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NEWSLETTER 6: JANUARY 2016 : WILDLIFE AUCTION - TRANSACTION

by Jannie Parsons

Prices at wildlife auction transactions sometimes differ so much that it is difficult to put two and two together. Why will one buffalo cost R200 000 and the next R1 000 000? The short answer is: Horn length, age, genetics, pedigree of the animal and what actions the buyer and seller will take to reach their target.

A transaction consist of several components but mainly five components that will play a role in the final price, namely:

  1. The genetics and pedigree of the animal especially compared to other animals in the same herd, born at the same time.
  2. The true and accurate statistics of horn lengths, age, details of the mother, father and grandparents.
  3. The quality of marketing, representation and whether the buyers will believe what they see, hear and experience.
  4. The situation (time and occasion) and the reaction of the attendees on the specific day of the auction.
  5. The tax status of the buyer, e.g. fulltime farmer versus part-time farmer.

 

TIPS:

  1. Be extremely careful of ±(estimates) of horn lengths and specifically estimates around the animals age without registered date of birth.
  2. Ask yourself this question: If the horns were just 5% shorter and the age of the animal just 10% older that the given statistics would you still buy for the same price or with what % will you lower your price?
  3. After being at an auction for 3 hours and with 100 lots down the line, you get the feeling people are tired, not concentrating well and even get bored if not interested in a specific lot. This is when buyers will mostly look at HORN LENGHTS and when you can either buy a great deal or pay way too much.
  4. Always attend an auction with options and not with a big plan. Too often it happens that another man will interfere with your plan turning it into a battle of egos. Rather set your sight on another option (animal or lot).
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