Upgrades to the Mount Gambier Livestock Exchange are a step closer after an application for a federal grant progressed through to stage two.
In August, the District Council of Grant submitted an expression of interest to the Department of Infrastructure, Transport, Regional Development, Communication and the Arts, seeking funding for the 2030 Transformation project.
DC of Grant chief executive officer Darryl Whicker said the announcement was a positive outcome for Council.
"Advancement to the next stage of the Growing Regions Program is a significant milestone towards attracting federal funding to complement commitments by the state government and council," he said.
"While we take the time to celebrate this achievement, we acknowledge the work put into this project over a number of years."
Mount Gambier & District Saleyards strategy committee presiding member and councillor Barry Kuhl also said it was pleasing to be able to progress the Transformation Project.
"This is very welcome news and represents an excellent opportunity for the revitalisation of the saleyards, which has a long history of supporting agriculture in our region and throughout Australia," he said.
South Australian Primary Industries and Regional Development Minister Clare Scriven said the state government remained committed to the project and would deliver $2.7 million - subject to the council's successful application for Commonwealth funding.
"We know that this facility is important to our local industries, and a major upgrade would unlock economic benefits," she said.
"Transforming the site would boost market sales and provide a platform for producers to expand and grow."
This project remains reliant on appropriate funding at the federal, state and local levels of government.