Anger and dismay over mart closure

Jun 20 2008 by Les Stewart

PERTH was dealt a devastating economic blow this week with the shock announcement that the Crieff Road mart is to close next year.

United Auctions is planning to amalgamate its Perth and Stirling sales to operate from a single site at the new Stirling Agricultural Centre.

But the news was met with dismay and anger by local politicians who have called on the company to “think again.”

The amalgamation is to ensure the “long-term sustainability” of the company and will take effect from June next year.

That’s when the construction of the new mart at Hill of Drip in Stirling is complete, at which point the Perth and Kildean mart sites will close.

In the meantime, the existing marts will continue to operate as usual, with no disruption to scheduled auction sales.

The announcement is part of the company's corporate strategy under the MBO team, who completed a buy-back of the livestock operation from property developer Elphinstone in February, 2007.

David Leggat, executive chairman of United Auctions, said: "This decision has not been taken lightly. We are responding to the changes in the sector and the challenges we're facing and believe we're taking the necessary action to ensure a sustainable future.

“Our staff and customers are our utmost priority and we're confident that the amalgamation will create a very exciting set of sales in a single location that will benefit our customers.

“We are pleased to reassure them that there will be no personnel changes – so they can rely on the same staff being at their service in the new location.

“We are incredibly proud of our history in Perth and at Kildean and will ensure that special Perth and Stirling sales, such as the Bull Sales, will continue to have their own identity.

“United Auctions are attending the Royal Highland Show and will be exhibiting a History Wall, specially produced for their 150th year, which depicts the evolution of the company and agriculture in images from 1858 to 2008.

Although the future of the Perth Agricultural Centre had been discussed in farming circles “for some time,” NFU Scotland vice-president Stewart Wood said that its planned closure in 2009 still came as “a shock and a disappointment” – to Perthshire and beyond.

Mr Wood, himself a customer and judge at the Perth Bull Sales, added: “Perth's reputation as a centre for quality livestock is worldwide, founded on the city's famous pedigree bull sales.

“The few weeks in the year when the pedigree beef world has historically focussed on Perth will have brought significant economic benefit into the area as well as enhancing Scotland's reputation as a source of high quality cattle.

“We hope that moving this event to United Auction's new market, currently being constructed at Stirling, will maintain and grow that part of the business.

“The closure of the Perth Agricultural Centre regrettably reduces the marketing options for livestock producers. Many of our members in the area are keen supporters of the auction mart system.

“They now face increased haulage charges at a time when all on farm costs are rising steeply."

Former Perth and Kinross Provost Alec Murray, who farms in Highland Perthshire, said that when the market was built – during his time as civic head – he thought it was going to be there for “posterity”

He added: “I could never have believed that having created such top-of-the-range facilities that they would disappear in such a short time.

“I hope to meet with manager Ken Ross to discuss the future and we will see if it is at all possible to keep it open.

“When people the world over talk about pedigree cattle, Perth is the first place they think of.

“The mart is one of Perth’s crown jewels and with it looking to secure city status it needs to protect every one it has.

“There are always rumours, but we all hoped that this would never happen. Now that it has, I am sure that the support from the farming community will be fulsome.

“The phones have been going all day in the farming fraternity. People are not happy.”

“Agriculture is all about continuity and we need to do everything we can to secure this facility for Perth.”

Glasgow-based property developer Elphinstone acquired United Auctions in 2005 for £52 million. A management buy-back was completed in 2007 and the executive team, comprising executive chairman David Leggat, joint group managing directors Neil McLean and Robin Tough run the company.