Selling Systems

• Sue and Geoff. Patrick, Binnaway, NSW.

There are basically four existing systems for the sale of Goats :-

1. Open Public Auction
2. Private Treaty
   1. Paddock
   2. Over the Hooks
3. Auction Sale by Description
4. Co-operatives

Open Public Auction

Generally conducted by livestock auctioneers /agents at established saleyards .

Breeding and slaughter animals are consigned to a particular agent who auctions the animals on behalf of the vendor. Prices are generally paid on a $ per head basis for all or selected animals in a particular pen. It is accepted practice that any prospective bidder can nominate to purchase any single or group of animals within a pen prior to the start of bidding on that pen. Vendors are charged a commission by the agent. The agent guarantees the payment with proceeds generally being received within 7 days.

Private Treaty

Generally this type of sale falls into 2 categories , Paddock or Over the Hook .

Paddock Sales

Can be with or without an agent . Generally based on an agreed price per head for a specific number of animals on the vendors farm, eg capretto is mostly sold this way with the negotiated price often including delivery to a nominated abattoirs.

Over the Hook

A selling method for slaughter animals, payment is on a per kilo basis Hot Standard Carcase Weight (HSCW) or the conversion of this to cold weight. Processors require growers to produce animals to a specific carcase specification ( grid ). Discounts on the rates paid apply to animals which fall outside specifications. Breeders should request kill sheet information on their animals in order to monitor their assessment skills .

Auction Sale by Description

Computer Aided Livestock Marketing (CALM) is a computerised auction system which is able to be used for the marketing of goats. The detailed assessment of goats for auction gives the standardAusMeat description of the animals for buyers to bid on.

Through CALM, carcase weight loss due to time off feed is minimised as kids must be transported to abattoirs by the most direct route and slaughtered within 24 hours of arrival. This reduced weight loss means processors receive more saleable meat for each kid purchased.

Prime kids may receive higher prices in sale-by-description systems such as CALM .than in the auction market. This is because payment is made on an "over-the-hooks" (or carcase weight) basis, and depends upon whether carcases meet specifications.

Penalties for failure to meet specifications are detailed in a price-grid based on carcase weight and fat-score. Detailed live assessment of kids prior to their listing for auction, therefore, is absolutely vital.

Co-operatives

Co-operatives offer growers / breeders the opportunity of joining together equally with the common goal of marketing their product.

The advantages of this type of marketing are as follows: -

• Small lots can be combined to gain the opportunity to participate in markets that generally would not be available to an individual producer, ie economies of scale.
• Offers opportunity to easily gain product feed back and as the Co- owner of the business a network is provided to assist growers in the production of a product that suits specific markets.
• Profits can be distributed back to the member (Usually on the basis of volume of product supplied).
• Provides an outlet for the full range of their produce.

General Grower Information

The opportunity exits to improve market prices for kids through careful selection of sale lots. A selling system that returns a premium to the producer for meatier prime goat kids should:-

• Guarantee to buyers that carcases meet specifications for carcase weight and fatness.
• Reduce the loss of carcase weight by minimising the time kids are off feed before slaughter.
• Reduce loss of carcase quality by minimising handling and stress.
• Be aware of and up to date with the latest market information and reporting on price penalties and premiums for carcases ,skins and other saleable components.

Contract sales are becoming increasingly popular for goats for live export and other categories where pre-determined specifications have to be met. Such a system provides protection for both buyer and seller and has the advantage of focusing attention on objective description of goats.

© 2000 B.G.B.A.A.