There was a resounding message from the audience of more than 250 people who heard a sample of the 94 submissions sent to the council based around a request from a private operator to close the Caramut Road yard which has operated for about 40 years.

The response was so overwhelming the venue had to be changed to the adjacent entertainment centre after people struggled to fit into the council chambers where the meeting was scheduled.

It was one of the largest community turnouts to a council-organised forum in recent history.

When the 13 speakers had finished their submissions Mayor Michael Neoh said: "We are glad you have spoken. The council will consider your views so we can make an informed decision."

He earlier indicated the council wanted to respond by November to a request from Victorian Livestock Exchange which wants the Warrnambool and Camperdown municipal yards closed so it can establish a $12 million regional selling centre.

Almost every speaker urged the council to carefully consider the implications of closing the Warrnambool yard and opening the gates to a private operator.

Many warned the council could face a class legal action from traders if the yard was closed and they lost their share of the estimated $13.7 million in economic benefits for the region.

Former councillor and farmer Frank McCarthy summed up the mood by warning: "If the saleyards are closed you can say goodbye to Warrnambool business."

He said there were 40 vacant shop sites already in the CBD and loss of the rural spending power of saleyard patrons would further dampen the economy.

Warrnambool Stock Agents Association secretary Gerald Madden said the Warrnambool yards had the third-highest throughput in Victoria and generated more than $300,000 in surplus funds which went back into council coffers.

"It is unprecedented for VLE to dictate that Warrnambool City Council must close and transfer its operations to VLE which is a private company," he said.