$ 46,260 -$ 46,038 -$ 45,768 -$ 45,447 -$ 45,075 -$ 44,646 Cash Flow from Investing Activities

Cash Paid for Assets $ - -$ 1,044,516 $ - $ - $ - $ - $ - $ - $ - $ - Cash Received for Assets $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Net Cash Flow from Investing $ - -$ 1,044,516 $ - $ - $ - $ - $ - $ - $ - $ - Cash Flow from Financing Activities

Cash Received for Capital Subsidies $ - $ 535,314 $ - $ - $ - $ - $ - $ - $ - $ - Cash Received for Borrowings $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Cash Paid for Borrowing Repayments $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Net Cash Flow from Financing $ - $ 535,314 $ - $ - $ - $ - $ - $ - $ - $ - Annual Net Increase/(Decrease) in Cash -$ 26,340 -$ 534,977 -$ 46,572 -$ 46,437 -$ 46,260 -$ 46,038 -$ 45,768 -$ 45,447 -$ 45,075 -$ 44,646 Cumulative Increase/(Decrease) in Cash -$ 26,340 -$ 561,316 -$ 607,888 -$ 654,326 -$ 700,586 -$ 746,623 -$ 792,391 -$ 837,838 -$ 882,913 -$ 927,559


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HIGH GROWTH SCENARIO

Cash Flow 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 Cash Flow from Operating Activities

Total Revenue -$ 248,660 -$ 263,499 -$ 279,234 -$ 295,919 -$ 313,614 -$ 332,378 -$ 352,277 -$ 373,380 -$ 395,760 -$ 419,494 Total Operational Costs $ 275,000 $ 281,875 $ 310,334 $ 318,093 $ 326,045 $ 334,196 $ 342,551 $ 351,115 $ 359,893 $ 368,890 Depreciation $ 31,803 $ 32,598 $ 137,865 $ 141,311 $ 144,844 $ 148,465 $ 152,177 $ 155,981 $ 159,881 $ 163,878 Net Income -$ 58,143 -$ 50,974 -$ 168,966 -$ 163,485 -$ 157,275 -$ 150,283 -$ 142,451 -$ 133,716 -$ 124,014 -$ 113,274 Adjustment for Depreciation $ 31,803 $ 32,598 $ 137,865 $ 141,311 $ 144,844 $ 148,465 $ 152,177 $ 155,981 $ 159,881 $ 163,878 Adjustments for Working Capital $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Net Cash Flow from Operations -$ 26,340 -$ 18,376 -$ 31,101 -$ 22,173 -$ 12,431 -$ 1,818 $ 9,726 $ 22,265 $ 35,867 $ 50,603 Cash Flow from Investing Activities

Cash Paid for Assets $ - -$ 1,044,516 $ - $ - $ - $ - $ - $ - $ - $ - Cash Received for Assets $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Net Cash Flow from Investing $ - -$ 1,044,516 $ - $ - $ - $ - $ - $ - $ - $ - Cash Flow from Financing Activities

Cash Received for Capital Subsidies $ - $ 535,314 $ - $ - $ - $ - $ - $ - $ - $ - Cash Received for Borrowings $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Cash Paid for Borrowing Repayments $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Net Cash Flow from Financing $ - $ 535,314 $ - $ - $ - $ - $ - $ - $ - $ - Annual Net Increase/(Decrease) in Cash -$ 26,340 -$ 527,578 -$ 31,101 -$ 22,173 -$ 12,431 -$ 1,818 $ 9,726 $ 22,265 $ 35,867 $ 50,603 Cumulative Increase/(Decrease) in Cash -$ 26,340 -$ 553,918 -$ 585,018 -$ 607,192 -$ 619,623 -$ 621,441 -$ 611,715 -$ 589,450 -$ 553,583 -$ 502,980


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APPENDIX G: MODEL CODE OF PRACTICE FOR LIVESTOCK SALEYARDS AND LAIRAGES

STRUCTURAL REQUIREMENTS

The structure of a facility can dictate the relative ease and safety with which conducting a sale or transacting animals through a facility will bring. There are several key priorities which can be attributable to meeting the outcome required, these include: design; construction; maintenance; size; on site facilities for selling, and transacting animals through the facility.

• Outcome Required: The Saleyard is designed, constructed and maintained to facilitate efficient flow and visibility of livestock for sale whilst providing for human safety and animal welfare.

