THE owners of North Coast saleyards are taking a "don't panic but proceed with caution" approach to dramatically declining throughput, putting on hold improvement plans, but downplaying any talk of relinquishing ownership.
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Throughput at saleyards across the eastern States has been spiralling downward as the deteriorating season means large supplies are sent direct to processors.
The drop in the size of yardings since Christmas has been most acute in the north-east of the State, where many producers have had just enough feed to hang on to cattle in the hope of widespread rain and a market improvement.
For the region's prominent selling centres such as the Northern Rivers Livestock Exchange in Casino and Grafton Saleyards, the drop-off in numbers comes on the back of several years of reduced throughput and revenue for the local councils that run two operations.
It's sparked questions of ongoing viability.
Despite recommending on Tuesday the planned $8 million upgrade of the Casino saleyards be put on hold, Richmond Valley Council general manager John Walker said it was still a business the council wanted to stay in and the long-term plan was to make Casino the regional exchange.
The upgrade was relying on $3.5m in federal funding, promised by Labor prior to the election and canned by the Coalition afterward.
Combined with the current trading conditions at the saleyards, the absence of Commonwealth funds meant going ahead with the improvements would be impossible, Mr Walker said.
Throughput at Casino to the end of December was down 14.4 per cent in the grown cattle category and a massive 88.1pc in bobby calves compared with the same period of the financial year for 2012-13.
Prime sales last week saw 400 head sold compared with 1500 this time last year.
Mr Walker said projections indicated a shortfall of $225,000 in budgeted income for the year.
However, financial analysis of the performance of the saleyards throughout the past seven years meant the council was comfortable with the business as a long-term venture, he said.
He said money was still being spent, including $1m in the past month on improving loading areas.
Likewise, Clarence Valley Council has invested in upgrades including new metal fencing, new runs and state-of-the-art waste disposal at Grafton saleyards in the past two years, despite a downward trend in throughput since 2007-08.
The revenue loss to council from the 53,000 head throughput in 2010-11 to this year's forecast 34,500 head equates to $75,000.
Agents point out the Valley had three tough seasons of floods, then drought last year.
Councillor Jeremy Challacombe, who heads up the council's saleyard committee, said the closing of a meatworks in Grafton, an increase in direct selling and the live trade prohibitions also affected throughput figures.
"The loss of the NSW Department of Primary Industry beef research unit at Grafton and beef extension officers at regional centres has also had an impact on the industry," he said.
Shan Goodwin
Journalist for The Land on the North Coast.
Journalist for The Land on the North Coast.
