A $12 MILLION loan to Western Australia’s farmer-owned sheep meat processor WAMMCO will support timely processing of livestock at its Katanning plant, according to chief executive officer Coll MacRury.

The WA Meat Marketing Co-operative has organised the loan through the Cook Government’s Co-operative Companies Loan Scheme to expand the facility’s processing capacity.

Mr MacRury said the investment will probably increase the plant’s processing capacity by 500,000 head a year to help cover the co-op’s producer shareholders’ needs.

He expected some extra processing capacity would become available at Katanning in October or November this year. WAMMCO will be pushing more product to customers in its top markets of North America, the Middle East, the United Kingdom and Asia, Mr MacRury said.

Pastoralists and Graziers Association livestock committee chair Chris Patmore said WA sheep producers have had trouble getting abattoir space in recent years.

“Anything that is going to improve that in the light of the lack of live export has got to be a good thing.”

Mr Patmore said Bunbury processor V&V Walsh has also increased its processing capacity and he hoped this and WAMMCO’s development could make up for recent abattoir closures at Esperance, Kellerberrin and Gin Gin.

“There has been a lot of sheep go out of the industry, but there are more crossbred sheep that need to be slaughter than ever before.

“When the flock was mostly Merinos, the ewe lambs were kept on farm as replacements and the wethers went to live export and we had a small crossbred lamb component,” Mr Patmore said.

“But nowadays there is a lot bigger crossbred lamb component that will need to be slaughtered.”

WAAMCO’s three-year loan will fund capital works to expand the processing facility, including a new high-tech freezing unit and the construction of additional staff accommodation.

The new loan is in addition to a previous $12 million loan provided in 2024 for Stage 1 of the Katanning upgrades for a new chain and container park.

WAMMCO’s Katanning plant is currently the only major producer-owned co-operative meat processing and marketing company in Australia, with more than 700 farmer members across WA’s agricultural regions.

Agriculture and Food 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.

“The Co-operative’s Katanning plant is the largest employer in the Great Southern, with more than 300 staff,” she said.

“This increased processing capacity will provide a welcome boost to the local economy and state’s sheep industry as a whole.”

The Cook Government said more than $151 million in loans have been provided to Western Australian co-operatives for capital purchases since the Co-operative Companies Loan Scheme began in 2005.

The scheme provides tax benefits that reduce the capital costs by around 30 per cent to co-operatives owned by WA farmers and fishers.