Points to remember before buying stock online

How often have you seen livestock for sale on social media or online platforms? As people grow more used to online shopping, it’s probably only natural that livestock are starting to be advertised more frequently. I have lost count of the number of people who tell me they have seen cattle for sale on websites such as Gumtree. Even more frequently, sales pages on Facebook with groups located in regions or for broad livestock sales always seem to have cattle for sale.

While there is nothing technically wrong with buying and selling livestock online, there are several significant differences to consider as opposed to selling general items. For potential purchasers its important to be aware of both the risks of online livestock purchases and to understand your legal obligations associated with livestock purchases.

Online listings are more frequently appearing across social media

As a livestock seller, you do have certain obligations to comply with - regardless of the method you use to sell livestock.

1. You must have a Property Identification Code (PIC). In NSW anyone who keeps or owns livestock is required to ensure the land where the livestock are kept has a Property Identification Code or PIC. 'Livestock' includes one or more cattle, sheep, goats, pigs, deer, bison, buffalo, camelids, equines (i.e., horses and donkeys), 100 or more poultry birds or 10 or more emus or ostriches. If you are unsure about you PIC or have yet to acquire one, you should contact the NSW Local Land Services. In other states, you can contact your local office of the Department of Primary Industries.

2. You should be registered and accredited under the Livestock Production Assurance (LPA) Program. Participating in this program ensures you have considered and are managing the areas of risk that may impact on food safety - particularly if your animals are sold for consumption at a later point in time. Contact the LPA Helpline on 1800 683 111 or visit the website

3. You will need to provide a National Vendor Declaration to the purchaser of your livestock. The NVD also acts as a Waybill or Transported Stock Statement. These documents are essential in order to move cattle legally from property to property, as well as providing advice on health and feeding history of the stock.

An NVD is required to move cattle to another property

4. To legally move cattle (or sheep) you are required to have them identified with approved National Livestock Identification System (NLIS) tags or devices. Your devices can be ordered through your local rural merchandise store, but before you can order you will need and NLIS account.

5. Before you actually move your livestock, they have to be tagged!

Check you have tagged all your animals with an approved NLIS device

Other Documentation you may need to consider

In NSW, Transported Stock Statements (TSS) are required for any movement of stock where an NVD is not required (eg transporting stock for agistment or to attend a local agricultural show). This also includes moving horses, and you can obtain specific TSS Horse forms from the LLS. In other states Waybills are required and act in the same way as a TSS. Waybills are usually only used when animals are being transported from one place to another where no sale has occurred.

Animal Health Statements

Animal health statements for cattle, sheep and goats are not mandatory in NSW. However they may be required for some stock movements, especially interstate. If you are selling online you may find your animals purchased by someone from another state and you must supply the completed form. These forms can be downloaded from Animal Health Australia

“How much should I ask for my stock”

Setting a value on your stock can also be a challenge. Many people overinflated the value of their animals. Realistic prices should be set on the class of animal that you are planning to sell, and ideally you would work from an average of that class of stock based on reports from local sales, and online auctions such as AuctionsPlus.

Being realistic about a price is a challenge for many producers! While we all hear of the top figure reported for cattle, that may only be one pen out of a sale. So using averages is more realistic and likely to avoid not selling at all.

Managing Risk

Online selling through unregulated platforms is a risk. Many people choose to sell online to avoid agents commission, sale yard fees and other costs. However it’s important to consider if avoiding these costs exposes you to a greater loss.

Stock & Station Agents carry insurance to cover the risk associated with non payment. Using a registered & licensed agent can offset that risk. Using an agent doesn’t mean you cant sell on line or direct to another producer. If that is the way you want to sell stock you can advise your agent accordingly.

Buying Online

What should you consider?

Buying online from social media or sales pages such as Gumtree is a more risky strategy to acquire livestock. There are several important things to consider from both a legal position as well as from your own approach to purchasing stock.

Legally you are required to receive the National Vendor Declaration (NVD) and keep it on file for a period that can be as much as 7 years.