• General requirements: A saleyard should be constructed and maintained so as to maximise operator safety and minimise stress and injury to livestock. This includes design and construction to appropriate standards, such that there are no projections, slippery surfaces etc that may lead to bruising or injury of livestock and stock handlers, or other parties undertaking activities at the facility.

The saleyard or lairage should be designed to enable a smooth flow of livestock through the facility with minimal risk or stress for animals.

Curved raceways, races and pressure areas with solid sheet designs are recommended in high livestock movement or throughput areas.

All identified livestock "movement and sale areas" should be constructed to provide a non-slip surface. Consideration should be given to providing soft standing "holding areas" for livestock to minimise stress and fatigue, including under cover facilities.

Livestock selling areas should be of a size sufficient to allow movement of the required number of livestock to be sold in those yards in a timely manner.

The yards should be constructed so as to allow the drainage, collection and disposal of waste to comply with State regulations, minimising risk to the surrounding area.

The saleyards should be constructed so as to minimise dust, mud and faecal contamination of livestock.

A process should be in place and used when necessary for reducing dust where soil or soft stand materials arc used.

There must be safe access for the public and livestock buyers to clearly view livestock offered for sale.

In accordance with WH&S requirements in areas which experience extreme weather conditions, consideration should be given towards the protection of livestock, buyers, sellers, agents, and staff.

Feed and water

Livestock holding pens and yards should be equipped with watering troughs of suitable size, and design, are easily accessible to the livestock and minimise the potential for injury and fouling of the water. Cattle should also have access to water of suitable quality for drinking within the selling pens at all times.

Livestock should be monitored to ensure that they are drinking and if not drinking (depending on seasonal temperature / conditions) action should be taken to investigate and if possible, rectify the cause(s).

Where livestock are to be held at the facility for more than 24 hours, feeding facilities, such as hay racks, self- feeders or feed troughs should be provided in the yards for livestock to be fed. The facility may also utilize agistment paddock(s) that contain suitable feed for the class of livestock requiring feeding.


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Shelter

Where applicable provision of shade and or shelter for animals in hot climates and protection from wind and rain in cold climates is recommended. As far as practicable livestock should be protected from the extremes of weather that can cause heat or cold stress. Shade, shelter, feed provision and other activities to protect livestock should be part of the overall livestock management plan.

Vehicular areas

Standing areas for rear wheels and axle groups at loading ramps should be level, paved or sealed. Where possible other areas should be managed to minimise dust. It is recommended excess animal waste should be removed from vehicles and loading areas prior to each sale.

Parking facilities for patrons separate from livestock vehicles is to be provided for both safety and convenience. Vehicular access and movement is to be in accordance with saleyard Work Health and Safety requirements, with surface maintained to ensure minimal potholes, corrugations, or bogging. Signage is required to ensure that all parties entering the site, are aware of where vehicles are to be parked.

Provision will be made for emergency vehicles (e.g. ambulance) to park with reasonable access to all areas.

A suitable parking area for Stock Agents and buyers is to be available and signposted as such.

Loading and unloading areas

Loading and unloading facilities must be designed to provide a safe workplace and environment, with provision for easy access and smooth traffic flow as stipulated within the Saleyard Work Health and Safety Manual.

At Saleyards where livestock are received and dispatched between sunset and sunrise, lighting capable of illuminating pens, unloading and loading areas effectively should be provided. Lights should be positioned to create even illumination that will encourage safe animal movement and not create shadows that may cause livestock to baulk or that may disturb neighbouring properties and normal neighbour activities. Refer to Standard on lighting in saleyards.

Public and auctioneers walkways

Handler Facilities - where applicable such structures should be constructed in accordance to Australian Standard AS I 657 - 1992 "Fixed platforms, walkways, stairways and ladders - design, construction and installation"; and consideration given to the Work Health & Safety Regulation, 2011, when examining and assessing walkways and guard-rails, stairs, landings, hand-railing and fixed ladders. Additionally, positioning of a safety rail should be considered.

Existing, older saleyards should have a maintenance plan in place seeking to comply with current industry standards and that is compliant with WH&S 201 l Regulation.

There should be access to auctioneers walkways from stock lanes and these access points shall have signage to prevent unauthorized entry. Where ever possible all walkways should be kept separate from livestock and managed in consideration of work Health and Safety regulations and recommendations for a safe working environment.

