SOUTH West cattle producers have raised their concerns over the process adopted to evaluate the expressions of interest submitted for the replacement of the Boyanup saleyards.
Last week Agriculture and Food Minister Alannah MacTiernan said the process for a South West saleyard solution was complete and that two respondents had been asked to provide detailed proposals for the replacement of the Boyanup saleyards, which is expected to close in 2022, as well as the possible lease of the Muchea Livestock Centre.
WAFarmers said it supported the Southern Dirt Expression of Interest (EoI) as it was based on establishing a co-operative model to be known as ‘The Southern Livestock Producers Co-operative’.
WAFarmers livestock president David Slade said the goal of Southern Dirt’s EoI was to build a modern, competitive livestock selling centre in the South West that was owned by the community and the industry.
“This is an effective model which is used by the Katanning and Mt Barker saleyards and we were hoping the same model could have been adopted for the new South West Saleyards and Muchea, given the potential impact that a monopoly situation could have for livestock producers,” Mr Slade said.
“We do not support the ownership of two major saleyards being in the hands of one private company.
“WAFarmers believes a co-operative model will benefit South West livestock producers because a farmer-led co-operative has the interest of livestock producer’s front and centre and will keep saleyard fees cost effective to all participants.”
Mr Slade said there were also “significant concerns with the transparency of the EoI process and the lack of representation on the evaluation panel by livestock producers or State Farming Organisations”.
“WAFarmers would like clarification on what selection criteria was used which resulted in the Southern Dirt EoI being rejected to proceed to the detailed stage of the process,” he said.
Mr Slade was hopeful that if the two applicants that have been asked to give detailed proposals did not meet the selection criteria, others would be considered.
“WAFarmers has had an interest and played an active role in discussions about the South West Saleyard development for nearly a decade and will continue to be vocal in this space for the betterment of the South West livestock industry,” he said.
“WAFarmers would strongly encourage Minister MacTiernan to appoint livestock producer representation to the evaluation panel to balance the interest of all concerned.”
Ms MacTiernan said there was nothing stopping the formation of a co-operative to build saleyards in the South West – “if that is the preferred model, the State government is happy to vacate the space”.
“However, the group’s expression of interest relied on very large amounts of taxpayer funding, which is not appropriate when a market solution exists and did not meet the selection criteria,” Ms MacTiernan said.
“In terms of saleyard fees, regulatory measures can be used to ensure fairness for all participants.”
Ms MacTiernan said the progress made on the EoI process marked an important step forward in the government’s election commitment.
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“It is encouraging to see the private sector interest in providing a saleyard solution in the South West,” she said.
“This request for proposals will ensure we meet the needs of South West livestock producers while delivering the best outcome for taxpayers.”
In addition to setting out their financial capacity and operational experience, the two respondents will be required to demonstrate they have a structure that encourages innovation and can respond to changes in the industry.
Respondents will also be required to demonstrate they have a credible pricing structure with independent oversight.
A panel will be appointed to examine the proposals, including representatives from the Department of Treasury, Department of Finance, Department of Primary Industries and Regional Development, the Western Australian Meat Industry Authority and State Solicitor’s Office.
Respondents will be required to submit their proposals by May 2019 with the aim of finalising a contract with the successful respondent by October 2019.
