Despite a decline in the number of both prime and store livestock sold by Scottish auctioneers last year, the total value rose by £8.6m to nearly £379m as a result of improved cattle prices.

Reporting the figures to a gathering of the farming press in Edinburgh yesterday, Jack Clark, the president of the Institute of Auctioneers and Appraisers in Scotland, expressed his concern at the decline in breeding sheep and cattle numbers that was affecting auction throughput.

Pointing out that the Single Farm Payment is not enough to encourage farmers to maintain breeding cattle and sheep numbers in the hills, he said: "Some of our members believe that production subsidies will need to be re-introduced to maintain beef herds on marginal land. We need a mechanism to keep breeding stock in the hills. That's also very important for the environment".

Throughput of prime cattle and Over Thirty Months (OTM) cattle fell by nearly 8000 head, while store and dairy cattle fell by nearly 4500 head despite an increase in herd dispersals. "Suckler herd dispersals are beginning to tail off, while store cattle numbers through the auction rings are increasing as a result of the current store trade. Private sales often only involve one bidder. You can't beat the competitive nature of the auction system to find the true value of the stock," he added.

Scotland is well represented by 15 weekly marts, as well as other seasonal centres. With the financial pressure imposed on the farming industry the competitive pricing structure that the auction system provides is essential to maintain farm income.

On a brighter note, prime and store cattle values had risen since the resumption of beef exports, while cast cows had also increased appreciably in value, putting more money back into farmers' hands to fund purchases of breeding replacements.

"Breeding replacements are in short supply. More people are becoming self-sufficient and breeding their own replacements. That also avoids the risk of buying in TB".

Sheep numbers through the auction rings also fell, and whilst there was a slight increase in the average price per head, it was not enough to prevent a fall in overall turnover of £1.3m. Despite the decline in the number of breeding ewes, nearly 3000 more rams were sold at auction.

As the auctioneer's figures are for the year ending December 31, they may conceal an unusual anomaly that has developed this winter. "We reckon there's a bigger carryover of hoggets (lambs that have been over-wintered) this year. Sheep didn't thrive during the unusually wet winter months and prices have been poor, encouraging farmers to hold onto sheep in the hope of improving prices."