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Auctioneers are the icons and hubs of the agricultural industryWatch top talents in action at a World Livestock Auctioneer Championship quarterfinal in your area. By Martha Ostendorf
"Ninety, now ninety-five; you're in at ninety-five? Do I hear a dollar? Sold, at ninety-five to bidder 317." The auctioneer's chant is well known to anyone whose business resides in the ag sector. But besides being one of the long-standing traditions of the industry, auctioneers play a very important role in all areas of commerce. "The value of almost everything sold is determined by some sort of bidding, or auction market," explains Kristen Hendricks, vice president of membership services for the Livestock Marketing Association. "From real estate to art to commodities, bidding is the method used to find true market value. Without the auction process, no one would know what to charge for their product." With today's markets taking producers on a wild ride, it falls heavily on the auctioneers' shoulders to be able to analyze the current state of the industry and be well informed when they take their seat in the sale ring. It can be argued that the measure of a good auctioneer weighs less on the quality of his chant than on his knowledge of the industry and the product in front of him. "It's up to me to accurately represent the product that I'm selling," says Matt Lowry, the reigning LMA World Livestock Auctioneer Champion. "If I don't correctly interpret the value of the product I'm selling and relay that to the bidders, my consignors will take less for their product. One of the marks of a great auctioneer is product knowledge. The better I represent the product, the more money the seller will earn." In recent years, maintaining product knowledge in the livestock industry has become a far more involved and difficult process for livestock marketers. "The industry has really changed. As auctioneers, we now have to accurately represent a wide variety of vaccination programs, age and source verification programs, natural designations and more," says Lowry. "I have to interpret and communicate the value of these programs from the consignor to the buyers." That's where developing a good relationship with their preferred livestock marketer can give livestock producers a leg up. "Especially now with the nervousness and uncertainty in the industry, it's important to have strong communications between yourself and the auctioneer and auction market," advises Hendricks. "They need to know as much as possible about you and the animals you are consigning." Hendricks says the drop-off and drive-off scenario where cattle are unloaded with little to no communication about their history is a grave mistake on the producer's part. "Form a relationship with the people who are marketing your livestock and get them all the information necessary about the consignment so they can do their job to promote your livestock to the buyers and the rest of the industry," Hendricks says. The changing roles of auctioneers Besides the increase in specialty programs, today's auctioneers tackle some new challenges that their predecessors never faced. From changing technology to consolidated markets, auctioneers-like many others in the ag industry-have been forced to diversify or get out of the business. "In the past 50 years. we've seen significant consolidation of the markets and a decrease in the number of auctioneers. A tremendous number of auctioneers have been forced to diversify their talents and their businesses to include such things as real estate and machinery auctions," says Hendricks. "At the heart and soul of it, what they love doing is selling livestock; it's just an unfortunate reality that there are fewer markets." And those still selling livestock at markets now have to expand their abilities to support video and Internet auction services. "Most auctioneers that we work with are familiar with the changing technology of the industry. They have to be because it is their job to know all of the options available for their consignors and to promote their product to a larger buyer base," says Hendricks. New technologies do change how an auctioneer works, but organizations such as the LMA work to ensure that the basic principles remain the same. "Internet auctions, such as www.LMAauctions.com, are designed with the traditional role of the auctioneer, buyer and consignor in mind. We try to maintain the connection and the tradition of the market," says Hendricks. Bidders watching online can hear and see the auctioneers. And, auctioneers selling to an Internet audience are encouraged to make the online participants feel like they are sitting in the sale ring seat and are an active part of the sale. "There is always banter between auctioneers and the bidders in the seats," Hendricks explains. "Maintaining that same banter with the bidders on the Internet by making sure their bids are noted and pointed out, such as saying 'You're in on the Internet' keeps them in the action and bidding." Hendricks points out that a great addition to many Internet auction programs is the auctioneer's ability to see the names of online bidders and, at any given point, call them out by name or possibly to