Some questions that are worth considering include sale method. While local saleyards do offer a degree of competition, demand is often determined by buyer attendance. The ACCC investigation into the cattle market identified that competition for cattle purchase typically takes place within 400km of the point of sale. This could mean that competition for cattle will depend on what processors, feedlotters or other purchasers are likely to exist in this radius and attend the sale.
How animals are marketed in advance of a sale is also important to determine demand. It is worth asking the agents who you could engage how they will market, advertise, and generally build interest and demand for cattle ahead of the sale.
Sale methods don’t have to rely on physical sale yards. Auctions Plus is the major online platform for cattle and sheep sales. The opportunity with Auctions Plus lies in the cattle being sold on farm, and the purchasers will pay the cost of transport and will be responsible for the scanning and transfer of the animals on the NLIS data base.
As a seller the costs are in listing fee – $7.00hd, the transaction levy and the agent commission. The agent commission should include the pre-sale assessment and listing as well as being on hand for the delivery of the cattle to the new owner. Often this online listing increases the radius for potential buyers and increases demand.
