What have livestock markets learned from 2020?

Livestock markets will enter 2021 with cautious optimism following a vintage year.  

Higher throughputs and prices for prime cattle and lambs, milkers and breeding sheep proved the resilience of the liveweight system.

The sector’s innovation and adaptiveness were demonstrated as markets adjusted to rising butcher and wholesaler demand, and worked within evolving hygiene and social distancing rules.

At a time when Britain’s farmers came to the fore, the markets rallied to help them feed the country, Farmers Weekly reflects on a remarkable year and what the mart sector has learned.

Marts have responded to processor closures, changing hygiene rules and new social distancing guidelines, ensuring a competitive bidding process online or ringside.

Even with major question marks over how diminishing subsidy and Brexit will impact on farming businesses and livestock markets, the past year bodes well for the sector, showing it can work

through peaks and troughs in demand.

Social distancing has “pushed at an open door”, in terms of online sales. Several markets were looking into virtual streaming and online bids pre-Covid, and this was already a regular

fixture at some pedigree sales and dairy dispersals.

Farmers have been spared huge journeys for elite breeding stock, and as farmers get increasingly “time poor”, this could help markets stay relevant in the future.

The extreme volatility seen this year shows that livestock trading is an essential service provided by markets that impact on food security. In other years, commission from livestock sales

may have looked the poor relation compared with consultancy and property valuations. 

Whether a market is a larger, more modern agri-business centre housing other services and businesses or a smaller, older site, multiple income streams will help the market survive. Livestock

prices will be pressured in the future and a robust business structure is essential.  

Seasonal sales of calves, store lambs and breeding sheep in more remote areas of Britain were hugely successful this year. Crofters and hill farmers generated income, injecting cash into

fragile rural economies.

A strong year for sales will hopefully enable some smaller and older markets to reinvest in infrastructure. Government demands on welfare, safety and environmental standards will not let up.

While markets compete on a local or specialised breeding level, 2020 has unified the industry.

Markets and auctioneers discussed dates to avoid fixtures clashing. They also shared venues to ensure social distancing and adequate buyer presence after the cancellation of flagship ram

sales.

Similarly, prior to Covid-19, the Livestock Auctioners’ Association’s Next Generation Group had started bringing young auctioneers together for informative trips out to swap ideas and debate

issues. A similar initiative had been started by the Institute of Auctioneers and Appraisers in Scotland.  

Selling livestock in a competitive public environment and paying vendors on the day has inherent challenges, such as disruption from anti-farming extremists and exposure to unreliable buyers

and bad debt, which remains a very difficult issue. 

Strong lines of communication will strengthen the sector by sharing valuable information and best practice to improve markets and help them thrive. 

Shows and key farming events have been cancelled or moved online and face-to-face interaction has been reduced.

Some markets have mental health charity workers, chaplains, health drop-in centres and host sessions for the National Federation of Young Farmers’ Club and other local events.

This type of work will remain a key additional benefit over and above the core role of marketing for rural businesses. Many people missed this valuable interaction this year and will hope

normality resumes.