When the Calgary Bull Sale connected its auction ring to the internet, it welcomed the world to a 104-year-old tradition.
Working with The Electronic Auction Market, known as TEAM, operated by the Calgary Public Stockyards, the computerized sale allowed potential buyers to bid in real time from anywhere in the world.
“We’re able to do what the system was designed to do, sell to people from around the globe,” said program manager Jason Danard.
It was the fifth on-line specialty event for TEAM. It has been conducting real time internet-based sales for the past two years, selling feeder and finished cattle three times a week through the Calgary stockyards.
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Also helping with the special sales was the livestock photography company, Browarny Photographics. Along with pedigrees and descriptions, Browarny provided colour digital pictures of each bull.
Rather than giving the auctioneer a wink or a nod, bidders could click a mouse to register their offers in a fast-paced sale.
The big challenge was to see if the electronic system could keep up with the auctioneer.
“In some cases it was ahead of the auctioneer,” said Danard.
Another challenge was to ensure the high speed system did not overload and crash in the midst of a snappy, noisy sale.
“Most websites with the kind of traffic we had today would have crashed,” said Brad Peterson of Browarny.
The TEAM website received about one million hits for the three sales on March 4 and 5. Observers and bidders logged on from Canada, the United States, Brazil, Mexico, Australia, New Zealand, Japan, Germany, Belgium, Britain and Russia. About 70 bidders were on-line at any given time.
Three Hereford and three Angus bulls were sold on-line to five buyers.
The system took about a year to design and test. If connections fail or bidders encounter technical problems, the sale can be paused until the situation is corrected.
The Calgary sale has made a three-year commitment to the service.
This type of sale is the next generation of the electronic sales that have been offered through the stockyards for the last 17 years. The old system provided a brief written description of the cattle and had a bidding system through special connections to the Calgary office.
“The old TEAM system served its purpose. It was developed in the late ’70s, and we marketed over two million head through it, but times had changed. The technology was old,” Danard said.
Even with sale disruptions caused by border closures and market uncertainty, people are supporting the computerized system.
“The internet is a powerful thing. It has taken down the barriers to entry into our sale. It has huge buyer support and huge audiences,” he said.
Live cattle volumes at the stockyards dipped from an average 50,000 head a year to only 30,000 for 2003. The internet venue had more buyers and bidders. So far, 3,500 people have registered on the system free of charge.
The system was designed with simplicity in mind so anyone with an internet connection and PC system could join. Users need to use Internet Explorer 4.0+ and must download and install Java 1.3+.
A still picture of the animal offered for sale is provided with a description of its weight, sex and type. Previews are available to buyers.
“The advantage to the buyer is they don’t have to drive around the country bidding on cattle. They can select cattle from anywhere in Western Canada wherever they happen to have a computer and an internet connection,” Danard said.
Sellers do not have to accept bids and all buyers’ names for each lot are revealed at the end of the sale.
Buyers and sellers can also gather real time market analysis and talk with staff at the stockyards about the direction of cattle sales.
The cattle carry less shrink because they are not stressed from being transported to a live ring. They do not leave the farm or feedlot until the buyer takes delivery.
“This will never replace the live auction. The auction market will always be there for the smaller groups and some people who prefer the traditional market,” Danard said.
