The economics of buying and selling island stock

Uist crofters are still reeling from the news that Dingwall & Highland Marts Ltd (DHM) has withdrawn auctioneering services from Lochmaddy Mart. 

DHM Managing Director Grant MacPherson told Am Pàipear why the decision to cease operation at Lochmaddy had been made:

“Different factors have led us to this point, including a reduction in the numbers of stock presented for sale, which has led to a reduction in the number of buyers prepared to make the two day trip, and the difficulty of finding suitable auctioneers. Costs have been increasing as revenue has fallen and it is no longer sustainable for us to keep a presence in Uist. Ultimately we are a business and we simply can not afford to subsidise non-profitable parts of our operation.”

The crofters Am Pàipear spoke to said that the fall in stock numbers mirrored a downward trend in prices, an accusation Mr MacPherson refuted:

“There is no doubt that the stock on Uist is first class; the lamb sale at Lochmaddy last year returned some of our highest prices across our marts.  The stock is excellent but the numbers are just not there to allow us to cover our costs.”

Mr MacPherson confirmed the company’s commitment to stock sales in Stornoway and said that the business there was doing well. He pointed to the greater ease of travel, saying buyers could fly in and out the same day rather than risk three days away from their own farms.

The Lochmaddy mart is operated by North Uist and Benbecula Livestock (Marketing) Ltd (NUBLM), the shareholder organisation set up in 1985 to co-ordinate sales in Lochmaddy.

NUBLM Chair Donald Norman MacDonald, Clachan Farms, told Am Pàipear that the company’s Directors had been unanimous in their commitment to ensuring the safe future of the Mart:

“After all the hard work that has been done over the decades, it would be a huge loss to the islands and the economy. It would affect the smaller shareholders as the costs of transport to the mainland could make it unviable. 

“We have excellent stock in the islands and with numbers falling all over the country I think in the future there will be great demand for island stock. 

“We also have a good number of young crofters coming up and it is very important to support them by selling at the local mart which is also a fantastic meeting place for them.”

NUBLM say that alternative auctioneers have been approached, with Shareholders meeting on February 15th to decide the future direction of the Mart.

NUBLM Shareholder Neil MacPherson, Liniclate Township, has played a key role in supporting the Lochmaddy Mart over many years and says the news from DHM is not entirely unexpected:

“I was very saddened to hear the news from Dingwall & Highland Marts, but not greatly surprised. The number of crofters choosing to sell their stock at other venues has increased over the years and that has clearly made it more difficult for the auctioneers to cover their costs.”

“Where to sell stock is, of course, a question of personal choice, but I am afraid it has been a case of ‘use it or lose it’.”

“As to what happens next, we will have to await the outcome of our meeting in early February, when I hope we will have some alternative options to consider. It will then be for shareholders to decide how they want to proceed.”

Local crofter and NUBLM Shareholder Keith MacDonald, Trumisgarry was hopeful of a good outcome:

“Bha coinneamh aig stiuirichean Mart Loch nam Madadh air 10mh den Fhaoilleach agus iad aonaichte oidhirp a dheànamh Mart Loch nam Madadh a chumail fosgailte agus buidhean eile a tharraing a-steach airson sèilichean a chumail. Bha iad gu math dòchasach gun gabhadh seo a dheànamh as na mìosan ri thighinn ann an ùine son fèile uain a chumail mar as àbhaist deireadh an t-sàmhradh seo.” 

In South Uist, the Lochboisdale Mart has avoided the same fate as its North Uist cousin.

The picture in the South end of Uist appears to be very different, where United Auctions reports a roaring trade at Lochboisdale. Director and Chief Auctioneer Donald Young told Am Pàipear:

“The logistical requirements of an island sale certainly don’t make things easy – ferries, additional travel times and costs all have the potential to put buyers off. For us, Uist stock is worth that extra effort. We had eight mainland buyers bidding at Lochboisdale last month and the prices were very good. Our cattle sale in November saw prices easily keep par with mainland sales.”

Asked if United Auctions had any plans to extend their presence in Uist, Mr Young said: “We will always be delighted to sell Uist beasts through our marts. For us, the question of frequency is a question of need; we will always seek to meet demand.”

Mr Young concluded: ‘United Auctions is 100% committed to maintaining our service at Lochboisdale; be assured, we are here for the long run.”

The first NUBLM sale at Lochmaddy Mart saw 1,323 sheep and 383 cattle sold. By 

1988, the numbers had grown, with 5308 sheep and 579 cattle sold. The NUBLM records show how numbers have declined over the years