FarmGate Auctions, Media Release, 18 July 2023
Commercial beef producers will be able to market and sell their cattle through FarmGate Auctions (FarmGate) with verified data backed by genomic testing and on a new digital platform, taking them to next-level marketing and product branding.
The new platform will allow producers to add their biodiversity credentials, emission reduction programs, previous product performance, product branding and transaction data, and then decide how much of this information is passed onto the buyers.
Also, as part of the new digital selling platform producers will be able to assess and list their livestock for sale.
FarmGate has partnered with digital financial platform provider FAME Capital to integrate its payment solution with FarmGate’ solution to mitigate credit risks associated with producers selling livestock and with the auction platform.
FAME Capital will onboard and verify auction buyers, sellers and agents, allowing them to deposit Australian dollars to the FarmGate account. Funds will be held in a settlement account in trust for FarmGate users.
FarmGate Auctions Director and Chairman Richard Norton said the digital platform could fast track the licensing and financial side of the auction and replace the manual processing of paperwork including invoicing.
“This will facilitate the near instant settlement of funds upon completion of a livestock auction and has the potential for automated remittance back to the bank accounts of the sellers, and cascading payments such as levies and fees being automatically settled at the moment of auction completion,” Mr Norton said.
“The FAME Capital and FarmGate partnership can transform how products are traded between buyer and seller in Australian agriculture.
“Farmers currently are price takers, but this technology will allow them to be price makers by allowing producers to control the marketing of their livestock.”
FarmGate General Manager Chanel Gallen said the use of a secure, transparent and compliant platform in an auction would allow buyers and sellers to have confidence in the auction process.
“A key component of FarmGate’s system is vendors can assess their own livestock after completing an online assessment course,” Ms Gallen said.
“The settlement system also protects funds until both buyer and seller agree the livestock are delivered within specification and payments are sent.
“The use of a digital platform would increase the monetary velocity within the rural economy, which is of significant benefit to all participants.
“The reduction in costs, errors and settlement risks would have buoyancy effects on the rural economy.
“Our settlement process, online training material, accredited assessors training and secure payment options have all been designed to give confidence to buyers and a framework for all parties to work within, and benefit from.
“FAME Capital’s regulatory and technology solution integrated with FarmGate’s platform means buyers’ and sellers’ funds will be held in a custody account, protected from buyer, seller and FarmGate credit risk. FarmGate processes the payments.”
Mr Norton said the easy-to-use platform will deliver benefits to the farmer and service businesses without requiring investment or expertise on their part.
“As part of the global market, the platform may allow farmers to add their biodiversity credentials, emission reduction programs, previous product performance, product branding and then decide how much of this information is passed onto the buyers,” he said.
“The DNA testing allows beef producers to order a genomic test for up to 17 traits allowing both the buyer and seller to trade on verified data.
“As a farmer, you can take control of your own marketing with livestock becoming a branded product with genomic, sustainability, carbon and biodiversity credentials.”
Reserve Bank CBDC Pilot Program
Online livestock auction platform FarmGate in partnership with FAME Capital has been selected to be part of a Reserve Bank of Australia pilot program to evaluate the benefits of a central bank-issued digital currency (CBDC) used in settling livestock auctions.
The pilot project involves the Reserve Bank collaborating with the Digital Finance Cooperative Research Centre to explore live demonstrations of use cases for a CBDC in Australia.
The pilot CBDC will be used to settle a small number of livestock auctions within the FarmGate platform, before the pilot project concludes in July 2023.