You are also required to transfer those on the NLIS database from the property or origin to your own PIC.

Many people choose to buy and sell this way to avoid these legal requirements. There are some real risks in doing this. Firstly if you are stopped by the Police and requested to provide a movement document the penalties for not having one can be very significant.

The other risk comes when those animals are to be sold in turn. Chances are these animals may not be sold on line again. And if they are to be sold through a Saleyards or to another destination, the lack of NLIS devices or NVDs may prevent them being sold.

Its also important to remember that it only takes one animal that has a chemical residue from soil contamination or a health treatment that was not declared, to impact on market access. So having animal history, including feed and health treatments is vital.

Purchasing online is a challenge in terms of risk also. you are essentially buying from a stranger. So you need to know:

• Do the cattle even exist?

• Are they what you expected?

• Is the price realistic?

These are just starting questions, but you should ask them before you think about purchasing them. While you are thinking about these points, have you thought about:

• What pests, diseases or weeds could these cattle have? Are there burr seeds in the coats or noxious weeds they could spread?

• How quiet are they? Have they been handled much?

• How old are they?

Often these basic questions are overlooked and the result can be anything from old cattle that look nothing like the picture to feral cattle that don’t want to be yarded or handled in a safe way!

Is the temperament really what you expected?

Before spending money to be cattle online, ask these questions or even better go and look at them first! A legitimate seller will be happy for you to inspect them prior to purchase. If the cattle are too far away, again it might be worth considering asking an agent to do so on your behalf. Remember the long term cost of a bad decision will outweigh savings you might make doing it yourself.

“Remember the long term cost of a bad decision will outweigh savings you might make doing it yourself.”

Ultimately, it is unlikely that livestock sales online are going to fade away. It’s probably more likely that they might increase. Either way, before you buy or sell, just remember that while you may be using the internet to make the process more convenient, you cant overlook your obligations or the risks. Asking the right questions and being part of the system not only protects you, but also protects the industry which keeps us all in business! It only takes one animal to bring us undone!

Is it really a great time to be a stock agent?

The continued strength of the Australian cattle market is definitely the most frequent conversation starter among farmers and in the broader industry. For producers selling cattle, the record prices are exciting and have gone a long way to help recover from the costs of almost a decade of drought.

If you are purchasing cattle, however, the price of cattle can make you feel pretty concerned! The challenge of purchasing cattle on a rising market, with the hope the margin stays positive is something quite a lot of finishers, processors and even restocks are grappling with.

There are plenty of different market indicators that producers can look at as they watch the prices continue to set new records. The most frequently referred to is the Eastern Young Cattle Indicator or EYCI many people shorten it to. Tis week it set a new record of 1074c. The EYCI describes to seven-day rolling average of young cattle (vealer and yearling weight steer and heifer categories) from 23 saleyards across Queensland, NSW and Victoria. It is expressed in c/kg, carcase weight equivalent.

The Eastern Young Cattle Indicator

As a stock agent, I’ve been looking closely at the market over the last 12 months. And many people have suggested it must be an easy job with the prices being so strong.

I think its actually a tough time for new agents!

One of the things I have learnt, is when the pressure comes off production - either when the drought breaks or in this case, the market is so good, a lot of producers tend to relax their focus on the efficiencies that can make a big difference to their business.

During the drought, producers became very focussed on the cost of feeding. They considered how much animals required per day, the cost of energy and protein and the most effective methods of feeding and managing stock. Sadly when the season breaks and there isn’t the pressure to cost out daily rations, some people forget those lessons and inefficiencies tend to sneak back into the system.

Its much the same when it comes to selling stock. With the price of cattle almost double, how any people have actually stopped and looked at their costs of sale and considered if their marketing can be done better?

Its important you cattle’s attributes and value are understood and appreciated by your agent

A good example is a friend who sold 14 young heifers recently. They decided that this year they would keep with tradition and use their local agent, selling through a local auction. That’s fine and they made a good return. At the time about $1350 for their heifers.

