Bidder's Paradise!

Livestock is in the ring with buyers surrounding and making bid

In the agriculture industry, when a farmer/rancher's livestock herd need to be sold for a profit, it is most often that they will take their livestock to the Auction Market. An auction market is a system in which buyers enter competitive bids and sellers enter competitive offers simultaneously. The buyers compete by bidding with money value, often in a dollars/ pound ($/lbs)ratio. Whichever buyer has the highest bid, is classified as the owner of that particular head of livestock. Many farmers link private sales directly off of their farm, meaning that the livestock is sold to the private buyer and the sale is negotiated through only the personal buyer and seller. Each town or city usually has an auction mart available for livestock producers, but a producer can sell their livestock at any auction mart they choose, as long as the auction mart is equipped for that particular type of livestock, and as long as each of the animal's have a manifest filled out. A manifest must be filled out and signed by the seller, addressed to the auction mart in which he/she chooses to sell through. The manifest insures that the livestock were transported safely by the driver of the livestock load, as well it creates traceability back to where the animals came from. Before the driver of the livestock is allowed to start the vehicle, they must ensure that each head of livestock has a proper manifest filled out for them. It is illegal to transport livestock in which are going to either the auction market or to a private auction without a manifest. The manifest also ensures that the livestock made it to their destination safely.     

Livestock Manifest 

Before an animal can be sold in an auction mart, they must be tagged, branded, or tattooed with the farm symbol of their previous home. The reason for this is to ensure that the animal has proper traceability for health reasons, and is being sold legally from the correct seller. It has recently become law in the cattle industry that every head of cattle must have an RFID button, showing traceability, health, and determining which farm they originated on when being sold at the auction mart. A seller has the option to choose 1-1 million head of livestock, the larger the number of head, the longer in advance the seller has to book a spot to sell in the auction. Most auction market's only have a sale day once every work, so both buyers and sellers need to be aware of that date in order to attend the sale, as well as book as spot. Often, a buyer is not there strictly to purchase livestock for him/herself, they may be sent in by larger companies or organizations. When a bidder has made the decision on which livestock he/she would like to purchase, they must raise their bidding card or their hand, to let the bid watcher know that they would like to proceed further on with the bidding of the sale. The highest bidder wins! 

 Cattle Feedlots also send in buyers to the auction market, these buyers are in search of beef steers. The feedlot owner feeds the beef steers on the feedlot, causing them to gain more weight up to a certain size which is desired for the proper cuts of meat. Once the animal is of desired size, large companies and corporations will buy the beef steer off of the feedlot for their own use. This means that cattle that are raised on a farm, are then sold in an auction market to buyers from feedlot. Once these animals are of weight, the animal then gets butchered and sold to a larger corporation which sells to the consumers of the world. 

Certain auction markets allow only certain types of livestock. Often, auction markets with a large amount of space, in a well known region offer auctions with more types of livestock. Auction marts with a small livestock holding capacity often only sell the main and most popular types of livestock. Auction markets are also great supporters of the community. For three years out of my eight years in 4-H, the Rimbey Auction Market has been a purchaser of my steer. No, they don't keep my steer's meat for themselves, they simply purchase my steer for $1.00 or more higher than the going rate at the auction market, in support of the 4-H club, and as a thank you to my father and grandfather for doing business with them. Then, they resell my steer on sale day at the auction market, making no profit on the steer.  I think it's incredible to see such a large business finding ways to support its clients. Ever since I was age 3, I loved attending the cattle auctions at the Rimbey Auction Mart. There were always two cats lurking the stands, waiting for someone to play with them. While my dad and grandpa were out back unloading the cattle and preparing for the sale, I would sit in the warmth of the stands and play with the two cats, one orange and one grey. This made my trip to the auction mart very enjoyable, often every week that I went! 

Every auction market has a certain number of important staff members. As the sale is going on, a auctioneer, known as the man/woman that runs the sale, continuously keeps the price of the livestock increasing, due to the number and amount of bids that are made for that particular animal. There are also auction mart marshals, their main job is to keep the sale running smoothly, safely, and legally. If a marshal catches an illegal action, they have the right to give a ticket to the accused. Three years ago, my father was hauling cattle into the auction mart, and he got stopped by the marshal. A law had been made that all stock trailers must have straw or rubber matting on the floor, to protect and comfort the livestock. Apparently my dad had not had enough time to install rubber mats into the brand new trailer, and because of this, he could have been fined. Since it was his first offence, he was let off with a warning! 

Man in the center of the photo is the Auctioneer

Farm Clearance Sale 

In order for livestock producers to make a profit, they must sell their livestock in a sale at the auction market, or arrange a private sale. Not only do auction markets sell livestock, ranchers and farmers who want to sell out their farm can book the auctioneer to come sell their farm or ranch. This is often called a farm clearance sale. During a farm sale, livestock, machinery, equipment, and land is often sold. Auction markets are a huge part of the agriculture industry, because they transfer the livestock from the producer to the consumer, allowing the producer to make a profit and the consumer to have a meal! 
Here is a great link about available auction markets and livestock producers in and around Alberta: 
http://albertabeef.org/
Enjoy :)

-Jess