Scotland-Cattle markets Surge as the cow trade opens for beef.
LIVESTOCK markets have bucked the downward trend experienced by most businesses during the past 12 months.
Figures released yesterday in Edinburgh by the Institute of Auctioneers and Appraisers in Scotland (IAAS) gave a clear pointer that the open market for virtually all classes of livestock is experiencing a remarkable revival.
Total turnover in thADVERTISEMENTe year to 31 December 2008 was rated at just short of £427 million, an increase of £96m on 2007.
Alec Wilson, president of the IAAS, said: "Clearly, all our members are delighted with these results, but let us not forget we have been through exceedingly tough times since the onset of the BSE crisis in March 1996.
"That was followed by the foot-and-mouth epidemic of 2001 when most marts were shut down for the better part of seven months. That was then followed in 2007 with the same disease in Surrey, albeit on a much lesser scale, when our gates were shut for seven weeks."
The first livestock auction company in the UK was founded in 1817 in the Borders town of Hawick by Andrew Oliver, a solicitor by profession but one with farming connections. Oliver recognised that many farmers were subject to the whims and machinations of some decidedly sharp dealers and traders who took every opportunity to take advantage of farmers who had little marketing muscle.
It was not until 1846 that Robert Peel repealed the Corn Laws and cancelled a tax on sales of all livestock, giving the green light to a fairer trading environment. Following that decision, auction marts were established all over the country, mostly next to railway stations.
Since the reforms of the Common Agricultural Policy of 2005 there has been a noticeable reduction in livestock numbers: Scotland has one million fewer breeding ewes than a decade ago while the number of specialist beef cows has shrunk by 20,000 head.
Yet, last year saw the auction marts increase the numbers of most classes of livestock coming under the hammer. The total sold during 2008 was marginally short of 3.5 million head – up by more than 300,000 on the year.
The price of both cattle and sheep destined for slaughter, as farmers well know, has increased very substantially. The value of these animals has risen from the 2007 total of £149m to a shade over £208m.
However, the greatest boost to auctioneers’ throughput has come from the sale of cull cows aged over 30 months. Until 18 months ago older cattle were prohibited from entry to the human food chain, a measure dating back to the BSE crisis. Redundant cows that were previously worth barely £400 are now selling, in some instances, for over £1,000 per head. Meanwhile, while milk producers have suffered a succession of price cuts, the value of replacement heifers has shot through the roof with the very best making prices nudging on £2,000 per head.
But Wilson remains no more than cautiously optimistic. He said: "Bad debts remain a constant fear in these times of tight credit lines. However, farmers know that they will always get paid for their stock, frequently minutes after their animals have gone through the ring.
"The biggest worry still remains the ever increasing level of regulations we are faced with, especially in relation to sheep identification. But we are more fortunate in Scotland than in England in having a government that is willing to listen and address our problems."
