Preparing for change: A new saleyard user demographic

CITY OF GREATER GEELONG & COLAC OTWAY SHIRE COUNCIL

Authors

Matt Dalgleish Andrew Whitelaw Robert Herrmann

© Copyright, Ag Concepts Advisory, June 2017

This work is copyright. Apart from any use as permitted under Copyright Act 1963, no part may be reproduced without written permission of Ag Concepts Advisory.

Disclaimer

Neither Ag Concepts nor any member or employee of Ag Concepts Advisory. takes responsibility in any way whatsoever to any person or organisation (other than that for which this report has been prepared) in respect of the information set out in this report, including any errors or omissions therein. In the course of our preparation of this report, projections have been prepared on the basis of assumptions and methodology which have been described in the report. It is possible that some of the assumptions underlying the projections may change. Nevertheless, the professional judgement of the members and employees of Ag Concepts Advisory. have been applied in making these assumptions, such that they constitute an understandable basis for estimates and projections. Beyond this, to the extent that the assumptions do not materialise, the estimates and projections of achievable results may vary.


Contents

ExecutiveSummary...... 2

Scope...... 2

Methodology...... 2

Keyrecommendations...... 3

Consultantoverview...... 4

Analysts...... 4

Overview...... 5

Current locationandinfrastructure...... 5

COSCattle Yards...... 6

Cattleyards recommendations...... 7

COGSheepYards...... 8

SheepYardsRecommendations...... 9

LoadingRamps...... 9

Sheepshed/roof...... 10

Pens...... 10

Value – addservices...... 11

Otherstock sales...... 11

Livestock Agentengagement...... 12

Longer term focus for Peri-Urban farmersellingcentre...... 13

Requirements to Service Small orPart-timeFarmers...... 14

Future Requirements for Providing LivestockTradingFacility...... 15

OptimalLivestock Facility...... 16

Furtherinvestigation...... 17

Case studies...... 18

Conclusion...... 19

Appendix 1.SaleyardCondition...... 20

Appendix 2.SiteLayout...... 22

Appendix 3.ConsultationsList...... 23

Executive Summary

Scope

The primary objectives of this report is to:

  • Research and report immediate activities/actionsto:
  • Assist COS Saleyards to maintain and increase throughput given emerging competition from other saleoptions
  • Understand the barriers to engagement by current City of Greater Geelong (COGG) Saleyards users to the use of Colac Otway Shire (COS) Saleyards should COGG saleyardsclose.
  • Identify actions that COS may implement to enhance the engagement of local livestockfarmers.
  • Identify longer range objectives for providing bespoke saleyard facilities taking account of peri-urban farming requirements as identified in the COGG Local Livestock Market Analysis report.

Methodology

  • Review current infra-structure at COS Saleyards and identify any improvements and upgradesnecessary
  • Identify specific alterations to accommodate small lotsales
  • Review loading ramps and access with a focus on small lotdeliveries
  • Research any perceived resistance by C of GG saleyard users to COS Saleyard and recommend strategy forengagement
  • Make recommendation regarding time & day of sale, meeting with representatives including:
  • Local agents
  • Buyers
  • Saleyardstaff
  • Identify any other initiatives that may enhance the COS Saleyard in attracting peri-urban farmers.
  • Expand on the “Optimal Livestock Facility” as identified in the C of GG Local Livestock Market Analysis. This will propose a timeframe and identify the process to design a bespoke saleyard for the peri-urbanfarmer.

Key recommendations

  • Minimal improvements are required to the cattle yards although ongoing maintenance will need constantreview
  • Sheep yards require upgrades principally in the area of loading ramps and natural lighting in the shed
  • The launch of some additional services targeted to the peri-urban farmer will provide a launch pad for promoting the COS sheepsale
  • Minimal investment is required in the shortterm
  • Other livestock sales should be included in the promotion of the re-vamped COGsaleyards
  • Engagement by the livestock agents is vital to future success of sheep & lamb sales volume at COS
  • Should the COGG Sheep sale cease, then COS should take up the Monday saledate
  • Any promotion of the COS Sheep sale initiative should only commence with the announcement of COGG sheep saleceasing
  • Care should be taken to ensure that any capital improvements or modifications reflects future demand
  • The bespoke peri-urban market outlined in this report should evolve rather than an immediate implementation

Consultant overview

AgConceptsAdvisory/Mecardo(ARuralcoBusiness)isanindependent,specialistagriculturalstrategy and marketing advisorybusiness.

