State funding for sheep meat processor

WAMMCO chief executive Coll MacRury said the money, from the co-operative loans scheme, would allow it to reconfigure the lamb boning room, upgrade the mutton room, invest in a new vacuum-packing machine and install a water recycling plant.

He said WAMMCO had used the scheme “a number of times” in the past for capital projects and the new works would allow the process to be “more efficient”.

“The loan gives us the ability to process another couple of thousand lambs per week and value add a lot more of our lambs,” he said.

“We can also send 20-30 per cent more of our lamb chilled which we would have struggled to do in the past.”

WAMMCO processes lamb for Aldi as well as supplying lamb to wholesale giant Costco through its Goulburn plant in New South Wales.

Last year the co-operative was ranked 28 in the 2016 National Mutual Economy Report, which was commissioned by the Business Council of Co-operatives and Mutuals, putting its annual turnover at $287m and total assets at $84m.

Agriculture and Food Minister Alannah MacTiernan said the upgrades would allow for increased production levels to remain competitive in an ever-changing world market and to meet the increased demand for high-value chilled cuts.

“WAMMCO’s Katanning plant is the biggest employer in the region and employs more than 300 people when operating at full capacity on a single shift,” she said.

“With the capacity to increase processing of sheep by 2000 head per week, these upgrades will secure valuable jobs in the region, generate more profit and increase returns to WAMMCO’s producer members.”

More than $80m in loans have been provided to support WA co-operatives to purchase or upgrade assets since the scheme was set up in 2004.

Past beneficiaries of the scheme include the Geraldton Fishermen’s Co-operative and Sweeter Banana Co-operative.