Livestock marketing
The agents involved in the sale and marketing of animals include:
			1. 2. 3. 4.		Producer marketing groups – typically these are producer co-operatives that market livestock on behalf of their members. They are particularly important in the pig sector where eight groups account for about 80% of direct sales to abattoir/processors. Livestock is sold on a deadweight basis. Dealers and buying agents – operate independently or on behalf of specific abattoirs; they assess the stock on farm and arrange for the transport to abattoir, where the livestock are purchased on a deadweight basis. They may also purchase livestock from auction markets. Auction markets – they sell livestock (finished, store and breeding stock) on a liveweight basis. Typically producers are responsible for the transport of livestock to the market and the buyer for the transport from the auction market. Auctions sell stock on a commission basis, typically between 3 to 4% of sale price. In 2006, 23% of cattle, 45% of sheep and less than 1% of pigs were sold through auction. There were 137 operational in Great Britain in 2005. Individual farmers – can make their own private arrangements for the sale and transport of livestock direct to an abattoir (on a deadweight basis) or via livestock markets. Private sale of finished and store stock is increasingly being aided through better communication between buyers and sellers via the internet.
Bio-security and animal welfare
Bio-security and animal welfare are primary concerns within the regulations governing the marketing and transport of animals. The welfare of animals is considered in terms of the five freedoms:
			• • • • •		Freedom from hunger and thirst; Freedom from discomfort; Freedom from pain, injury or disease; Freedom to express normal behaviour; and Freedom from fear and distress.
Legislation sets the standards for all facilities used for bringing animals together and premises must be licensed by a veterinary inspector. Rules are in place governing the responsibility of the market or gathering place for animal welfare, including the number of animals allowed per pen, handling, the separation of species and treatment of unfit arrivals. There are rules about the length of journey times and the provision for feeding and watering animals in stopovers, such as markets. All cattle, sheep and goats must be placed in a six-day standstill when they have been exposed to movement from holding to holding, market to market or likewise. Pigs are subject to a 20-day standstill. Defra Information - On farm animal welfare.
Animal identification, record and movement documents
Both on the farm and during movement all animals have to be identified (there needs to be a continuous flock/herd register) and the movement is controlled through the following means:
					Cattle – Defra approved double ear tags; each animal has passport issued by the British Cattle Movement Service which must be notified of all movements. Sheep – must be tagged or marked before leaving holding or within 12 months of birth; movement must be accompanied by a General Movement Licence (AML1). Pigs – movement to slaughter or another holding requires a Defra herdmark, or a temporary paint mark, depending on the age of the pig, plus a General Movement Licence (AML2). Various methods are approved for marking.
						Defra herdmark (slapmark)
						Source: MLC
		Cattle passport						Eartag
		Source: MLC						Source: MLC
For some years various electronic methods of identification have been tested and these may become mandatory or the commercial norm for all stock in future years. From 2006, veterinary and medicine records (pre and post movement) must accompany all livestock together with a statement that animals are fit to travel. Defra Information - Livestock movements, identification and tracing for cattle, sheep, goats, and pigs.
Transport of stock
Rules are in place to ensure welfare standards during transit, loading and unloading, fitness of the animals to travel and the required features of transport vehicles. From a meat quality point of view it is important that animals are not stressed or bruised during transport (in transit, loading or unloading). This requires the right handling skills to be employed and stock to be loaded in the right densities (i.e. too few and animals can be thrown about during transport, too many and there are dangers from trampling, suffocation, heat stress). All transport must be thoroughly cleaned and disinfected before animals are loaded and again after unloading. Defra information – Animal welfare during transport.
Liveweight selling
Liveweight sales occur at auction markets, farm dispersal sales or sales at fairs. Stock are sold either singly e.g. cattle, or in batches e.g. sheep. The relevant details of the stock to be sold will be announced and buyers will bid for the animals, usually on a per kg basis, through a system of open outcry.
Deadweight selling
Whether farmers sell animals directly to abattoirs or via dealers/agents or buying groups, it is common for the buyer to quote in advance the price per kilogramme that they will be paying in that week for the weight of the cold carcase produced, on a flat rate or a deadweight and grade basis.
				Flat rate – the same price is paid across a broad quality specification; used when stock are purchased in batches. Graded – the price is dependent on the graded carcase quality of the animal (see Carcase Classification section).
Prices will change weekly, depending on supply and demand. Contracts between the suppliers of animals (individual farmers and groups) and abattoirs/processors are common in the pig sector, less so in the cattle and sheep sector. It is rare for these contracts to set future prices. Defra information - Animal welfare at markets.
All animals must be clean and dry before they enter a slaughterhouse; this policy is enforced by the Meat Hygiene Service (MHS). Defra information – Animal welfare at slaughter. Defra information - Clean livestock
For more information: Services, publications and websites MLC Economics - Price Reporting Services Eblex Sheep Better Returns Programme Eblex Beef Better Returns Programme