In discussion I asked what did it cost to sell those cattle. Pulling out their sale records they added up the cost of transport to the sale years; the yard fees per head; the scanning fee charged at the yard; the national transaction levy and finally their agents commission. When they totalled the sum it came to $1375. So effectively the gave one of their 14 animals away in costs!

Now there is no escaping costs of sale. Commission is something agents charge to market the stock; arrange delivery; organise scanning; administer the movement and transaction levy. They also have to cover their costs in time t loo and try and sell the cattle for the best price. There is also the insurance they have to make sure you get paid for your cattle!

But, not all commissions are the same! So my first comment to all of my producers is to ask what do you receive for the commission that you pay?

Ideally your agent should be working to market your cattle to the best possible return. So that could be using their network to sell your cattle privately to someone seeking a particular article. It could be they will sell through auction on line or in the physical market. However, there’s more to just putting cattle into a sale or “on the box.”

In the case of AuctionsPlus, there can be thousands of cattle listed for sale. That does mean that your cattle are exposed to a much wider group of buyers than the local Saleyards. However, how will your agent make your cattle stand out? You should ask what their marketing plan is? What will they be doing to get your lots in front of the buyers?

AuctionsPlus is just one option to market your cattle

Its also important to make sure your agent understands the background of your cattle. What have you done to prepare them for the next owner? Are they part of a verification program? Accredited for MSA? Are they EU accredited or HGP free? Have they been preg tested and what genetics are they bred from?

Ultimately the last 3 or 4 years decisions and efforts are in the cattle you sell. So you need to ask the questions to make sure that your effort is being recognised.

One of the reasons I choose to take on an agents role was to offer my clients a choice.

Having been involved so closely in their bred decisions; the selection of their animals; preg testing and lifting fertility and helping navigate industry programs; I want to see the best results for that effort. I think its important to work to make sure those animals reach their full value.

Selling on behalf of my clients is a service, and in a year like this, that can be rewarding for everyone. I understand not every person will want to change their agent. I think that’s good. But, like every other aspect of your business, you need to sit done and check its actually the best direction and offering the best return for you.

Physical auctions can be a good method to market - but its not the only option!!

If it’s not, dont be afraid to question or to change direction to find the best option. After all, you have put a lot into the program and its important that be rewarded when you sell.

If you are keen to chat about how you can use my as an agent, or just to chat about options as you evaluate your program I’m really happy to have a chat, so I hope you feel comfortable getting in touch!

Selling cattle - are you looking at the costs as well?

Cattle prices in Australia have reached record levels. One of the most referenced indicators is the Eastern Young Cattle Indicator – or EYCI.  This indicator is used to describe animals on a 7-day rolling average. Based on the reports from 25 major saleyards across Australia it is expressed as cents per kilogram carcase (or dressed) weight (¢/kg cwt).

While the EYCI shows the general trend for young cattle, it is important to remember that there is a fair range of cattle that are assessed to make up this indicator.  Cattle which are assessed as part of the EYCI include vealer and yearling heifers and steers.  These cattle are assessed for average muscle and are within the range of fat scores 2 – 3.  The weight range extends from 200kg up to yearling steers over 400kgs.

The role of the EYCI is to describes the general movements in cattle market prices.  And while it generally closely reflects the physical prices offered for cattle, not all animals fit into the range described by the EYCI.  So, while being closely reflected in physical sale prices, it is sometimes unrealistic to expect the price paid for your cattle will exactly match the reported EYCI value for the date of your sale.

The other area that often cause disappointment for producers at sale time is the issue of selling costs.  While it is accepted there is a cost in selling, it is important to be sure these costs are clear and explained up front to ensure transparency at sale time.

In most cases producers who sell cattle through a licensed saleyard will have series of costs to consider.  In the first instance there is a transport cos to move animals from farm to sale yard.  This is generally charged at a kilometre rate.  Transporters will set their fees depending on the size of the truck and the distance to travel, as well as the number of animals to be moved.  

It is possible to use a transport calculator, developed by NSW DPI to calculate the cost per head once you receive a quote. This can be useful in ensuring your gross margin calculations are as accurate as possible. 

