WESTERN Australia meat processor WAMMCO has had a $5 million state government loan approved to upgrade its Katanning facility.

The McGowan Government said the $5 million loan to the WA Meat Marketing Co-operative under the Co-operative Companies Loan Scheme would enable the farmer-owned company to increase its processing potential and efficiency through upgrades to the mutton boning room.

Other upgrades include improvements to the plant’s conveyor, compressor and computer systems.

The Katanning plant is the largest employer in the region, with more than 300 staff when operating at full capacity.

More than $102 million in loans have been provided to Western Australian co-operatives for capital purchases since the scheme began in 2005.

Agriculture and Food Minister Alannah MacTiernan said sheep meat is fetching record prices in the market and her government is supporting farmers to capitalise on this market opportunity.

“Investing in sheep processing facilities provides farmers with more options for turn off, and helps our State to meet the growing global demand for premium WA lamb and mutton.

“WAMMCO is the only major producer-owned co-operative of lamb and sheep meat products in Australia and continue to deliver fantastic results for farmer members,” she said.

“These upgrades will provide a welcome boost to Katanning’s economy and farming community.”