NLIS

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!

Buying Livestock Online?

Over the last year or so, I’ve been watching the rapid growth of livestock selling on line.  Now, on line selling is not actually a new concept.  In Australia we have had AuctionsPlus that is the largest online seller of livestock in the country.  AuctionsPlus was preceded by CALM – Computer Aided Livestock Marketing.

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One of the great developments with the online livestock marketing has been the creation of objective terms to describe cattle and sheep.  The language we use to describe fatness and muscle score was a direct outcome from the move to sell livestock objectively, and more importantly digitally.

So to me, on line marketing of livestock is a standout for the agricultural industry.

I guess I’m not the only one to be excited by the opportunities that on line selling offers.  After all it’s a very inexpensive way to advertise.  You can advertise with pictures as well as written descriptions.  And now with the creation of Internet sites like Gum Tree, you can pretty much buy and sell anything!

At the same time, you only need to browse through Facebook to see any number of pages that range from “Buy, Sell or Swap” to specific pages selling livestock.  Now, I guess that’s not necessarily a bad thing.  At the end of the day, it’s a way for people to sell livestock in a manner that works best for them.  It also means you might find an opportunity to purchase something you’ve been looking for.

But just because you are selling or buying through Facebook or Gum Tree, you still have to ensure you comply with the legislation that exists around livestock sales and movements. 

This means you need to ensure that you comply with the NLIS requirements.  So if you are buying animals, you will need to ensure that the animals are transferred on the NLIS database to your PIC.  If you are selling you have to make sure the animals are tagged with an approved NLIS tag and that you also must complete a current National Vendor Declaration (NVD).  Remember the NVD can be used as your Transported Stock Statement. 

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These points are important to remember, particularly if you are a small or new producer.  However your animals are part of the industry, and so traceability is just as important regardless of buying on line from a Facebook page or through the sale yard system.  And in regards to transported stock statements, the legislation means police or stock inspectors have a duty to ask for yours.  So don’t get caught!

The other part of buying on line from various sites is for you to ensure you consider the risks to your business.  In the first instance you need to consider the usual issues of biosecurity. So think about quarantining new livestock to minimize the spread of weeds or parasites. 

I’d also think its pretty important you do your homework on just what it is that you are buying.  In the Auctions Plus system, you have the assurance that an accredited assessor describes all animals.  You can check their status, and if the animals don’t meet the description you can speak to Auctions Plus about the issue.  

In generic sales pages, you won’t have that fall back.  You really are making a choice to accept another person’s description.  So if the animal isn’t what you expect, is lighter, heavier, more stirry than you expected, you have no comeback.  That’s part of buyer beware and I guess it applies to any purchases we make.  But it’s important that you do the risk assessment first, cover all the options and then you can at least feel you’ve done as much as you can.

I reckon on line selling in all their forms, are going to be part of how we do business into the future.  So why not make the most of the opportunities.  Just don’t let the convenience of looking on line become complacency or laziness! If you do your homework and make sure you meet your obligations for identification, traceability and movement restrictions, then I reckon the online world can be another tool in your business toolbox.  

Why we need the NLIS

A few days ago I was chatting with a beef producer from Northern NSW about my recent overseas trips to China and Malaysia.  He was very interested in the work I was doing with supply chains in Malaysia. However he was much more interested in my take on the Chinese expectations for food to be safe and healthy.

As we talked about my experiences, he asked me what I thought about criticisms of the National Livestock Identification System (NLIS).  I reckon I should share my response to that question.  The NLIS is absolutely essential to our industry and essential for any beef producer serious about their business.

I have to admit I feel so incredibly frustrated when I hear claims of how much NLIS costs individual producers, what a burden it is, and how it achieves nothing. 

Our industry has so many unique advantages.  We have an international reputation for the safety of our food; the quality of our food and the reliability of our supply chains.  As I've said before, this reputation has been earned, but is underpinned by our ability to trace and prove our cattle are exactly what we claim them to be.  

We export to over 140 countries.   Without our ability to prove our integrity of supply and safety, plenty of those countries wouldn't buy our product.  There are other countries who want to take our share of these markets.  They can probably do it more cheaply than we can.  Yet we keep that share because consumers value safety and health when it comes to their food.  

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I reckon if we lost a few export markets the flow on effect to farm gate prices would be significant.  So at that level NLIS is essential.

So how much does NLIS cost an individual?  I spent a little time looking at the NLIS tag costs on line.  The price per tag ranged from $2.70 to $3.50

Now some people will instantly multiply these figures by the number of animals they own and tell me the cost is crippling them. Instead of arguing next time I'm going to ask what is their actual Cost of Production for a kilogram of beef. 

The last time I did that, the person didn't know.  If you know your Cost of Production you can start to hone in on costs, like NLIS.

A couple of years ago I had a producer show me their figures for their Cost of Production per kilogram.  

They spent: * 0.6c on animal health

* 3.2c on Drench 

*7.5c on commission

*14.7c on Fertiliser

Their NLIS cost was 0.8c. This operation was an EU Accredited operation and had over 3300 cows. All of these had NLIS tags, yet the cost of this was less than a cent per kilogram of beef!   

For producers who use NLIS in most basic form, to transfer sale cattle off their property, the cost per kilogram of beef is much lower than 0.8c

For the producers I work with, minimising costs is one thing.  However we know costs only account for 20% of the variation in an enterprises Cost of Production figures.  The kilograms of beef produced per hectare accounts for 80% of the variation.  If you are serious about becoming more profitable, you are much better off focussing on improved production.

In this case NLIS is a vital tool to record and monitor the essential parts of your herds production.  I reckon if you can't identify a cow which hasn't or doesn't calve every 12 months you are already losing kilograms of beef per hectare.  If you can't monitor growth rates to a target market specification, you are potentially missing the full grid price for your cattle.  If you can't identify the calves of the sire you spent $4000, can you tell if those genetics are taking your enterprise in the right direction?

I'm passionate about helping producers achieve their goals for production and profitability.  If we can't measure how we are going, we can't manage what we are doing, and we won't achieve those goals.  

So I reckon if you are really serious about making money in beef production, NLIS is essential to you and to the industry.