At the sale yards there is a general cost charged per head, based on the use of the yards.  These range anywhere from $6.70 / head to $10.70 /head depending on location.  In addition, the yard operators (either the private company or the local council) will also include a NLIS scanning fee which ranges from $2.30 to $3.20/hd and possibly a weighing fee which may be around $0.50/hd.  As well as these costs, each animal is charged an MLA transaction levy of $5.00 for use in marketing and research for the industry.

The other cost is the commission charged by the livestock agent to market the animals (generally by open cry auction) and ensure the transaction is carried out and the purchaser pays for the animals.  Agents operate on a commission paid on the sale price of the lot – before the fees are deducted.  Commission is charged anywhere from 3.5% to 5.5%

“ it is important to be sure these costs are clear and explained up front to ensure transparency at sale time.”

The combination of the fixed selling costs (yard fees, transaction levy and scanning fees) along with the variable fees associated with transport and commission can often be a surprise to producers.  

One strong suggestion is to conduct a gross margin analysis using a template such as that provided by NSW DPI.  This can allow a producer to factor in the costs of sale and use a series of support and lower price thresholds to determine the actual return to the business. 

Weighing & scanning are often fixed fees

Some questions that are worth considering include sale method.  While local saleyards do offer a degree of competition, demand is often determined by buyer attendance.  The ACCC investigation into the cattle market identified that competition for cattle purchase typically takes place within 400km of the point of sale.  This could mean that competition for cattle will depend on what processors, feedlotters or other purchasers are likely to exist in this radius and attend the sale. 

How animals are marketed in advance of a sale is also important to determine demand.  It is worth asking the agents who you could engage how they will market, advertise, and generally build interest and demand for cattle ahead of the sale.

Sale methods don’t have to rely on physical sale yards.  Auctions Plus is the major online platform for cattle and sheep sales.  The opportunity with Auctions Plus lies in the cattle being sold on farm, and the purchasers will pay the cost of transport and will be responsible for the scanning and transfer of the animals on the NLIS data base.  

As a seller the costs are in listing fee - $7.00hd, the transaction levy and the agent commission.  The agent commission should include the pre-sale assessment and listing as well as being on hand for the delivery of the cattle to the new owner. Often this online listing increases the radius for potential buyers and increases demand. 

Ask your agent how they will market and promote your cattle ahead of the sale

However online listing also lends itself to more pre-sale marketing – especially if the agent chosen to undertake the sale is engaged in finding new buyers.  It also allows vendors to set a realistic sae price.  This may not be exactly to the same height as the EYCI currently is but can be a realistic one that reflects the cattle being sold. 

The new LivestockBI platform can give you and your agent confidence in setting a realistic price

Auctions Plus have introduced a new platform to help agents and their clients set realistic reserve prices.  LivestockBi considers the description of the animals, their property location and calculates a recommended sale price.  This is based on similar types of cattle and location as well as showing the high and low process offered in the recent past for those animals. If you work with your agent to use this information, you can set a realistic sale price and ensure that your variable costs as well as those fixed costs are managed and don’t surprise you when the sale is done.

Selling cattle online?

Selling cattle online is not a new concept.  Online marketing of cattle began over two decades ago in Australia with the launch of CALM – Computer Aided Livestock Marketing.  CALM was the forerunner to the most recognised and popular system of selling in Australia – AuctionsPlus.  

Online listing allows buyers to bid on stock from any device

To my mind the keystone to the trust and success of AuctionsPlus is the independent and objective description that is supplied on all animals listed for sale.  If you have never looked at an AuctionsPlus listing, you will see that every lot is described for basic traits such as sex, age, weight, breed, temperament and pregnancy status.  But there are also plenty of other details such as breeding details, pasture and feed types and even notes on the background of the cattle or sheep.  

Listings also have photographs and videos so you can see the cattle as well as read the details and notes.  

AuctionsPlus is a platform where livestock will be auctioned in an open system and bids can be taken from anywhere in the country.  

