Australian beef can be marketed and sold using various arrangements. All selling methods should comply with food by-laws as specified by agriculture.gov.au BSE food safety requirements and the NLIS online sales guide by the Department of Primary Industries.
Available Selling Routines for Beef Products
Marketers choose a selling method according to its fitness for the purpose and its cost effectiveness. It should be noted that the cheapest strategy does not always guarantee a higher profit.
- Meat Standards Australia (MSA) marketing – this approach uses MSA-licensed stockyards to market and sell livestock.
- Stockyard auction – most cattle are sold through this method. Buyers submit their bids in an auction with the top valuation carrying the day. Prices are in cents per kg or dollars per head.
- Paddock sales – stock is marketed and sold straight from the ranch.
- Saleyard selling – animals in a stockyard are appraised and grouped for sale depending on age, weight, etc.
- Over the hooks (OTH) sales – animals are dispatched straight to the slaughter yard where the ensuing transactions take place. Terms of sale such as carcass weight are dependent on the abattoir. However, all AUSMEAT-accredited abattoirs must pay on hot weight. Typically the producer caters for transport and transaction fees.
- AuctionsPlus – an online auction platform that began during the 80’s as Computer-Aided Livestock Marketing to market stock by description. For authenticity, animals are appraised by an accredited assessor. Transport costs are usually paid by the buyers while AuctionsPlus provides transit insurance.
- Online marketing – includes various online classifieds, websites, and social medias that don’t charge agent, stockyard or platform fees.
- Forward contracts – a binding arrangement allowing a supplier to sell beef products to a buyer at a set price for a specified number of days.
- Alliances – bring together individuals involved in the beef supply chain to ensure consistent and quality beef production.
- Producers may also sell beef products directly to customers.