Those councillors present voted unanimously in favour of the surcharge at the September 12 meeting of council.

Crs Duncan Gair and Graham McLaughlin were absent from last Wednesday’s meeting.

Council will now introduce a market price surcharge for feeding cattle for each bale of feed.

The surcharge was brought before council due to the ongoing drought.

A report presented to councillors said “the SRLX cannot sustain the ongoing increases in feeding costs as it will result in a significant detrimental impact on the SRLX budget”.

The market surcharge will be calculated utilising a formula that offsets a standard bale charge (the price as of June 30) against the current market price of bales of fodder delivered to the SRLX.

The council report said it would be based on a bale rate which would be reviewed after each load purchased.

Council's Deputy General Manager Operations, Finance and Risk Barry Paull said once the price of feed went back down, so too would the feed charge at the SRLX.

“The cost of acquiring of feed for cattle is going through the roof. We’re not immune to that because we need to have a supply of fodder out there to feed both transit cattle and cattle that stay in the yards overnight after the sale.”

Mr Paull said it was not just the cost of the feed itself, but transportation costs were also significant. Councillor Ian Scandrett also spoke about the rising cost of feed. “It’s frightening what it’s costing now if you can get it.”