17 March 2009 - PGG Wrightson's move into the on-line auction space has encouraged nearly 7000 people to log onto the specialist livestock auction trading site Agonline in the first six weeks of operation.

Two transactions totaling $635,000 were completed, each drawing interest from several hundred potential buyers.

PGG Wrightson Group General Manager Customer Services Mike Skilling says Agonline is on track with our initial expectations in spite of the soft market conditions.

"This is a difficult season with the uncertainty surrounding the outlook for the dairy industry in the next 18 months impacting on all sales. We also know it will take time for Agonline to be accepted as an alternative channel for livestock transactions.

"Traffic on the site has been especially pleasing with more than 10,000 hits in the first four weeks, and the completion of two auctions is an excellent achievement especially when one of was for a herd that had been on the market for sometime through traditional sales channels."

Agonline was launched in February by PGG Wrightson as the only specialist livestock auction site that provides forward sale transaction to be completed on-line from initial listing through to payment. The site integrates the experience of PGG Wrightson's national field force of livestock agents with the on-line auction platform. Representatives verify listings and instigate their loading onto www.agonline.co.nz.

At present Agonline is accepting entries only for dairy herds, replacement heifers and calves before moving to introduce beef, sheep, deer and other categories of commercial livestock mid year. Later the site will be expanded to become an e-commerce platform for the rural sector catering for farmers, growers and others in the rural sector.

Analysis of the first month's trading, shows that many farmers are logging on regularly to view what is available. More than 100 users have established watchlists.

"The ability of Agonline to reach a far bigger pool of potential buyers is a factor that should be of benefit to all vendors while the extensive data supplied on each herd in a standardised format allows buyers to make comparisions and choose which herds to physically inspect before bidding," Mr Skilling says.

"Physical inspection by a bidder or their representative is an essential element of the process and we would encourage all bidders to take that step before participating in an auction." Case study 1 Kelvin Ross sold 100 Friesian and Friesian/Jersey cross cows for $950 each on Tuesday 24 February. 370 people logged into the auction and downloaded the herd details. Successful bidders: Andrew and Sharni Moir, sharemilkers in South Otago

"It was a pretty simple process," Kelvin Ross says. "We filled in the form and our livestock representative loaded it onto the site."

The successful buyer was located more than six hours from Mr Ross's farm, located north of Rakaia.

"He probably wouldn't have bothered to inspect our cows if he hadn't seen them listed on Agonline."

Mr Ross expects to use Agonline for the sale of surplus dairy cows next year.

Andrew Moir, of Clydevale, a regular user of online auction websites, is the first buyer to complete a transaction on Agonline.

"It was the easiest process to check out what was on sale and there was no need to muck around going to look at other herds." Having made an initial selection, Mr Moir drove to Rakaia for a detailed inspection before placing a bid.

"I'll more than likely use Agonline next time I want to buy and sell."

Andrew Moir's agent, PGG Wrightson Otago livestock representative Murray Bain says Agonline is really like a new invention.

"I think it's going to be brilliant though it is going to take a little while for farmers to get their heads around it."

"A lot of people are looking at it every night - its better viewing than the 6 o'clock news." Case study 2 400 Friesian, Friesian/Jersey Cross and Jersey cows sold 3 March at $1350 per head. 560 people logged into the auction and downloaded the herd details

Paul Jeffries, PGG Wrightson Manawatu livestock representative says the vendor is keen on the application of computer technology to create on-farm efficiencies and wanted to try Agonline after traditional sales channels had also failed to elicit a sale.

"Agonline gives buyers an opportunity to have a look at details of what is on offer before jumping in a car to have a look. It takes the pressure off buyers and gives them time to make a thorough evaluation."