Auction markets continue to face severe challenges
From the Farmers Guardian
LIVESTOCK auction markets will continue to face severe business challenges with closures inevitable in future.
But this will give opportunities for those market businesses prepared to consolidate, invest, modernise and diversify.
This was the conclusion of Dr James Jones, head of farm management at the Royal Agricultural College after interviews with 20 auctioneers (including all members of the executive of the Livestock Auctioneers Association) and visits to a similar number of livestock markets in England and Wales.
The areas in particular identified for market closures were Wales, Yorkshire and Humberside, and the North East where livestock numbers within a markets’ catchment area were low compared to other areas of the country.
“Consolidation has to continue in order to create scope for added turnover for those markets that remain in order to cope with a business climate that is full of challenges and a relentless tide of cost pressures,” he said.
“The new markets built in recent years give some clues to the attributes that markets need to survive or thrive in tough trading conditions. They are generally well located in relation to road access, with good facilities designed with multiple use in mind.”
While the average age of those attending markets is high, Dr Jones acknowledges that this is probably due to a logical division of labour on farms - with the older generation in the farming family going to market while the younger generation are tied-up working on the farm.
“The danger is that the younger generation having never been to the market, might never take their turn to do so and prefer to sell deadweight instead,” he warned.
He highlighted Skipton Market which has a focus group of younger farmers to try and ensure that all that can be done to appeal to the younger generation is done.
“There is also scope to auction a range of agricultural items as well as non-agricultural stock and produce.”
Chelford Market in Cheshire is the largest horticultural market in the UK, while many auctioneers also sell chattels.
• Dr Jones was speaking at the National Farm Management Conference held in Oxford last week and organised by the Institute of Agricultural Management and British Institute of Agricultural Consultants.
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