Ag Concepts is recognised throughout the Australian rural sector for innovative thinking, thought leadership and the capacity to design “disruptive technology & thinking” that challenges the status quo.

Supply chain management and collaborative marketing advice and implementation are areas of experience gained over a long time of analysing and understanding markets and applying this knowledge to the farming and agribusiness sector.

ACU’s qualities and initiatives result in continued demand for their independent and valued opinion

in the Agricultural Sector.

Analysts

TheACAbusinesspridesitselfonbeingadiverseandcapablebusinesswhichhascarefullyselectedits employees to have complimentaryskillsets.

Robert Herrmann

Robert Herrmann is the Managing Director of Ag Concepts Advisory Pty Ltd (ACA).

The company was established by Robert Herrmann in Adelaide in 1996. Cert 4, Workplace Training and Assessment

-RG146Derivatives

-AFSL 316516 ResponsiblePerson

Matt Dalgleish

Prior to joining Ag Concepts, Matt began his career in 1993 with ANZ Bank as a technical analyst for foreign currency and interest rate markets. Matt progressed onto the currency trading desk, both in Australia and London.

In 2015, Matt combined his passion for agriculture with his extensive experience of economics and trading by joining the Ag Concepts team.

-BA Economics and Finance(RMIT)

-Diploma of Education(Monash)

Andrew Whitelaw

AndrewstartedhisagriculturalcareerintheUnitedKingdominthefeedandbiofuel industry, in a number of roles from quality management to logistics &trading.

The ACA business is an ideal fit for the Andrew’s skillset as it combines both his

knowledge of agricultural marketing and IT.

-BSc Business IT and eBusiness (WestScotland)

-MA Agribusiness(UQ)

Overview

The objective of this report by Ag Concepts Advisory/Mecardo (ACA) is to gather information relating to the immediate upgrades, alterations or amendments which could be considered to position and preparetheColacOtwayShire(COS)SaleyardintheeventoftheclosureoftheCityofGreaterGeelong (COGG)saleyards.

The report will also consider any improvements which may enhance the experience of future COS Saleyard users, with the aim of attracting new users. Focus will be given to the requirements of the peri-urban farmer’s needs around the purchasing and selling of livestock.

The G21 Board resolved that further work to understand the improvements required to the COS Saleyards to support users should the COGG Saleyards close and that a new model be considered for thelivestockselling/buyingrequirementsoftheG21region,withparticularreferencetotheneedsof the peri-urbanfarmer.

COS Saleyard complex is well positioned to provide an extended service to the G21 region farming community. While a regular weekly cattle sale is conducted (each Thursday), sheep sales are less regular and currently have little support.

Current location and infrastructure

Boththesheepyardsandthecattleyardswerebuiltin1979;havingrelocatedtoa6.5-hectaresiteon the Colac-Ballarat Road. This location provides ready access from all directions, being close to the PrincesHighwaygivingdoublelanehighwayaccesstoGeelongandtheBellarinePeninsular,aswellas to the dairy regions to the south and west of Colac. The location on the Colac-Ballarat Road also provides easy access from the north, connecting the grazing/dairy regions of Beeac, Cressy and Inverleigh.

This location also provides a natural buffer to Colac City, however as it is less than 9 kilometres from Colac City centre agents, council staff and other associated workers easily commute.

A three (3) bay truck wash is in place, as is a “selling ring” predominately used for dairy cow and stud

sales.

There are ample pens for the current throughput of cattle, with outside holding penscomplementing the undercover selling centre. The outside holding pens are adjacent to the sheep selling pens and could also be used for sheep should additional pens be required in thefuture.

The sheep yards are currently functional although there is little requirement with minimal sheep and calves offered on a fortnightly basis.

COS Cattle Yards

COS Saleyards are considered a modern facility, especially the cattle yards. The cattle yards are covered, collect rainwater for later use, and have solar panels for electricity generation. All sale pens have “soft” floors of wood chips for the improved welfare of the livestock.

