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All news / New horizons in livestock sales: electronic auctions in Russia

  • 30 May 2024, 09:00

The supply of breeding animals from abroad is declining, which forces Russian companies to look for new ways to sell within the country. In this context, the companies Ekonova and Chebomilk decided to use electronic auctions to sell livestock. This practice, successfully used in the United States, is just beginning to gain momentum in Russia.

Ekonova Group of Companies plans to trade breeding heifers through electronic auctions, expanding its range of activities, which was previously limited to offline transactions through calls and paper contracts. This is a significant step in the development of livestock sales in Russia. Following the example, another large manufacturer, Chebomilk, also plans to introduce the practice of electronic auctions.

Electronic auctions allow participants to transact more efficiently and conveniently, ensuring transparency and competition in the market. The general director of Soyuzmolok emphasizes that this is an innovation for Russian agriculture and can become an important tool for increasing the efficiency of livestock trade.

Ekoniva Group of Companies is one of the largest producers of raw milk in Russia, with more than 235 thousand units of cattle on its balance sheet. Since 2006, the company has been selling breeding animals, and over the past year, sales increased by 21%, reaching 14.8 thousand heifers.

According to the Ministry of Agriculture, the total volume of cattle sales in Russia increased by 19% to 215 thousand head, and electronic auctions could become one of the key factors in this growth. The head of the sales department of the Russian Auction House notes that experience in selling livestock at auctions already exists, and conducting electronic trading is not difficult.

In general, the introduction of electronic auctions for the sale of livestock in Russia opens up new prospects for Russian agricultural producers, providing them with additional sales channels and the opportunity to conduct business more efficiently. It is important to monitor the development of this practice and adapt it to the specifics of the Russian market in order to maximize the benefits of electronic auctions in agriculture.