 An H&H Group Company |
Press Release 18th April 2011
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| Glyn Lucas |
Pedigree and commercial dairy farmers have the potential to further increase their asset values by marketing surplus stock through the auction system according to an industry expert. Harrison & Hetherington Head Pedigree Dairy auctioneer Glyn Lucas this week encouraged farmers to consider their marketing options.
“We’ve recently been monitoring prices achieved at pedigree and commercial auctions compared to private sales registered animals. There is no doubt that the auction sale option is one that should be seriously considered. On a 200 head reduction or dispersal sale this could be a significant difference in excess of £50, 000,” he says.
“Farmers with registered and non-registered animals are also best able to achieve premium prices at auction sales and realise the full market value of their animals. Reduction sales, dispersals and club sales are highly publicised and these well attended events bring together a lot of potential buyers.
“Several Border and Lakeland Holstein Club consignment sales have averaged over £2,000 and this reflects the strong supply and demand situation within the dairy industry.
“Having surplus animals for sale at auction helps promote the breeders own herd and helps build a strong reputation with other dairy farmers. Breeders are becoming increasingly more marketing conscious and today promote their animals in a very positive way.
“Cattle sired by popular AI bulls helps to add further value as the marketplace determines the true price. Often, selling at auction is a ‘win-win’ situation,” says Glyn.
However, demand for commercial pedigree and non-registered animals remains equally strong and auction prices provide an additional premium for the vendors. Having large dispersal sales, whether registered, commercial pedigree or non-registered herds, includes across the board prices for all young stock and milking age groups.
“This is a great opportunity for farmers to benefit from the strong market conditions prevailing within the industry. Dairy farmers are currently able to offer all ages of animals at auction with immense confidence. Pedigree and commercial breeders should consider contacting their preferred livestock marketing company and reap the benefit of realising an increase in the value of their livestock,” Glyn said.
Edward and Linda Wilson’s Penrith-based Highoaks Holstein herd held its First Dispersal Sale in November 2010 and realised an average price of £2,200 with a top price of over 5,300gns. The farming couple are hosting their second dispersal sale on the 27th April with over 400 animals listed.
“Offering a large number of animals for sale such as the Highoaks Disperal brings out the best in buyers and everyone has an opportunity to value as well as purchase an animal in the ring. Purchasers also have added confidence when buying progeny and young stock from animals previously sold at auction.
“Private registered sales have a place to play and can be an option in certain cases. However, anyone interested in selling surplus cattle this year should seriously consider maximising their herd’s true asset value by offering animals through a sale ring or consignment sale,” Glyn concluded.
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