THE Strathalbyn abattoir is set to be revamped and re-opened later this year under a co-operative model allowing buy in from local farmers, butchers, retailers, and wholesalers.
Community investors will be invited to buy into the new enterprise at a minimum stake of $5000, with the goal to connect farmers directly with butchers, wholesalers and supermarkets and provide selling points like traceability, provenance and paddock-to-plate product.
Following the Strathalbyn abattoir's closure in December, PKF Accelerate undertook a business case, commissioned by Regional Development Australia Adelaide Hills, Fleurieu and Kangaroo Island, looking at both a private equity model and a co-operative model to re-open the facility.
PKF Accelerate managing director Grant Baker said survey responses from Fleurieu food producers and suppliers quickly showed the desire for a co-operative model.
"We quickly came to realise that if we were to build something sustainable it needed to be part of the community of the Fleurieu," he said.
"Hence the reason we chose to go with the co-operative model where the actual community has skin in the game in the entire process.
RELATED READING: Strathalbyn abattoir closed
"Rather than just getting an abattoir up and running it was important to look at other issues that we see everywhere with farmers on the Fleurieu - things like access to private kill and paddock to plate which we think is going to be the single most important issue we're going to see over the next 12 months.
"Creating a co-operative will link the supply and demand sides of the meat industry and serve farmers, restaurants, butchers, retailers, wholesalers and even private consumers.
"As part of this, we are delivering a full abattoir management system that links in haulage, boning room services, where everything that's needed from farmer to restraunter or wholesaler is managed completely by the abattoir."
About $1.2 million will be required to upgrade the current facility and establish a sound trading model, with Mr Baker hopeful the majority will be raised through $5000 to $10,000 investments.
The viability of the new venture was based upon the Strathalbyn abattoir's 2020 processing figures, the lowest in the previous five years.
While larger scale investors are willing to back the new project, Mr Baker was confident the local community would buy into the co-operative model.
No single investor would be allowed to own more than a 20pc stake in the venture and all stakeholders would have an equal vote when it came to company decisions.
"We didn't want to go in with big numbers that would create an environment where smaller producers couldn't be part of this," Mr Baker said.
"We think with the low entry point, the viability for anybody to come in is substantial."
The project has already had investment interest - without knowing monetary outlay - from up to 100 farmers, as well as butchers, local supermarkets and restaurant groups.
A founding caretaker board, including Skara Smallgoods' Anthony Skara and Waitpinga sheep producer David Parsons, will be finalised on Friday, with a new board to be elected in September by community investors.
PKF will hold community information sessions from Monday at Yankalilla, Strathalbyn, Balhannah, Adelaide and Kingscote where they will provide detail on investor and co-op member opportunities.
PKF are also actively recruiting a general manager and project manager, with development works on the abattoir expected to start in late September in the hopes of having it in operation by late November.
"We need people to attend the sessions, come in force, hear what we have to say, sign up and commit," Mr Baker said.
"Either way, we have built a model to ensure the Strathalbyn abattoir will re-open.
"We really want this to be owned by the community."
Information sessions about the venture will be held by PKF Accelerate at the Yankalilla Football Club on Monday, August 30 from 5-7pm; Tuesday, August 31 at the Strathalbyn Football Club from 5-7pm; Wednesday, September 1 at Balhannah - Onka's Football Club from 5-7pm; Thursday, September 2 at PKF Advisory, Adelaide from 5-7pm; and Monday, September 6 at the Ozone Hotel, Kingscote from 5-7pm.
Waitpinga grazier sees value in co-operative model
A STRATHALBYN abattoir, operating under a co-operative model, would provide a means of value-adding for Fleurieu livestock producers, according to Waitpinga sheep producer David Parsons.
Mr Parsons is one of five members of the foundation board, being finalised on Friday.
"Everyone in the industry recognises the Fleurieu has first-class produce and needs to be considered in a sustainable way and that's what underpins our interest in the abattoir," he said.
"We also need choice. Large meat processors are good and we need them for export markets and so on, but in the Fleurieu there lies the opportunity to have a localised, specialised product that can really value-add to our enterprises."
Mr Parsons said the closure of the Strathalbyn abattoir had "left a hole" for many Fleurieu and KI farmers and a new facility would mean less transport and provide marketing opportunities for farmers.
"That buy-in gives you a stake in the process and having that stake means more of the process is within your control," he said.
The Regional Development Authority Adelaide Hills, Fleurieu and Kangaroo Island quickly recognised the importance of an abattoir in the region upon Strathalbyn's closure last December and have been integral in finding a solution for producers.
RELATED READING: Plan launched to re-open Strathalbyn abattoir
RDAAHFKI commissioned the business case and regional development manager Stephen Shotton is hopeful the co-operative will provide a service he says is integral to the region.
"While the new property owner didn't want to run the abattoir, he understood the importance of it, and we had this region-wide industry with a real interest in seeing it continue," he said.
"I've said all along that the cheapest, fastest and easiest way to have an abattoir in the region was to re-open at Strathalbyn."
Mr Shotton said the PKF Accelerate team had experience in establishing co-operatives before and a working abattoir on the Fleurieu would provide big benefits to Fleurieu and KI livestock producers.
"Livestock producers might be settling into a new way of where they get animals processed since Strathalbyn's abattoir shut, but talking to them the logistics are more difficult because they're travelling further, they need more numbers to make up a load, transport is costing more and it's harder to go inspect what's happening with their animals during the abattoir process," he said.
"We also have examples of producers who have had to give up on their value-added paddock-to-plate brands because they cannot maintain the quality standards and logistical requirements that are needed."
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