MEAT prices in Tasmania could rise if the Killafaddy saleyards in Launceston ceased, according to a consultancy report prepared for the Launceston City Council.
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The possible sale by Launceston City Council of the 86-year- old Killafaddy saleyard has unknown consequences on small income farmers.
The council joins a number of interstate councils looking to sell off saleyards found in increasing urban municipalities, in its case, it wishes to prevent a $124,000 yearly loss to ratepayers.
A 2012 consultancy review of Killafaddy, prepared for the Launceston City Council, which did not consult any of the 40-70 farmers who use the yards, said the position and importance of the saleyard could not be underestimated.
It found, through its interviewees, that meat prices may rise as a result of closure, and loss could affect Tasmania's competitive position as a premium producer.
On the other side, it found that urban centres should not house livestock saleyards or trucks driving through the city.
Elders stock manager Colin Cook said the closure of Killafaddy would affect the whole livestock industry.
He said alternative yard options were limited, with the Elders Powranna yard only suitable to hold young stock, primarily in autumn, and the Quoiba yard, up to 100 kilometres away.
"Particularly for those farmers on the North, South and East, their freight bills could increase by 50 per cent," Mr Cook said.
He said he would be making a submission on behalf of industry to council.
"We do not want to handbrake the decision making process but rather have a consultative one where everyone wins," he said.
Tasmanian Farmers and Graziers Association president Jan Davis said any closure or sale would be inconvenient for some farmers.
"We want to make sure they have an option to get their product to market ... that those people who use it have information about what other options they have."