Livestock agent

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!

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.

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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. 

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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. 

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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

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.