Auction marts left owed thousands by cull ewe buyers
© Adobe Stock A number of auction markets in the north of England have been caught up in an ongoing bidding war between a handful of major cull ewe buyers operating in the region.
Strong demand for cull ewes has sparked fierce competition among buyers, but delayed payments have left some auction markets facing a substantial financial risk.
Several industry sources have told Farmers Weekly that at least one prominent sheep buyer has built up large outstanding balances with auction marts before delaying payment, putting pressure on market cashflows.
See also: Cull ewe trade lifts ahead of Ramadan
One source claimed that “hundreds of thousands of pounds was left owed to individual markets”, while another industry insider said some of the larger sites were owed “several millions”.
Auction markets typically determine their own credit arrangements and terms of business with buyers, with terms varying between businesses.
A limited pool of buyers has forced several auctioneers to reluctantly extend existing credit terms in order to retain key customers.
However, as debts continue to rise, some auctioneers have resorted to refusing bids from certain buyers until their outstanding balances are settled.
Overbidding
Buyers have also reportedly been paying over the odds for cull ewes on occasion in an attempt to outbid competitors and increase their own market share.
An industry insider said that the situation had been exacerbated by strong cull ewe prices, resulting in larger sums of money changing hands and increasing the amount of credit risk for auction markets.
Key religious festivals such as Ramadan have supported cull ewe prices so far in 2026, although the trade has eased back slightly in recent weeks.
Cull ewes have been trading at roughly £130 a head at auction marts in England and Wales in the past week, according to figures from the Livestock Auctioneers Association.
Farmers Weekly is keen to learn more. Email charlie.reeve@markallengroup.com if you have any further information.