Kyabram food co-operative plans on hold

Plans to establish a food co-operative at Kyabram have been put on hold.

The Goulburn Valley Food Co-operative says it would be too risky for local investors to go ahead with the plan in the current economic climate.

Co-operative chairman Les Cameron says the recent collapse of Banksia Securities has also unnerved investors.

However, he says the owner of the proposed site at Kyabram still plans to establish the facility.

"He's telling us that he will go ahead and build effectively what will be a either a warehouse or a factory," he said.

"We will still have an option up until March to be able to put up the money necessary to convert it into a food factory but we are not feeling anywhere near as hopeful as we did two or three months ago."

Source: ABC News, 13 December 2012