Livestock marts across the country are coming under increasing pressure to cut the option of credit availability to cattle buyers.

While most livestock marts in the country work off the policy that all cattle must be paid for on the day of the sale, in some cases, cattle are purchased and are paid for at a later date.

With the significant increase in the value of cattle over the past few months, mart managers have told Agriland the Property Services Regulatory Authority (PSRA) is strongly appealing to livestock marts to review the option of credit availability to cattle buyers.

Mart managers are concerned that where some outlets are in a position to offer credit and others are not, the outlets offering credit could be at a competitive advantage as a customer destination with some buyers of cattle.

Some mart managers have proposed that where cattle are bought and not paid for, these cattle should essentially be 'locked in' to the buyers' herds and if these cattle are subsequently sold, the funds from the sale of these cattle would go to the mart which is owed money.

While the majority of livestock buyers at marts pay for their cattle using their own capital or a stocking loan, there are cases where cattle are purchased on mart credit.

These buyers are essentially working off mart credit and have debts at some livestock marts which have caused significant issues in the past.

The PSRA is the statutory body with responsibility for licensing and regulating the property services sector (auctioneers, estate agents, letting agents and property management agents) in Ireland.

With the significant increase in the value of cattle over recent months, the amount of money turning over at cattle sales has also increased bringing higher risk in cases where cattle leave a mart unpaid for.

Most livestock marts around the country are now taking action to minimise their exposure to risk.

Earlier this week, Aurivo Marts circulated a message to its customers informing them that new rules apply to livestock purchases at all Aurivo Marts from Tuesday, July 15.

The message said: "All buyers must contact their local mart manager in advance to arrange a new trading agreement."