PSRA urges marts to end credit sales, adopt 'pay on the day'
Cattle marts have been "strongly encouraged" to cease the tradition of providing credit and introduce ‘pay on the day’ practices.
This caution was sounded by the Property Services Regulatory Authority (PSRA).
Most farmers buying cattle at a mart pay on the day of purchase and before the cattle leave the mart.
However, there are some buyers who buy cattle on a 'buy now pay later' basis.
This credit provided by marts has led to difficulties in the past when not repaid on time or, in some cases, not been repaid at all.
Prices surged
The problem of marts providing credit came to light last year when cattle prices surged and the value of a load of cattle increased significantly.
Around this time, many marts started clamping down considerably on providing credit.
However, in some cases, the reality is that this practice is still common.
Weanling exports
After it was confirmed that one of the key export outlets for Irish weanlings had "temporarily closed", the issue of marts providing credit again became a talking point among cattle buyers in the industry.
Some mart managers told Agriland that Irish-based weanling exporters have significantly reduced their buying activity since the temporary closure was announced.
However, most mart managers said they remained hopeful that markets will be found for these weanlings and that buying activity would shortly return to normal.
Responding to questions by Agriland, the PSRA said in a statement that it "does not comment on individual marts" adding that "the provision of credit by marts is a business decision for individual marts and the PSRA cannot instruct them in this regard".
"However, where a mart provides credit, strict credit policies should be implemented in relation to any credit provided, ensuring that the mart receives any monies owing in a timely manner."
"The PRSA also stated that marts providing credit should ensure that they complied with the Property Services (Regulation) Act 2011 (Client Moneys) Regulations 2012.
"In recent years the PSRA formed a mart forum where we engage directly with representatives from the Mart Sector, the statement said.
"The importance of complying with Client Monies Regulations is a standing item on the agenda at all meetings of this forum."
