In a move that displays solid confidence in Australia’s cattle sector, Teys Australia has announced it is investing $50 million to upgrade its cold storage system at its Wagga Wagga plant.

The investment is designed to increase efficiency at the site while enabling the group to improve its ‘value added process’ of its products and pay its cattle suppliers current market prices. Of the total volume of products processed at Wagga Wagga, 60% are exported to Korea, Japan and the U.S., while the remaining 40% are sold domestically.

“We are aware we have to invest downstream to contain our manufacturing costs to have a sustainable future in the global market,” says Wagga Wagga general manager, Andrew Ross.

The upgrades to be completed are focused on minimizing physical handling of packaged products, health issues, and reducing damage to cartons.

All of the cattle processed at the site are source locally, with the plant contributing $512 million to the local economy per year. In 2014, the plant processed 318,000 head of cattle, however in 2015 the site’s kill numbers are expected to be somewhat lower due to tighter availability of stock and the plant eliminating Saturday shifts.

News of the planned investment is very welcome to the regional cattle industry, as it ensures them a long-term market for their cattle. “It is a great vote of confidence in the Riverina cattle industry and Wagga Wagga in general,”said Glenn Fordyce, livestock manager for Elders, Wagga Wagga. “I guess it supports their investment in the local cattle market and must give producers a feeling of support.”