This
is one post that is long overdue. I
experienced selling cattle myself for the very first time last year. It was very interesting indeed. And selling cattle is always something I look
forward to because its reward for hard work. Consider the following,
DECIDE WHEN TO SELL BY PLANNING
DECIDE WHEN TO SELL BY PLANNING
It
is always smart to see how prices are playing around. Do research on market dynamics and pick the
right time to sell your cattle. Most
auctioneers usually have auction summaries that you can request. I usually
request summaries for the past 3 years and I investigate prices and see when
prices are good roughly. I often speak
to livestock agents in my area. With
that I compare what the agent is saying with my research. i.e I
noticed that oxen prices are usually the highest towards the end of year and
the beginning of year. I saw that from
auction summaries. I than call the
livestock agent and ask him when is the best time to sell oxen with weight of
600kg. A good agent gives great advice.
TRUST YOUR INTUITION
TRUST YOUR INTUITION
I
think this point should be on top. In
this business, trusting your inner gut feeling and being optimistic helps a great
deal. I go to auction knowing that my cattle are worth this amount, and most of
the time, I get that and beyond.
What
then?
After
you have picked a time to sell your cattle, and you feel it’s time to sell you
need to arrange the following.
MOVEMENT
PERMITS
Specifically
a movement permit. This is a document
issued by the VET office which allows you to move cattle from your
establishment to the auction. The permit
is valid for 7 days and has an expiry date.
So you must make sure that the ‘transport process’ is within the dates
stipulated on the permit. On the permit, you will be asked how many cattle you
want to sell, and from which establishment to which auction.
DEPARTURE
The
departure is written in the triplicate departure book. This is a book that can be obtained from any
VET office. On the departure book, information such as permit number, date of
departure and arrival, and eartags of cattle must be completed.
TRANSPORT
COST
If
you do not have your own means of transport, there is a solution. There are people who own trucks and are in
the business of transporting cattle to and from auctions. Look out for this people and get quotations
on their charges. They usually charge
per kilometre (km), or price per head of livestock. If your farm is 100km away from auction
point, and the pricing of truck service N$25/km than transport cost will total
to 100km x N$25/km = N$2500.00 It is important to consider rate (price per
kilo), reputation of the trucking service (some services do not even show up to
pick up your cattle), and how big the truck is.
You can choose to pay in cash after the service, or the trucking service
is paid by the auctioneer and the money deducted from seller after the sale is
complete.
There are deductions that are made.
COMMISSION
TO AUCTIONEER
Commission
on the sale of cattle is payable to the auctioneer for the services
provided. This is 6% on the proceeds of
the sale. This commission is directed
deducted by the auctioneer. If you have
an income of N$ 50 700.00, commission to auctioneer is 6% x N$50 700 = N$
3042.00.
MEATBOARD
LEVY
This
rate is 0.6% deducted by auctioneer.
Once
the cattle have been dropped at the auction pens (before sunset), the
auctioneer staff separate them into different lots/kraals. The day of auction, you can get statement
printed at auctioneer office at pens.
This statement can tell you which lot your cattle have been placed in.
Now,
it is time to sit on the viewing deck.
There you can have conversations with great people and eat lekker braai
vleis while waiting for the presentation of your lot.
Once
all your cattle have been sold, your collect your cheque and invoice at the
office at pens and disappear. If you like, you can arrange with auctioneer to
deposit the money in your bank account.
Simple!
