NEW ZEALAND-COMPUTER LIVESTOCK AUCTIONS-
Some farmers like to see and touch animals before they buy them, but that tried and trusted system may give way to a few quick computer key strokes in the future.
The country’s biggest livestock trader PGG Wrightson (PGGW) kicked off a new era for New Zealand farmers last week when it launched its internet website for livestock trading, Agonline, which allows the entire transaction to be completed online.
From now on it will be possible for farmers to bid and pay for livestock without leaving the farm, and then have them arrive on a truck several weeks later.
PGGW already controls 50 to 60 per cent of livestock traded in New Zealand, and hopes to increase that share through the new system.
Agonline will initially be open to dairy farmers for trading cows, replacement heifers and calves, but later this year the company plans to open it up to sheep, beef cattle and deer trading. Both breeding stock and prime animals will be auctioned online.
PGGW already trades 83,000 dairy cattle a year, mainly though its livestock agents
The site will be along the lines of the popular TradeMe system, and a similar livestock site in Australia, AuctionPlus, which now attracts 20 per cent of that country’s livestock trading business.
There will be fears that it could lead to the demise of saleyards, and PGGW group manager of customer services David Skilling said it may lead to further rationalisation of smaller less viable saleyards.
"But we certainly don’t see it becoming the dominant way people will transact,’’ he said.
At the moment there are a number of websites where sale animals can be viewed, and TradeMe auctions a limited amount of livestock, mostly animals for lifestyle blocks. However the amount traded is probably less than one per cent of the total.
Mr Skilling said a high percentage of dairy farmers were already using the internet for information and business management, so Agonline would be a natural extension.
"This is a significant development in the rural sector.’’
The system is seen as easy and convenient to for time-pressed farmers, and is targeted especially at younger, internet-savvy
farmers.
"They are becoming more and more comfortable with e-commerce,’’ Mr Skilling said.
Auctions will run for two weeks, and the exclusive agency agreement provides buyers with certainty that the stock remain available until the close of the auction.
Livestock Improvement Company (LIC) data has to be provided so that farmers have an independent performance measure of the stock.
Mr Skilling said PGGW had just under 100 dairy representatives, and these would be an essential part of the process to manage a transaction through to delivery as they do with the current Sale and Purchase of Dairy Cattle contracts. This will include verifying the specifications listed, monitoring animal condition, arranging herd inspections, and ensuring bidders’ questions are answered online.
When bidders register they have to agree to an ID verification and credit checks, and payment will be made through a secure payment system.
"I truly do believe this will be an easy way for farmers to buy livestock, and they will come to rely on it more and more,’’ he said.
Paul Edwards, PGGW’s dairy livestock manager said the company was using Australian website AuctionPlus as model of what it wanted to achieve.