Tender system for selling farm stock

Press, 4 March 1988, Page 22

Tender system for selling farm stock

Selling stock by tender has been introduced |tp Canterbury by Elders Pastoral in an effort to keep down costs to farmers? ! One sale by tender has already been conducted] in i the Culverden area and | numbers are being gath- I ered for another. [ ' Because stock is sold on the farm, farmers do not have to meet the cost of transporting animals [ to auctions, and possibly back again if they are nbt ] sold. Under the tendering [ system, farmers enter! varying lots into the sale; depending on age, sex, weight, and breed. I | The lots, and their des-! criptions, are entered in a catalogue which is sup-' plied to potential buyers.: The buyers are taken! around the farms so they; can inspect each lot and!

mark down the price they are prepared] to pay. 'The farmers are contacted at the end of the day and asked if they are prepared to sell their stock for the highest tender offered for each lot. A total of 17,000 lambs and ewes were entered in the Culverden tender sale. They came from 17 farms and were divided into 64 lots. Successful sales were made for 5500 sheep and further sales are possible. Buyers came from Timaru, Ashburton, Christchurch and North Canterbury and one freezing company was represented. Lighter forward-shorn lambs made $ll to $l3 in the sale, medium export lambs $14.50 to $lB, and heavy lambs sold up to $24. Works grade ewes sold between $8 and $l4.

The district manager of Elders, Mr Shaw Bowron, was pleased with the sale’s results and said more would follow. While the numbers sold were ;not high, it was a different method of selling which gave control to the farmer. “Elders believe in change and? recognise that under these circumstances farmers desire to control sales at the farm gate. ' “We are giving the farmer the 1 opportunity to decide if he will sell his stock before it leaves the property," j said Mr Bowron. [ Buyers from the Culverden sale had made favourable comments about the new selling method, he said, j Elders would still support the traditional auction system, he said.