Livestock auctions industry embraces digital solutions

While digital auctions are not new to the industry, the recent outbreak of foot-andmouth disease and subsequent ban on ‘open-cry’ auctions, forced role players to search for alternative solutions to preserve the transparent pricemaking nature of auctions.

This was according to

Dr Cobus Oberholster, general manager of livestock, properties and auctioneering at BKB.

In an interview with Farmer’s Weekly, he said the coronavirus disease (COVID-19) pandemic and resultant restrictions on auctions had added to the urgency to find an alternative.

This led to a significant increase in the number of farmers who preferred digital auctions.

Oberholster ascribed this to, among other reasons, the threat of an auction being banned at short notice.

He said while the traditional open-cry auctions would remain a part of the livestock industry, in future strict protocols, as set out by the authorities, would have to be implemented when these events were held.

“However, digital auctions will grow exponentially; within the next two to three years, the major proportion of animals in South Africa will be sold via such auctions. There are just too many factors forcing the industry in this direction.”

The market forces propelling the industry towards digital auctions included increasing costs, accessibility from virtually all over the world, and cutting down on travelling expenses to and from auctions.

Digital auctions also significantly reduced the stress levels of animals to be auctioned. Commercial, as