AuctionsPlus business development manager, Carly Gaukroger, with Elders Bendigo livestock manager, Nigel Starick. Image – Alex McLaughlin.

A NEW forward-selling model for lambs and mutton had the potential to improve price certainty and volatility for producers and processors, according to one of its early users.

AuctionsPlus today launch Forward+, its new forward-selling model designed to make trading prime livestock simpler and smarter for producers, agents, and processors across Australia.

The product was built in close collaboration with Australia’s processing network and allows prime sheep and lambs – ready for future delivery – to be listed directly on a dedicated offerboard, AuctionsPlus said.

On Forward+, processors submit offers in a confidential, controlled environment, enabling supply certainty, better price discovery and improved planning, the online marketplace said.

AuctionsPlus chief executive officer Wyn Snyman said the launch marked a milestone for the company and the industry.

“This is a turning point for how prime livestock is traded digitally. Forward+ connects agents, producers, and processors in a way that reduces risk, simplifies the process, and delivers real value across the supply chain,” Mr Snyman said.

“In a tight supply environment, securing future livestock deliveries is critical. Forward+ gives processors the ability to act early and plan ahead, while vendors benefit from confidence and clearer pricing signals.”

Up until 19 August, Forward+ had welcomed 15 processors onboard, had 11 lots listed with 15 offers placed and an 83 percent clearance rate.

The first agent to conclude a deal on the format was Elders Bendigo livestock manager Nigel Starick said the ‘blind’ forward contracting platform did not allow other potential buyers see what had been bid on a listed lot.

He said only the seller’s agent was able to see the bids that had been made, and by whom, and the final accepted bid. Processors were only able to make one bid for lots.

“This is only in the clients’ interests.”

Mr Starick said he listed a lot of about 300 lambs for supply four days hence and there was a variance between the first bid and the final accepted bid of 40 cents a kilogram. He stipulated the average carcase weight of the lambs as 34.5kg within a weight range of 20-99kgs and with no penalty over 34kgs.

“At the time we got $11.60/kg when the job was $11.

“As soon as I accept an offer, everyone else gets a notification to say they were unsuccessful,” he said.

“I had lambs making over $500, but it was ones and twos and threes, but for a l=client looking at his kill sheet, he is never going to see that anywhere else.”

He said sellers could set their own timeframe for delivery on Forward+ and any number of lambs could be forward contracted.

“It’s designed to not be like the physical market; it’s designed as a tender system.

“It just think it is an opportunity for the industry to grab onto and use – I really do think there is merit in it and it will make the assessors more accountable at the top end of the job.”

Mr Starick said the platform was good for AuctionsPlus and agents, and help validate the assessments of assessors with processors in the market.

He believed it would have a positive impact on the prices that producers receive, and on price consistency and volatility for producers and processors. Mr Starick said whereas some private agents were aligning themselves with specific processors, Forward+ gave every processors the opportunity to forward bid on lambs and sheep.

“It’s a fair way of doing; it’s just a pure tender system to have the right article put out in front of the right people to tender a price.”

AuctionsPlus said Forward+ was developed following extensive consultation with the processing sector, including major names such as Fletchers, Hardwicks, Greenstock (Woolworths), Midfield, TFI, Gundagai, Woodward Foods, and JBS.

“It was very simple and easy to use.

“From putting them on to accepting and delivering was seamless … I’ll definitely use it again,” Mr Starick said.

Greg Seiler from Nutrien Walsh Hughes, Bourke, has also used Forward+ to successfully sell 5400 heavy wethers.

“It’s a simple, straightforward system that’s genuinely user friendly.

“The feedback from processors has been generally positive. We had numerous offers and could choose trucking dates to fit in with the rest of our livestock program,” Mr Seiler said.

AuctionsPlus general manager-network Paul Holm said the final prices of concluded contracts was not currently being displayed but would be in the future.