Livestock marts have made a vital contribution to the economy in towns all around Ireland for over half a century. We caught up with Ray Doyle, secretary of the National Marts Committee of the Irish Co-operative Organisation Society (ICOS) to discuss the ongoing battle to ensure that these marts remain open and continue to serve not just farmers but the wider community.

The Irish Co-operative Organisation Society (ICOS) – which was formed in 1894, one year after legislation governing co-ops in Ireland was enacted into law – is a co-operative umbrella organisation that serves and promotes commercial co-operative businesses and enterprise across multiple sections of the Irish economy. ICOS member co-operatives and their associated companies collectively boast over 150,000 individual members, employ in excess of 12,000 people in Ireland (plus a further 24,000 abroad) and have a combined turnover of €10 billion.

Starting from agriculture co-op roots, following the vision founding President Sir Horace Plunkett, ICOS has evolved to serve the co-operative sector in seven core categories: multipurpose dairy co-ops; livestock sector co-ops; store, trade and wholesale co-ops; service-related co-ops; community-oriented, culture and leisure co-ops; food, fishing and beverage co-ops; and advisory and education-related co-ops.

Ireland’s livestock mart sector today consists of over 60 co-operative mart centres across the country. Marts provide many services to farmer shareholders in addition to the primary function of a transparent method of selling and guaranteeing payment for livestock. Several marts have diversified their service offers  into property sales, SFP entitlement trading, valuations, NCT centres and retail centres etc.

Together with livestock co-operative marts, there are over 40 Breed Societies covering cattle, sheep and horses. Such societies help promote their breeds, safeguard their long-term development efforts and educate the buying public on the economic and social attributes of their breed.

In total, there are over 100 livestock-related co-ops in Ireland, covering many aspects of the supply chain, e.g. breeding and genetics, animal health, livestock sales and livestock marketing. Over one million cattle are sold in Ireland every year in co-operative livestock marts, with 90% of Irish beef exported to more than 50 countries worldwide. 70% of Irish sheep meat is also exported, the main export markets being the UK and France.

ICOS plays an inherent role in Ireland’s agricultural and commercial life. It is the leading organisation for registering new co-ops in Ireland and the foremost authority on co-op rules and governance, with members and their associated companies generating €12 billion in sales per annum.

Ray Doyle – who doubles up as a tillage and cattle farmer in Ballymore Eustace, County Kildare (having purchased land there in 1994) – has been secretary of ICOS’ twelve-strong National Marts Committee for the past eight years. “Livestock marts and dairy co-ops make up the bulk of our members,” he notes. “We have 130 members at present, representing all the co-ops from Glanbia and Kerry Co-op to small group water schemes.”

There are a number of challenges facing Irish livestock marts today. One of the most harmful conditions currently prevalent is QPS bonus which is not paid to farmers if their animals have been traded within the last 70 days or have more than 4 farm residencies in total. There is no scientifically-based animal welfare or meat quality rationale for the imposition of this movement restriction, which has the effect of distorting free trade; it is 100% anti-mart and something that needs to be addressed.

Unguaranteed and unprotected internet sales represent another major threat. “DoneDeal is having an effect on the marts, which are being bypassed with certain category types and this is a challenge for us,” Ray agrees. “We are currently trying to develop internet sales based platform around the livestock marts, which offer the only true way of gauging animal value as there is a transparent auction process.

“The biggest advantage for farmers in dealing with their local co-operative livestock mart is that we are regulated by the Property Services Regulatory Authority and you are guaranteed payment for your livestock. Also farmers buying livestock can rely on the conditions of the Sale of Goods and Supply of Services Act which ensures animals must be fit for purpose. The classic example is the in-calf heifer – the seller has to refund the buyer if an animal subsequently turns up in calf because the farmer wanted to slaughter this animal not breed from it. Getting a refund if you’ve bought using internet sales platforms can be very difficult.

While numbers aren’t down, potential growth had been stymied. Over the past ten-twelve years, cattle throughput at livestock marts has fluctuated within a couple of percentage points of 1.7m; meanwhile, the amount of cattle traded privately has doubled from 500,000 to 1m during the same period – a potential loss of half a million cattle to livestock marts and the towns in which they are located.

“One of the reasons farmers give for not supporting the marts is that they don’t have time. I’m not really sure how they can’t devote a bit of time, which for some farmers might be only once a year  to getting the best money for their livestock. You’d imagine that would be a priority. But we feel that internet sales through the marts can help farmers who are under pressure and genuinely don’t have time to attend in person.

“Mayo / Sligo Co-operative, based in Ballina already have internet sales up and running and I would be hopeful that we’ll see more marts embracing it over the next six months or so in conjunction with their live buying.

“The mart is the best way to measure the true value of livestock, which secondary markets don’t do. The guarantee is another one of the factors that some farmers have overlooked. Perhaps farmers have taken it for granted that the local mart will always be there, but that won’t necessarily be the case if they are not supported.

“Personally, I am completely confident that the marts will still be here in another 50 years. Having said that, there are parts of the country where there are too many mart centres competing with one another. I’m not saying we should close any of them down but there is certainly a case for amalgamating some of them, as has already been done successfully with Nenagh, Birr and Roscrea. I suppose in a way, it’s like closing a GAA club and there’s a parochial element to the marts – and great merit in that – but there is also a lot of merit in maximising your economies of scale and getting the best value for everybody.”

In terms of generating money and employment in towns, livestock marts are of massive importance. “Marts are generally in county towns and traditionally were the only way to bring in revenue to those towns. They underpinned businesses there because farmers came in for the day and did a bit of shopping as well. The 1.7m  cattle traded annually  equates to a turnover of almost  €1.4bl in rural economies spread throughout the country from Malin Head to Mizen Head every year.”

Of course, it’s not all doom and gloom. Generally speaking, marts in Ireland remain a resounding success story, one which has mushroomed since the first auction marts started in Cork, Waterford and Kilkenny almost 60 years ago to become an intrinsic part of Irish life.

“Figures are steady and – despite the aforementioned threats – we are not going backwards, which is a real positive. The marts remain profitable because they are still there providing farmers with vital services: valuation of livestock, a market for that livestock, guaranteed payment and a great meeting place for farmers to meet, talk and trade.”

Taken from Irish Tractor & Agri magazine Vol 3 No 10, November 2015

ICOS, National Marts Committee