As a producer seeking to earn the highest return the opportunity to advertise and expose cattle to a national audience has great appeal.  The more people who see your cattle, the greater the opportunity to have competitive bidding and potentially a better return.

Elite Livestock Auctions in action at the 2020 Texas Angus Bull sale

The opportunity to list and expose cattle to a wider audience has not been lost on other providers of online sales.  There are now other platforms such as Elite Livestock Auctions, which allows producers the opportunity to participate in and bid on auctions that are held in another location.  As 2020 highlighted, the restrictions on travel meant many people couldn’t physically attend bull sales or seedstock auctions.  This platform gave many people the same capacity to participate.  

It also became obvious to many that attending sales online, either to buy sires or to sell or buy commercial cattle, resulted in huge savings of time and money.  For some people, the time saved in travel opened up greater efficiencies within their own program to do other things before and after a sale.

Other platforms such as Herd Online allow cattle to be listed for sale and are available for potential purchase for a two week period.  Again, the descriptions and images provided are integral to informing producers about the animals and what traits and characteristics are displayed.  

Online listings can save clients time and money to find cattle...

“While there are many advantages, online selling doesn’t mean you or your agent can relax too much!  ”

The additional benefits of online selling, beyond the broader exposure include a reduction in cost of vendors as well as purchasers.  Purchasers can save time by looking online before travelling.  Vendors don’t have to muster and truck cattle to saleyards.  This can create savings in time, reduction in livestock stress during the ale process as well as eliminating additional costs such as yard and transport fees.

While there are many advantages, online selling doesn’t mean you or your agent can relax too much!  

Over time I have heard many people complain their online sales results weren’t what they expected.  It’s common to hear, that “the price was too low”, “no one bid” “it’s not worth the hassle – I can sell them through the yards for the same money” etc...  Some of these are possibly fair points.  However, I don’t think that this is the fault of the process.  Rather I think it underlines the difference between selling and marketing.

In my mind selling is a transaction where someone will buy cattle (often as economically as possible) for their budget.  Most people look for bargains and will try and get them.  And most people are a bit lazy and won’t look too hard!  If they see something that sort of fits, they often buy it so they can get onto their next task! 

Using an online platform to sell cattle does expose cattle to these people.  But you have to remember that your cattle are now competing in a national marketplace.  The audience may be bigger, but if they are just looking to buy, they may not look at everything on offer.  And potentially your cattle may miss out.

That’s the risk of just selling.

Marketing, on the other hand is, in my mind at least, the process of creating awareness and demand for your cattle.  This in turn creates interest and should encourage people to purchase as an informed choice, not just as a lazy “it’ll do” choice but as a purchase of the right option.   

Online platforms are perfect to support marketing.  These platforms give you the chance to tell potential buyers more about your cattle than just breed, age sex and weight.  You can use these as starting points to describe the markets they suit or the roles in a herd they could fill as breeders or trade cattle.  

Online listings open up opportunities for purchasers in any location

While some people are happy just to rest on the AuctionsPlus descriptions for example, the smart producers (and agents) make sure they promote and create awareness of cattle that are due to be marketed.  The capacity to link and share images and websites means there is no excuse not to promote your cattle more – to market them – in order to make the most of both the platform and the article you have prepared.

This year as I build the stock and station agency side of RaynerAg, you can bet I will be marketing my client’s cattle.  I don’t want them just to be sold!  I want the cattle that we have worked to breed and prepare to go to producers, finishers or processors because those buyers knew about them and wanted them!!  That’s my job!  To create the awareness and demand that underpins the sale result.  

I’ll definitely use online platforms this year.  Afterall I have clients across the country looking to buy and sell stock.  But every time I list cattle, I’ll make sure the value of online listing is capitalised on through good promotion and marketing methods.

So, this year when you do plan on your sale methods, ask yourself or your agent if those methods are just selling or are, they marketing?  If you want to talk marketing options, I’m happy to help as well.  Either way, use the tools such as online to their best capacity.  Don’t relax and think online listing is the end of the process.  Instead, it’s the start of connecting with clients who may really want your cattle.  But they won’t buy them if they don’t know about them!