A MAJOR sheep processing plant in Katanning has been given a $12 million loan to expand and upgrade its facility through the state government’s co-operative companies loan scheme.

The three-year loan will fund capital works to enable the farmer-owned Western Australian Meat Marketing Co-operative (WAMMCO) to expand its lamb and sheep meat processing capacity.

In addition to expanding the processing facility, other improvements will include a new high-tech freezing unit and the construction of additional staff accommodation.

The new loan is in addition to a previous $12m loan provided in 2024 for stage 1 of the Katanning upgrades for a new chain and container park.

WAMMCO’s Katanning plant is currently the only major producer-owned co-operative meat processing and marketing company in Australia, with more than 700 farmer members across WA’s agricultural regions.

Agriculture and Food Minister Jackie Jarvis said investing in local sheep processing facilities has never been more important to build capacity and assist industry to respond to the changing global landscape.

“The Cook Government is supporting our sheep producers to capitalise on international market opportunities by supporting WAMMCO to expand production.

“The co-operative’s Katanning plant is the largest employer in the Great Southern, with more than 300 staff.

“This increased processing capacity will provide a welcome boost to the local economy and state’s sheep industry as a whole.”

More than $151m in loans have been provided to Western Australian co-operatives for capital purchases since the co-operative companies loan scheme began in 2005.

The scheme provides tax benefits that reduce the capital costs by about 30 per cent to co-operatives owned by WA farmers and fishers.