Agribusiness News August 2024 – Management Matters: Auction Marts

History

In a system described as ‘Independent, transparent, open and competitive’; farmers have been trading livestock at auction marts for over 200 years.  During that time, livestock markets have faced considerable challenges including the 2001 and 2007 outbreaks of Foot and Mouth, ongoing challenges of Bovine Tuberculosis (TB), deadweight selling and more recently, the Covid pandemic in 2020 which increased the use of online sales platforms.

As the volume of livestock in the UK has reduced, so too has the number of markets.  Markets have declined by approx. 80% since the 1960s. Currently, there are 122 livestock marts operating in the UK, 72 in England, 25 in Scotland and likewise 25 in Wales.

A 2021 report conducted by The Royal Countryside Fund found that as well as auction marts declining, many have re-located.  The report highlighted that only 30% of marts could be described as a ‘traditional’ town centre livestock mart, with 33% described as relocated to less urban locations and 25% described as an agri-business centre.

Latest Figures from IAAS & LAA

The Institute of Auctioneers and Appraisers in Scotland (IAAS) has, since 1926, represented livestock markets, valuers and auctioneers.  The latest figures from IAAS for 2023 show positivity for markets in Scotland with reported increased throughput and prices.

Despite the declining numbers of sucker cows in Scotland; the number of cattle sold through Scotland’s 10 auction companies which includes Aberdeen & Northern Marts, Lawrie and Symington and United Auctions increased by 0.78% with an uplift in value of 13.71%.

Store cattle numbers through the live ring rose by 2.4% which is surprising when in the same year calf registrations fell by 2.6%.

In England and Wales, despite a reduction in numbers of breeding herds and flocks, the latest figures from the Livestock Auctioneers Association Limited (LAA) show growth across most sale categories in 2023, compared with the previous year.  Around 756,000 store and breeding cattle (including dairy) were traded, with prime sheep and cull ewe numbers also increasing.

More than a Mart

While livestock auction marts are recognised as businesses operating a system that benefits both buyers and sellers of livestock; they have an ever-increasing role as a rural hub, allowing farmers and rural communities the opportunity to socialise.

The Royal Countryside Fund ‘More than a Mart’ report highlighted how crucial auction marts are in tackling social isolation, highlighting that auction marts mean far more to the local farming and rural community than purely venues for the sale of livestock.

In 2021, following the lifting of Covid restrictions imposed which saw many markets operate a drop and go service; markets across the country reported farmers returning to the auction system who had previously sold deadweight, highlighting the importance of marts in being meeting points for farmers.

Although arguably from a price perspective, selling through the mart is a gamble depending on buyers present ringside and where you are in the draw;  auction marts continue to be an important part of livestock trading and for many, an important social connection for farmers’ and crofters’.

 Sarah Balfour, Sarah.barbour@sac.co.uk