Mart time
he livestock mart sector in Ireland is 70 years old this year and it still plays a crucial role in the agricultural industry, providing numerous advantages for both primary producers and, ultimately, meat purchasers alike. The marts’ key service as central hubs where livestock are bought and sold, facilitating economic transactions in a secure, guaranteed fashion, and fostering growth within the industry is still as important today as during the 1950s when they started.
Pivotal
Covid-19, ironically, was one of the pivotal moments of positive change within the livestock marts in Ireland, as the key advantage of livestock marts is their role in price discovery and the independence of the auction ring. The advent of digital platforms and online auctions has revolutionised the way livestock trading is conducted. Farmers and traders can now buy and sell livestock online, enabling them to reach a wider market and streamline the trading process. Online platforms offer transparency, convenience, and efficiency, leading to improved price transparency and reduced transaction costs.
Balance of power
By bringing together numerous buyers and sellers in one location, the marts enable impartial and competitive pricing based on supply and demand dynamics, which have been beneficial to farmers, especially over the last three or four years whereby the balance of power has become more neutral compared to the pre-Covid era where the large meat processors and retailers had the upper hand. Producers receive fair market value for their livestock, and can always refuse the final bid if they want to try the mart another day, while buyers can access a wide range of options to meet their specific needs. This is now very evident for certain types of factory stock that buyers can now bid on remotely through the various software companies that supply the livestock marts.
Although farmers can and do trade their livestock privately the most recent prices achieved in the local mart continues to be the reference for these trades and while this may be convenient for farmers, they don’t have the security of payment that dealing with a fully licensed and Property Services Regulatory Authority (PSRA)-compliant mart ensures. Additionally, farmers that bring their livestock to their local mart offer producers access to a broader customer base beyond their local area. Farmers that trade their animals in their local or regional mart can reach buyers from different geographical regions and tap into new market opportunities. This expanded market access not only increases sales potential for farmers but also fosters competition among buyers, leading to better prices for producers and more choices for buyers.
Social service
Marts also provide a service that you can’t put a price on but has immense value. They facilitate important social interaction and networking opportunities where producers, neighbours, buyers, industry stakeholders, and experts can interact, share knowledge, exchange information and simply have a chat. These social interactions facilitate helping others, learning, collaboration, and the dissemination of best practices within the agricultural community.
Economic development
Your local mart also contributes to local and regional economic development. It helps to generate employment opportunities, support ancillary industries, and drive economic growth in rural areas. It facilitates a combined rural Ireland turnover of over €2bn, which flows back into the local economy, bolstering businesses and infrastructure in the surrounding communities. This creates a ripple effect throughout the economy, stimulating demand for goods and services such as transportation, feed supply, veterinary care, and equipment manufacturing. Moreover, the revenue generated from livestock sales at markets flows back into the local economy, bolstering businesses and infrastructure in the surrounding communities.
Vital for the ecosystem
In conclusion, livestock markets play a vital role in the agricultural ecosystem, offering a wide range of advantages that benefit producers, consumers, and the industry as a whole. From price discovery and market efficiency to risk management and quality assurance, the marts serve as dynamic hubs of activity that drive innovation, promote sustainability, and foster economic prosperity. By leveraging the benefits of livestock markets, stakeholders can enhance their competitiveness, mitigate risks, and contribute to the growth and resilience of the livestock sector.