relate to the bidder that the cattle headed to the ring are just what they said they were in the market for. "It all falls down to the relationship between bidder and auctioneer and the understanding of the market and what their buyers are looking for," Hendricks says. Quarterfinal competitions While auctioneers need to be able to judge a good pen of cattle, producers need to be able to judge a good auctioneer. The Livestock Marketing Association spotlights some of the best auctioneers in the industry with their annual World Livestock Auctioneer Championship competition. Quarterfinal events are currently being held around the nation to qualify auctioneers for the 2009 WLAC finals. Quarterfinals, such as the one held at the Miles City Livestock Commission Co. in Miles City, Mont., in September, qualify eight auctioneers each to advance to the semifinals. Thirty-three of the top auctioneers, including the current International Auctioneer Champion, will compete in Fergus Falls, Minn., June 13 for the 2009 title. The championships and the regional contests are actual livestock sales with buyers in the seats. A panel of market owner and professional livestock dealer judges narrow the field. "The judges look for an auctioneer who can scan the crowd, pick up bids and be clear and understandable," says John Korrey, 2002 World Livestock Auctioneer Champion and industry veteran of Iliff, Colo. "A good auctioneer will move the sale along and not beg, but also not leave any money on the table. They should have a good rhythm and strong product knowledge." Hendricks says that, while the auctioneer chant differs from region to region, it's important that the auctioneer be clear. "Buyers and consignors need to be able to understand what the price is," says Hendricks. "Auctioneers also need to demonstrate an understanding for the industry and the market prices so, as the animals are moving in front of them, they aren't just chanting numbers-they understand why the prices are set where they are." The auctioneering competition is a great way to see both veteran and upcoming talents perform. "The competition is growing; this year we have 125 to 130 contestants and 10 or 11 rookies. The contest is tough," says Korrey. "The auctioneers are doing what they do, but being judged by their peers and not in their home market. They just have to relax and do their job, but that's easier said than done." Newly minted auctioneer Jaxon Allen of Lewistown, Mont., tried his hand for the first time at the Miles City competition. "The experience was good," Allen, an auctioneer with almost two years experience under his belt, says. "Doing these competitions helps get the nerves out. If you can do your job here, you can get along anywhere, and it helps to get your name out. I'll definitely do this again." Putting young auctioneers in contact with veterans is one of many benefits of the competition. "Auctioneers should come to this event for the camaraderie and to better themselves. The only losers are the ones who don't compete," Korrey says. The Miles City contest brought in 31 contestants from 12 states and Canada. It also brought in some interested consignors. Eva and Larry Olson of Malta, Mont., traveled 250 miles with a load of yearling Angus steers to watch the contest. "There definitely are no two auctioneers alike. Some are better, some speak clearer, and that's what I look for. An auctioneer can make some difference in the price and enthusiasm is definitely important," Larry says. Olson typically brings his cattle to market in Miles City. "The Miles City Livestock Commission is a well-run auction. I'm usually happy with how my cattle sell and Rob [Fraser] runs a good sale." Dedication from consignors, such as the Olsons, who are willing to travel to a good marketing facility, can have impacts that reach beyond the sales facility. "The local livestock market can be vital to the rural community they call home because it brings people to town and promotes trade and commerce," says Hendricks. An active and popular marketing facility can bring in a larger customer base for their neighboring businesses. Auctioneers are key to the market discovery process, and it's a profession that requires a bit of artistry backed by solid industry knowledge. "When it comes to the auctioneer champion, we don't just want the chant; we want someone who is well rounded, knows the industry and is a great spokesman-the total package," says Hendricks. "The auctioneer and this contest are perfect examples of the importance of the auction process that the industry runs on. Livestock producers rely on livestock marketers to guide them through the process and we are proud to be a part of that tradition." Hendricks urges everyone with a stake in the livestock industry to come watch some top marketing professionals at work at a quarterfinal competition in their area. For more information on livestock marketing and the 2009 World Livestock Auctioneer Championship quarterfinal competitions, visit the Livestock Marketing Association website at www.lmaweb.com. Martha Ostendorf can be reached by phone at (406) 234-2152 or by e-mail at martha@corralcreekcomm.net. 10/20/08 Date: 10/16/08 Advertisement
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