Wednesday, July 24, 2019

Livestock auctions worth £3.42bn to rural economy

May 1, 2019 by  
Filed under Livestock

Livestock auction market contribute at least £3.42bn to the rural economy and support more than 3,000 jobs, according to an independent report.

Commissioned by the Livestock Auctioneers Association, the report investigates the economic contribution generated by livestock auction markets in England and Wales. It examines how this stretches beyond the direct support to the livestock industry and farmers.

Some 110 livestock auctions markets across the country directly employ about 2,599 people, generating a turnover of £1.76bn. This direct expenditure injected into the economy is boosted by a further £1.66bn of indirect and induced expenditure, totalling £3.42bn to the economy.

Livestock markets contribute total employment to the equivalent of 3095 full-time jobs. But the true figure could be higher because these figures don’t consider the total contribution of ancillary businesses, such as farm supply stores, located on-site or nearby.

Business hub

Report author and independent economic analyst Sean Rickard said livestock markets were at the centre of an agricultural network. As well as selling livestock, they provided both a social and business hub for those who use them.

“The estimated expenditure and employment set out in the report is a significant underestimate of the total contributions of auction markets, because the values do not include the expenditure and employment generated by businesses located within their sites, or in close proximity.”

Livestock auction markets are now increasingly found at the centre of a network of rural businesses that includes livestock related activities such as feed companies, farm machinery sales offices and land agents – as well as retail outlets and conference venues.

At the heart of these hubs, livestock auction markets also carry a social responsibility. Farming has become an increasingly isolated and lonely occupation, and the social networking the auction market provides should not be underestimated, said Mr Rickard.

Further benefits

“Auctions not only provide an opportunity to socialise, but it is now common for auction markets to provide facilities where farmers can meet with trained social and/or health workers to share their concerns and if appropriate directly address issues raised by stress and illness.”

Central to achieving these wider benefits was the ability of markets to realise added value for both buyer and vendor, said Mr Rickard. Livestock farms were small businesses and as such had little market power when compared to large scale, corporate food companies.

Put simply, they were weak sellers if entering into private negotiations with powerful buyers, and risk a transaction that under-valued their animals. In contrast, selling livestock in an open-cry auction market would guarantee a fair price.

Knock-on effects

“Auction markets are not only intuitive and transparent,” said Mr Rickard, “but as neither buyer or seller can unfairly influence the price, they ensure the price is ‘fair’ – it accurately reflects current demand based on available information.”

Livestock Auctioneers Association executive secretary Chris Dodds said: “While this report clearly confirms the importance of the live sales ring in securing fair prices, and a transparent and traceable marketing system, it also highlights the often-missed benefits to the wider rural economy.”

Without livestock auction markets, farmers would be in a far worse position. “Knock-on effects to the wider rural economy would be devastating. The farming community must get behind and support its livestock auction markets.”

Speak Your Mind

Tell us what you're thinking...
and oh, if you want a pic to show with your comment, go get a gravatar!

 
barbour pas cher barbour pas cher barbour pas cher barbour pas cher barbour pas cher golden goose saldi golden goose saldi golden goose saldi golden goose saldi golden goose saldi doudoune moncler pas cher doudoune moncler pas cher doudoune moncler pas cher doudoune moncler pas cher doudoune moncler pas cher moncler outlet online moncler outlet online moncler outlet online moncler outlet online moncler outlet online