The economic impact of the Warrnambool saleyards is now only one third of what it was little more than a decade ago, according to a study commissioned by the city council.
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A confidential report obtained by The Standard, completed by the AEC Group, found the saleyards now contributed $10.4 million in business revenue - down from $34.1 million in 2008.
That's 0.22 per cent of Warrnambool's gross regional product.
The study found the main contributor to the activity was agent commissions, comprising 68.6 per cent of the impact.
The saleyards have been in decline since the mid 1990s according to the study, recording a cattle throughput of 61,582 head in 2021-22, representing 27.9 per cent of the peak of 220,572 recorded in 1995-96.
Warrnambool council commissioned the report in light of a potential spend of up to $5.66 million to upgrade the yards.
The debate started after the October 2020 collapse of a concrete public walkway, prompting an engineer's review which found almost no part of the yards met current standards.
The future of Warrnambool's saleyards came under the spotlight in early August after city councillors voted 4-3 against awarding a tender to spend up to $5.66 million on upgrades.
Cr Ben Blain's motion was passed which included a plan to begin stakeholder and community engagement based on the implications of not committing to the upgrade works.
The process included the AEC Group report and an independent economic study prior to what is expected to be a final vote of councillors next Monday, November 7.
"The economic activity supported by the saleyards in 2021-22 represents 30.6 per cent of activity supported by the saleyards in 2007-08," the study found, adding the 56 full-time equivalent jobs supported by the saleyards represented 0.31 per cent of total jobs in the Warrnambool council area.
In addition to the agent's commission generating the most business activity, other business was generated by operating activity (15.6 per cent), visitor expenditure, (9.5 per cent) and capital works (6.2 per cent).
The study also found other businesses would be impacted by a closure, especially those near the saleyards, but also all businesses located within the broader Warrnambool economy.
"If the saleyards was to close, the community would lose a number of benefits which the saleyards generates, including community pride, mental health, social and networking needs, satisfaction from employment, provision of a market for calves, competition for livestock, localised travel, agricultural knowledge among youth and access to infrastructure/services," the study found.
However, the report said the community could receive some positive implications, such as using the land for higher value adding activity, increasing animal welfare (as the animal will be sold from a facility which holds best practise standards), more efficient allocation of public funds and fewer trucks being present on local roads.