While discussion around the sale day and whether cattle should be pre-weighed or post-weighed exists,ACAcouldfindnoevidencethatadifferentsaledayorpre-weighingwouldhaveanysignificant impact on the throughput and usage of the cattleyards.

In relation to the pre-post weigh discussion, it is noted that the Colac model of post – weighing cattle is the preferred method at the majority of Victorian saleyards and specifically the major selling centres.

The ACA view on preferred day of sale and weighing model was confirmed via interview with COS staff, and agents however without any further market related analysis or extensive research.

OH&SprocessesforthehandlingofcattlewhencomparedtootherVictoriansaleyardsareverygood. Ofnoteistheweighareawhereminimalcontactbetweenstaffandcattleoccurs.Theconditionofthe pens and gates are excellent, while the laneways and floor surfaces are generally good reducing the risk of injury to both staff andstock.

Overall, the scale, condition and location of the cattle yards positions the COS Saleyard as fit - for –

purpose to provide an adequate buying & selling cattle facility for the G 21 region into the future.

Overhead walkways provide safe and easy access for livestock buyers, sellers and the public to view sale cattle and to interact with the sale process.

Cattle yards recommendations

  • Consideration should be given to further improvements in the interaction between sale day staff and cattle during the movement of cattle in the lane-ways, specifically the delivery of cattle from the sale pens to the weighbridge. The use of staff to move cattle results in close contact between cattle and staff, and is identified as an area ofrisk.
  • There are 6 pens in the outside store cattle area that have concrete flooring only; this should be covered with either matting or wood chips to reduce risk ofslippage.
  • On-goingmaintenanceinsaleyardsisessential,andtheareaswhererubbermattinghasbeenlaid is needing constant repair and maintenance. Of special note are the screws used to secure the matting to the existing concrete floor. The protruding screws when the matting is damaged or moved are a hazard for stock and staff and requireconstant removal as the matting gives way.
  • A continued move towards more pens with wood chips is favoured; this should include pens not under the roof especially during the spring/summer peak sellingperiod.

COS Sheep Yards

While the sheep yards are sound, and of steel construction, lack of use has rendered some aspects either dangerous, or non-functional and in need of repair.

Specifically, the loading ramps are in need of attention to:

  • Make them functional and fit forpurpose,
  • Meet required OH&Sregulations
  • Improve the overall ambience of the sheepyards

The sheep drafting area is functional, however minor work such as replacing damaged timber with steal panels would bring them up to modern standards.

Eight of the sheep pens have rubber matting floors, while 10 pens have higher rails making them suitable for alpaca and goat sales.

Six of the pens have swinging gates designed to allow the pens to be “halved” for small owner lots.

A total of 249 selling pens are in the complex, with 84 under cover.

80 pens are small in size, generally 1.3 wide by 3.0 metres deep, with an average area of 3.9 square metres per pen, while the balance of the pens are 2.6 wide by 3.0 metres deep, with an average area of 6.9 square metres.

It is estimated that these pens and the related drafting and holding yards could comfortably receive, sell and deliver 1,800 sheep on a sale day.

Thelargepercentageofsmallerpenspositiontheyardsasidealtocaterforsheepandlambsfromthe peri-urban farmer who generally offer a large number of small lots. These pens also are ideal for individual calf, goat and alpacasales.

The shed covering the sheep yards has some “laserlite” cladding on the roof and walls, however over

time the cladding has dulled and no longer allows sufficient light to enter.

Of the six (6) runs of pens, only three (3) have over-pen walkways for sale day auctioneers to sell from.

Sheep Yards Recommendations

In this report, any activity or upgrade has been considered in the context of the likelihood it will increase the appeal of the COS Saleyards as the preferred selling/buying centre for the G21 region, especially with peri-urban farmers in mind.

This principle should be applied to any decision regarding expenditure or the implementation of any future upgrades.

Loading Ramps

There are currently three (3) ramps at the sheep yards designed for multi-level truck access. All are in need of upgrade and/or repair.

Ramp #1 (closest to the cattle yards.)