Auctioneers' walkways less than 1300mm in height may not require guard rails providing walkways have a minimum width of 450mm, a non-slip surface is provided and a risk assessment bas been undertaken.

Ramps

Ramps are to comply with the Australian Standard ASl657 - 1992 "Fixed platforms, walkways, stairways and ladders - design, construction and installation", and the Work Health & Safety (Floors, Passageways and Stairs) Regulation, 2011. Ramps should have an engineer's design certification statement before installation.

The slope varies with animal species and generally should not exceed approximately 20 degrees for permanently installed ramps. (Victoria require 12 degrees maximum on all cattle ramps).


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Portable or adjustable ramps should have a slope of not more than approximately 20 degrees for cattle and 30 degrees for sheep and are to be equipped with failsafe anchoring devices.

Flaps and tiller boards should be used to cover any gap between the loading ramp and the floor of the stock crate.

Loading and unloading ramps should be constructed from non-slip materials with level paved areas for the truck rear wheels. Side loading / unloading to be on level ground. The ramp walls should be blanked in (smooth, internal cladding) to ensure animals are not baulked, distracted or disturbed by activities outside the ramp.

Entry and exit gates with a minimum width of 600mm should be installed at the top of ramps for personal access and walkways should be constructed on both sides of each ramp.

CATTLE SPECIFIC REQUIREMENTS

The following sections are included as reference and should be adopted by any future detailed design that is carried out.

Ramps

Recommendation: New cattle ramps should be constructed as follows:

• Gradients: To be constructed with a maximum slope of not more than 20 degrees, (no greater than 12 degrees in Victoria) whether the ramp is fixed or portable/adjustable; and a minimum 1.5m long, level landing platform should be constructed at the top of all ramps. Ideally this landing section should be made adjustable.

• Ramp Surfaces: The ramp surface should be constructed with preference for concrete steps with a recommended rise of l 00mm and a tread width of 450mm or cleats, 25mm by 25mm spaced 400mm apart on a concrete surface. (Queensland, ramps may be a continuous slope with deep grooves or floor cleats). All surfaces should be non-slip and easily cleaned.

• Ramp Race Dimensions: A width of 800mm is recommended as this is narrow enough to prevent cattle from turning around in the race and wide enough for comfortable movement; and the top rail height should be a minimum of 1650mm measured from the ramp surface with a preferred height of 1800mm.

• Ramp Safety: Where ramps are adjustable, appropriate safety locking devices should be installed with clear instruction on how they are to be used. Winches, which have friction clutches, are recommended. All winches should comply with AS 1418.2 l 997 Cranes (including hoists and winches) Part 2 Serial hoists and winches. All new constructions should where possible install powered (electric, air or hydraulic) winches.

• Ramp Race Construction (including draft races): At the bottom of each ramp there should be a 2000mm x 800mm section of race joining the forcing yard and the loading ramp. All race sides should be blanked in with smooth internal cladding. (In Victoria ramp sides must be fully sheeted)

• Ramp Docking Facilities (Rear loading): A self-aligning bumper should be installed to bridge the gap between the race ramp and the truck. The ramp should also have adjustable side panels that fit against the truck so as to prevent animals from attempting to escape by jumping out through any gap that may exist.

Selling pens

Selling pens are to be constructed to enable access and viewing of livestock by facility staff, buyers and agents.

Pens will provide adequate space for animals to access water and move in accordance with recommended stock densities for the welfare of livestock at saleyards, specific to the class of livestock penned.

Soft flooring is recommended in all selling pens.

Recommendation: New cattle selling pens should be approximately twice the width as depth (6x3m) and laneways should be 2.9m wide, thus gates swung into the laneway can only open to approximately 75 degrees providing protection for livestock handlers. It is further recommended that dividing fences between selling pens be gates to allow for larger lot size and also cleaning purposes.


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Holding pens, forcing yard and drafting races

Pens, races and selling rings should be graded not less than 1 to 50 to the drains.

Within the saleyards all protrusions must be removed to help minimise potential risk of injury to facility staff, agents, buyers, vendors, carriers, and the general public.

Soft flooring options are recommended where possible.

• Pen Dimensions: Space within pens should be such as to allow livestock to move freely around the pen, with easy access to water. Minimum gate opening widths should be 2400mm. Livestock to be penned to allow such movement as required for the class of stock penned. The top rail heights should be a minimum of 1650mm measured from the yard surface. (Recommendation: All new cattle facilities have a minimum top rail height of 1800mm).

