NEGOTIATIONS are continuing with two parties for the sale of the Gunnee Feedlot near Delungra, where locals are hopeful the new buyer will re-open the facility.

Owners Mort and Co put the 10,000 head feedlot, on the 3600 hectare Gunnee Station 8km north of Delungra and 45km west of Inverell, up for sale last year. The group is selling the station in order to develop it’s Grassdale Station feedlot near Dalby, Qld, to feed 30,000 head, with a licence for a further 18,000.

According to a report in the Australian Financial Review, the group has been seeking $18million for the property, which it bought for $11m from Twynam Patoral Co in 2004.

Mort and Co managing director Charlie Mort said the feedlot had been wound down since last October, with the last cattle leaving about two months ago.

“The main reason we had to close is that feedlotting is a tough game at the moment with grain prices and the dollar, and we decided it would be better to concentrate on markets up here,” Mr Mort said.

He confirmed that of 15 staff only the full time station manager was still employed, with contract farmers harvesting the last half of the sorghum crop.

“Negotiations are on-going with a couple of parties, but both are committed to the feedlot,” Mr Mort said.

Delungra locals have expressed concern at the impact on their community of the closure of the feedlot.

“We’re a little town so to lose that many jobs is a big thing. I know grain prices have been high and the dollar isn’t helping, it’s not just the sale (of the property) that has caused the closure. It will also affect my business and other local businesses because we will reluctantly have to put some staff off,” Delungra Hotel publican Baz McKelligott said.

Mr McKelligott estimated his business turnover had dropped around $2000 a week since the feedlot closed.

“That’s not just the locals who live here, but there’s the truck drivers carting grain or stock who stay the night and have a feed here, or fill up with fuel next door. It’s also no good when families lose jobs, I know of two that have had to move temporarily elsewhere for work.

“We’re just hoping whoever buys it makes a go of it again,” he said.

© 2008 Inverell Times

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