Anelectricwinchshouldbeattachedtothisramptofacilitatesafeusebytrucksloadingandunloading sheep, however this ramp area should be preserved for a B Double truck capacity cattle ramp and connecting laneway to be installed in the future. There is an existing need for a BW ramp for existing cattlesales,howeverthelocationwouldalsoprovideBWaccessforfuturesheeploadingrequirements.

Ramp #2 & #3

These ramps should be repaired with an electric winch to facilitate access to multi-level truck heights. The replacement of timber flooring with a light weight steal or similar is also needed.

All ramps should be carefully checked for ease of use and safety; to provide a good selling/buying experience saleyard users expect that the loading/unloading area is first class.

Allrampsshouldhavereplacementbufferboards(timberinplacetoreducepossibilityofdamagefrom or to reversing trucks). On all ramps, the existing timber is rotted or damaged. Not only will this upgrade improve the functionality of the ramps, it will also improve the look of the receival area and demonstrate an operational selling facility. While this is a relatively minor task, the impact will be positive for saleyardusers.

Trailer ramps

In general, these are functional, however a replacement of all buffer boards is required. New ramp

A“drive-over”trailerrampshouldbeinstalled.Thiswillprovideaneasierunloadingexperienceforcar and trailer deliveries of small stock, especially where the customer is in-experienced at reversing a trailer, or where stock is transported via a horse float. Discussion with COGG regarding the existing “drive-over” trailer ramp should be had to negotiate either the construction of a new ramp for COS Saleyard or the purchase of the existing COGGramp.

The location of this ramp should be in an easily accessed location, with no impediment to customers accessreducingthechanceofaccident.Itshouldalsobelocatedincloseproximityandwithconnected access to the sheep receival yards. It is recommended that the COS Saleyard manager advises on the most suitable location taking account of existing and future infrastructureplans.

Sheep shed/roof

All existing laserlite should be replaced, and council engineers engaged to advise on appropriate additional laserlite to roof and walls. The objective should be to create a bright shed area to enhance the inspection of stock for sale, and to provide a generally improved sale experience.

Itisnotsuggestedthatadditionalroofspacebebuiltovertheout-sidesheepyardsatthistime;future constructionshouldrespondtoincreasedordifferentsalesandanybuildingtoreflecttheneed.

Pens

The current pens are in generally good condition and adequate for the initial effort to engage sellers and begin the COS Saleyard sheep sale rebuild.

Future development and improvement should be dependent on throughput, with additional pens on thenorthsideofthesheeppenseasilyreplacedonexistingconcreteflooringshouldfutureuserequire an increase incapacity.

An additional number of pens should have rubber matting floors; it is suggested that all of the pens 1 to 40 be fitted with rubber matting. This will provide a soft floor for the majority of calves and sheep offered with additional pens covered as supply grows.

Value – add services

It is recommended that COS facilitate the provision on sale day of a shearer/crutcher for the use of sale customers. The service would be valuable to peri-urban farmers purchasing sheep who can have the sheep shorn before delivery, and also for sellers who need to clean-up or crutch sheep to meet sale presentation requirements.

While eventually this would need to operate on commercial terms, in the initial stages COS should consider the following initiatives to kick-start this service.

  • Identify a suitable serviceprovider.
  • Provide suitable facilities such as a shearing platform (use existing shedfacilities)
  • Subsidise the service provider in the initial stages to support the establishment ofthe service
  • Promote and advertise theservice.

The selected service provider would supply a shearing machine, wool table and bins as well as wool packs bags. They would also provide a wool buying service if required, or pack the wool for take away by the sheep owner.

This specialist service will require support and promotion from COS especially in the start-up phase, but it can form an important marketing & promotion tool to encourage first time users of COS Saleyards. A full promotional campaign including press release to local and rural news and publications will not only inform regional farmers of the service provided, but it can be promoted as an exciting new initiative that is aiming to support the local farmers with specific focus to the requirements of the peri-urban farmer.

Other stock sales

With the diverse farm practices (especially of the peri-urban farmer) the COS Saleyard should promote sales of a wide range of livestock. These could include goats, alpacas, pigs and poultry. The existing sheep and calf pens are capable of receiving and selling a wide range and variety of livestock and this should be encouraged. It should not be expected that this will have an immediate effect, but over time the COS Saleyard can develop a reputation as the sale yard for any and all livestock in the G21 region.