• Handler Facilities: No particular handler facilities shall be required in the forcing yard area. It is recommended that all gates in forcing yards and loading ramps be 'slam shut' spring loaded type (no protrusions) with a suitable person access gate leading to the loading race catwalk for the stockperson.

Receival yards

Configuration and Dimensions - Existing facilities will be judged on their merits with animal welfare and work Health and Safety the primary consideration.

Receival Yard Surfaces may be soft standing or a hard surface. If soft standing the surface should be covered with an appropriate material (e.g. sawdust, wood chips, matting etc) suitable for the livestock facility and be maintained to minimize hazard from effluent contained in the material.

In hard surface areas where it is not practical to install a grooved surface, the following alternatives are recommended:

Cleats: recommended 50mm by 50mm, spaced 400mm apart and at a 90 degree angle to the direction of livestock movement with appropriate cross rows of cleats to this on the ramp and in races to help prevent slippage by animals;

If considered desirable cutting appropriate grooving in the existing concrete flooring maybe undertaken (i.e. concrete scouring or by a concrete cutter). It is essential that any grooving or scouring does not expose or cut steel reinforcing or jeopardise the floor integrity.

GENERAL

Truck wash areas

Clean trucks are essential for presentation of clean stock, but truck hygiene plays an important role in maintaining good biosecurity practice.

Outcome Required: Transport wash areas that enable effective cleaning of vehicles, prevent environmental contamination and eliminate any other animal welfare and biosecurity risks.

Recommendation: It is recommended that a saleyard conducting 25 or more sales per year should have an operational truck washing facility, or that there is access to an existing truck wash within an acceptable distance of the facility.

lt is recommended that the truck washing area, where provided, be:

a) Paved with concrete b) Large enough to accommodate at least one maximum sized semi-trailer (approx. 20 meters). Where

new truck washes are constructed, provision should be made to cater for B-doubles and/or road trains c) Graded to a drainage inlet large enough to accommodate wash water and solids (sediments) d) Except at the entrances, kerbed at the edges to a height of not less than 300mm e) Equipped to provide sufficient volume of water at adequate pressure to clean all trucks as required.


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A wastewater management disposal system should be in place to minimize risk to environment, and comply with local and State regulations.

Washing facilities should clearly display operating hours and adequate instructions for the use of the truck washing facilities.

Water recycling facilities be considered in the installation of new truck wash facilities.

Amenities

Amenities of suitable standard for all parties will assist with the ability of parties to undertake efficient business at the site.

Outcome Required:

Provide suitable facilities that meet the needs of patrons, vendors, agents, buyers, carriers and anyone else that conducts business at the saleyard.

An amenities building should be provided on a site that allows for adequate waste disposal, hygienic toilet and washing facilities for transport operators, the general public, staff. The facilities should include disabled facilities. The design of amenity facilities shall comply with the current Building Code of Australia and the Health Act as it appears in each state and territory.

Facilities to have lighting in all amenities so as to ensure safe night time use. This

lighting must comply with Work Health and Safety requirements within the saleyard

complex.

There should be:

a) Office accommodation adequate for the intended purpose b) a telephone, internet access, computer and fax facilities c) an emergency telephone (locations clearly identified) d) A separate material storage area for cleaning and maintenance equipment used at the saleyard.

Where a canteen is provided, it should comply with all local health regulations and be large enough to service the needs of those present on sale days.

OPERATIONAL REQUIREMENTS

Outcome Required: Saleyards are managed and operated in a way that is acceptable to the general public, stakeholders, and in a manner that safeguards human safety, food safety and animal welfare.

Recommendations: It is recommended that saleyard have a system in place such as a Saleyard Advisory Committee as part of the overall management strategy.

Saleyard Advisory Committee - The saleyard operator or their agent shall be responsible for the coordination of and continued functioning of a Saleyard Advisory Committee, or equivalent thereof. The committee should include (but is not restricted to) representation from buyers, agents, vendors, livestock carriers and council representatives, with the saleyard manager in attendance.

Work Health and Safety (WH&S)

Under the Work Health and Safety Act 2011 (WHS Act) persons conducting a business or undertaking (PCBU) have a primary duty to manage risks to health and safety by eliminating them as much as is reasonably practicable.

