Best value is at Aberdeen & Northern Marts

The new year presents some big challenges but also some exciting opportunities at Aberdeen & Northern Marts (ANM), the major cooperative and auctioneering business based at Thainstone, outside Inverurie. ANM spoke to their Chief Executive, Grant Rogerson, about the challenges being faced and opportunities ahead in 2023.

Grant, thanks for taking the time to join us. What kind of year has ANM had in 2022?

I am very pleased we have seen overall rising throughput in our live auction rings, and generally strong values in livestock particularly. There has been some variation across the business, however the general story is a positive one, with increasing recognition that our services and co-operative model provides value for our members and customers.

Despite the continuing high level of change across the rural economy, are you convinced that the live auction ring remains central to the best interests of buyers and sellers?

Totally. With industry leading commission rates, our sale rings are undoubtedly the best and most efficient way of establishing true market value for all classes of stock. So often we hear of sellers signing up to direct contracts for their livestock and then further down the line they regret their decision when they see the true value in the auction ring. These contracts serve only to allow the multiples to manipulate the price down whereas we work always to drive the price up. Take for example cast cows-over the past year, due entirely to the competitive nature of our Thursday sale farmers have seen their returns increase by £253 per head or 23.4% with 39.1% more cows being sold. Would this have happened outside the auction system? I will let you draw your own conclusions on that one. Our system is also efficient, allowing buyers who can come to our centres and buy a lorry load of stock as opposed to having to chase all around the countryside sourcing with multiple pick-ups.

Commission rates at Thainstone do seem to be considerably lower than elsewhere, what is it about your operation that makes that differential possible?

I think it’s two things - the co-operative ownership of ANM, and our ability to bring the volume of stock and big numbers of buyers together to create an efficient and competitive bidding environment.

The co-operative ownership model means that it’s in our DNA to work in the best interests of our members. The support of the co-operative is ultimately there for their benefit, and we provide them with industry leading commission rates and other benefits, which we’ve aimed to do since our foundation 150 years ago. We don’t have external investors to take the profit - every penny of any surplus is reinvested in the business for the benefit of our members.

We’ve also shown our ability to attract the best livestock, and more sellers than ever before, not least because of our incredibly successful online auction portal. At many sales we have attracted a very healthy attendance round the ring, as well as online. That high level of interest, exposing consigners stock to a wider audience, ensures that we maximise value for them.

So many businesses are feeling the pain of energy and other spiralling costs, that must be something that you are experiencing? How are you responding?

Absolutely, input cost inflation is probably one of the biggest challenges we face. Our energy costs are over 150% higher than a year ago, however, this figure will rise again significantly in April when the government support reduces, which will be no different to many others who are high users. We’ve seen unprecedented increases in costs, but we’ve been working hard and efficiently to provide the same levels of fully integrated services to support our members and customers, including advice on maximising value, stock drop off, handling and lotting, lairage and rest facilities and payment on the day of sale.

In times like these, the co-operative model comes into its own with our diverse business and strong balance sheet providing stability and strength. However, it is a challenging time for all businesses. In the current climate we are doing what we can to absorb and resist the relentless upward pressure on our costs and to date we have managed to do this, with the exception of only minor adjustments to members benefits. Like all businesses, we will be monitoring this closely.

Why are Marts important to the local rural economies and what value do they bring?

Marts are so much more than simply a trading outlet, they offer fully integrated valuable services from stock drop off right through to receiving payment allowing a hassle-free experience, and consigners receiving the best possible value for stock on the day. It is important to bring buyers together, physically to marts as well as via online bidding platforms to maintain a steady healthy market. In Scotland and in particular our corner of the world, our farmers are proud to produce exceptionally high-quality produce and farmers should be rewarded with the most competitive value for their stock. As well as the value that Marts offer, when attending sales there is also the opportunity to socialise with like-minded people allowing the rural community to come to together. In fact at one of our recent Friday sales we had a yard full of stock and two sale rings packed with customers resulting in an electrifying trade and a real buzz going through the Mart. Farming is fast becoming a very lonely business and this social networking with like-minded others is a crucial part of society and is easily provided by spending a couple of hours at the Mart.

We encourage members and customers to get in touch with your local fieldperson or auctioneer, or contact our team on 01467 623700.