The Naracoorte-based Teys Australia announcement earlier this week has already injected confidence into the regional beef sector, which underpins 1700 cattle producers across the Limestone Coast.
Figures show red meat production – including beef, sheep and meat processing – is the second largest sector contributor to the Limestone Coast’s gross regional product.
The announcement is considered crucial given the Naracoorte abattoir will need to source additional livestock to feed its all-year-round operation.
Industry insiders also believe the benefits will flow to regional livestock carriers.
Already, the Teys Naracoorte plant is estimated to underpin more than $370m in gross state product.
Veteran livestock agent Dale Keatley is among the regional livestock industry identities who have welcomed the announcement.
“The expansion will give the region more killing capability and it shows the company is committed to the region – it will be good for the whole industry,” Mr Keatley said.
“It is a very positive announcement.”
Raymond Scott Livestock Transport spokesperson Ashley Scott said the flow-on benefits from the expansion should be “significant” for regional livestock carriers.
“It should mean more transport movements into the Naracoorte facility and a lot more opportunities,” Mr Scott said.
“It should keep the wheels turning around the region.”
Glenburnie Saleyards business manager Peter Mitchell also welcomed the announcement, arguing the investment should help to further stimulate the regional cattle sector.
He said Teys was already one of the regular major buyers at the livestock exchange of both cattle and sheep.
“Like any industry, if you have some capital investments and improvements it has to be good spin-offs for the rest of the players in the industry,” Mr Mitchell told The Border Watch.
“This is potentially a good move for producers.”
He said the Naracoorte announcement was particularly timely given the impact of the Thomas Foods abattoir fire at Murray Bridge.
“This has had an impact because they are not buying as much cattle, in fact they are buying very little in southern areas,” Mr Mitchell said.
But he said the Glenburnie livestock selling centre was continuing to attract a competitive number of buyers from both South Australia and interstate.
“The Teys investment will not only create employment opportunities, but will give some relief to everybody the industry is heading in the right direction and that it is a good industry to be in,” Mr Mitchell said.
While stock numbers were down this week at the Glenburnie exchange, he suggested some producers could be hanging on to stock until the sell-off in northern Australia had eased.
“Huge numbers of cattle in northern Australia had been sent to slaughter because of drought conditions, which should result in a national herd decrease,” Mr Mitchell said.
Teys Australia is the nation’s second largest beef processor and will inject more than $30m into new infrastructure at its Naracoorte plant and offer around 100 new jobs.
Later this month the company will officially launch a new high-quality South Australian beef product, which will be marketed worldwide and require the plant to operate year-round to keep up demand.
Independent economic modelling shows Teys already supports more than 2225 South Australian full-time jobs directly and indirectly, including 500 at the plant.
The business is ready to start employing new staff immediately.
The company believes it will not fill all of the vacancies locally and is looking to surrounding centres.
