A FARMER-OWNED lamb and mutton co-operative is set to receive a $12 million boost to expand and upgrade is processing plant in Western Australia.
WA Meat Marketing Co-operative (WAMMCO) has been given the multi-million loan, through the State Government's Co-operative Companies Loan Scheme, to increase its lamb and sheep meat processing capacity at its Katanning facility.
The three-year loan will help bolster WAMMCO's $50 million dollar investment, which is designed to increase throughput and booking space. It is the second $12m loan the co-operative has received from the Government for its Katanning upgrades.
In addition to expanding the processing facility, the new loan will also be used for other improvements, including a new high-tech freezing unit and the construction of additional staff accommodation.
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The WA Government said the loan scheme provides tax benefits that reduce the capital costs by around 30 per cent to co-operatives owned by WA farmers and fishers.
WA agriculture minister, Jackie Jarvis, said investing in local sheep processing facilities "has never been more important to build capacity and assist industry to respond to the changing global landscape".
"The Cook Government is supporting our sheep producers to capitalise on international market opportunities by supporting WAMMCO to expand production," Jarvis said.
"The co-operative's Katanning plant is the largest employer in the Great Southern, with more than 300 staff.
"This increased processing capacity will provide a welcome boost to the local economy and state's sheep industry as a whole."
WAMMCO REMAINS POSITIVE ABOUT THE INDUSTRY'S FUTURE
WAMMCO said despite the broad anxiety caused by the impending end of live sheep exports, it is incredibly buoyant about the future of the WA sheep meat industry.
"The co-operative is in the enviable position of having more demand for its product than supply," it said
"Our 23 per cent ownership of ‘The Lamb Company – North America', gives us access to lucrative US and global supermarket chains, including COSTCO and Loblaws.
"The Lamb Company has food service centres in Los Angeles, New Jersey and Toronto, and a turnover in excess of $US1 billion per annum."
Along with its New South Wales lamb and mutton processor, Southern Meats, WAMMCO supplies over 55 countries worldwide and processes in excess of 2.2 million head per annum.
"Our members have enjoyed bonus payments in excess of $63m since 2013, as well as highly competitive market rates," WAMMCO said.
"If you're not already a WAMMCO member, we would love to have you along for the journey."