This responsibility extends to all parties at a facility, including: employers, the self-employed, principal contractors, those who manage or control a workplace, as well as designers, manufacturers, importers and suppliers of plant, substances or structures that arc used for work. And it applies to all types of work and all workplaces that are covered by the WHS Act.


67

See Comcare website for detailed information:

http://www.comcare.gov.au/preventing/managing_risks_in_the_workplace

Outcome Required:

To operate and manage the saleyard or lairage in a manner that eliminates, or minimises potential hazards, to all persons entering the site. The facility has a functioning and current site-specific Work Health and Safety (WHS) Manual in place that complies with Federal and State Regulations that relate to the WHS Act.

The Saleyard Operator is to ensure that the standards required under the relevant Commonwealth Work Health and Safety Act and Regulations (2011) are met in accordance with the Saleyard Manual and that a copy of this manual is to be available at the saleyard on request. Much information relating to State interpretations are available at State WH&S Regulating Organisation's websites also.

All persons entering a saleyard with the intention of conducting work related activities must be accredited and undergo a site-specific induction. A register of accredited persons within the saleyards is to be maintained and kept at the saleyards.

The WHS Regulation 2011 covers workplace hazardous substances and dangerous goods under a single framework for hazardous chemicals and introduces a new hazard classification and hazard communication system based on the United Nations' Globally Harmonised System of classification and labelling of chemicals.

A register containing a list of all hazardous substances used or produced in the saleyard is required to be kept at the saleyards. The register should contain Material Safety Data Sheets (MSDS) and the risk assessments undertaken. Hazardous substances may include, for example; branding fluids, petrol, diesel, cleaning chemicals, pesticides, herbicides and paint.

A lockable shed should be provided to house all hazardous materials, and all hazardous substances must be adequately labelled and a MSDS list available at the saleyard office, as well as the site storage area.

All chemicals should be stored and used in strict accordance with the manufacturer's specified instructions and all relevant legislation for each state and territory. Any materials brought into the saleyard including feed, fencing materials, soft standing material such as sawdust and soil should be of a known, accredited status being specified free of contamination. ln the case of feeds, a Commodity Vendor Declaration should be requested, so as to ensure that no feeds contain residues.

All care should be taken to ensure livestock do not have access to areas or materials that are potential sources of chemical contamination, such as pest baits and herbicide treated weeds.

First aid facilities should be provided at the saleyard and their access clearly signposted. A register of injuries and first aid treatment should be kept. There should be an emergency procedure that is documented and followed for serious injuries requiring more than first aid treatment. The emergency procedure should include key contact details for ambulance, hospital, doctor and the onsite first aid person(s).

All accidents and work-related illnesses are to be reported to the relevant State Safe Work Authority if as a result of the accident or illness at the workplace a person, whether an employee, subcontractor or visitor, cannot carry out their usual tasks for at least 7 days.

A risk assessment should be undertaken and documented for all plant and work procedures carried out in the saleyards.

All employees working outdoors should be protected from UV A and UVB rays in accordance with the Saleyards Work Health and Safety manual. This means employers should:

a) Provide and maintain equipment needed to protect outdoor workers from the sun. b) Provide any information, instruction, training and supervision needed.

All people entering the Saleyard for the purposes of the sale or to inspect animals should be made aware that the saleyards is a workplace area which bas restricted areas within the Saleyard. These restricted areas are to be signposted in accordance with the Saleyard Work Health and Safety Manual.

http://www.comcare.gov.au/preventing/managing_risks_in_the_workplace


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Procedures should be in place to help prevent employees contracting any disease or infection that may be transmitted from animals to humans. The Saleyard WH&S Manual should address the issue of zoonotic disease, and action to prevent transfer to staff.

All employees should be provided with the correct personal protective equipment for carrying out their tasks and trained in its use.

Powerlines

Powerlines pose a significant risk to those conducting business and working at saleyards, pat1icularly trucks, and machinery undertaking business at the facility.

Saleyards should be constructed with location of powerlines taken into account, and where possible, avoiding overhead powerlines in the vicinity of entry and exit, and anywhere where personnel are operating at an elevated level.

Where new facilities are being planned and constructed, consideration to underground power is recommended.

Lighting

Lighting is important in ensuring all parties present at the facility are able to go about their tasks in a safe manner, and accordingly, all facilities should be adequately lit for safety to animals and persons.

End of Extract.


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