Livestock auctions play a crucial role in the agricultural landscape of South Africa, offering numerous benefits to farmers, buyers, and the industry as a whole. The auction floor provides a competitive bidding environment where farmers and buyers have the opportunity to explore different breeds, ages, and specifications, allowing them to make informed decisions.
Here are a few things to know about livestock auctions:
Buying at Auction
Registering as a bidder at a livestock auction is similar to auctions across other industries. Potential buyers are required to register as a bidder by providing auctioneers with an original identity document or passport, proof of address no less than three months old, and a copy of his/her VAT registration certificate, where applicable. Buyers who represent a business will need to register, and provide an original identity document and proof of address for the directors/members of the business.
The purchase of livestock can be made on behalf of someone else, but the third party will need to provide the auctioneer with a signed power of attorney, along with the above-mentioned documents. If this is not met, the individual will be held personally liable for any purchases made.
Tips for Buying at Auction
Navigate registration and inspection: General information is provided to the bidder before the auction. However, it’s imperative that you conduct your own research before purchasing livestock at auction. Find out which documents you will need to make the purchase and transport the animal/s. While an inspection is usually conducted before the livestock reaches the auction floor, buyers are encouraged to do their own “research” and discern subtle indicators of the animal’s well-being such as coat condition, overall appearance and teeth.
Get Familiar: To ensure potential auction buyers make a purchase that meets their requirements, they are encouraged to familiarise themselves with the animals and lots before bidding.
Set a Budget: Establish a clear budget for the purchase, including any additional costs like transport and veterinary checks.
Understand Auction Dynamics: Familiarise yourself with the auction process and bidding dynamics. If you’re a first-time buyer, seek professional advice or look at what other buyers are doing to get a feel for the process.
Points To Note
Foot-and-Mouth Disease Areas: Farmers residing in FMD-controlled areas can only attend auctions in those zones, otherwise known as infected and protection zones. If a farmer is interested in purchasing animals inside these protection zones and moving them to a disease-free area, it requires clearance and an evaluation from a veterinarian. The movement of these animals is also restricted, as animals who have tested negative are required to be transported in a sealed truck. While the option to purchase and move animals out of an FMD area is permitted, it is often not advised by experts as it can be too risky.
Purchasing For The First Time: According to the Department of Agriculture and Rural Development, when attending an auction for the first time it is important to note that bids are made on one average animal in the ring but all animals in the ring must be bought. For example, if there are five animals in the ring and the bid is closed at R4000, the total cost of the group will be R4000 x 5 = R20 000 plus VAT if applicable. Not understanding this point can lead to confusion.
Last Words
From thorough research and pre-auction inspections to understanding market trends and adhering to legal requirements, successful livestock acquisition involves a multifaceted approach. Farmers must set realistic budgets, establish clear goals, and be prepared for unexpected challenges. However, networking with industry professionals and sellers provides valuable insights, fostering a sense of community within the agricultural industry.
With these considerations in mind, the journey of acquiring livestock at auctions becomes more than just a business endeavour but also an enriching experience that contributes to the sustainable growth of the agricultural sector in South Africa.
