Here is a simple explanation of the auction process. Note that you can
(a) receive the meat,
(b) have it go to a charity, or
(c) reward a youth and let the meat enter the commercial supply.
The length of the auction is determined by the number of 4-H and FFA animals entered. There will be a limited number of chickens (pens of 2), a dozen rabbit meat pens (pens of 3), and a couple dozen turkeys. In the large animals there will be at least 25 steers (beef), about 100 swine(pork), 50 sheep (lamb), and 30 market goats.
This is a professional auction run by experienced, professional Auctioneers who work in the meat industry. An auction means that people in the audience bid against each other when an animal is brought into the ring; bidding continues until there is only one bidder left - at that point the animal is declared "sold" and the next animal is brought in. Note that the winning bidder usually represents only themselves, but that, especially for beef, may represent 2 or more buyers (sometimes 3) who plan to split the meat. There is an authorization form which permits the bidder to represent a buyer who is unable to attend.
Shortly thereafter a clerk will bring a sales order to the bidder for three things:
- A signature
- Disposition of the animal (deliver as meat to the buyer(s), give the meat to charity, or release the animal into the commercial meat supply)
- If the meat will be delivered to the buyer(s), they will need to note the selection of a destination butcher (from a list given at the auction) for delivery of the carcass from the slaughter house (beef, sheep, goat, and swine only)
Small animals (poultry and rabbits) are slaughtered by the seller and delivered to the buyer as there are no commercial processing facilities available for those species.
In general the bidding is in terms of the amount per pound of the animal - the weight was obtained on calibrated scales when the animal arrived at the Fairgrounds the previous Monday. The weight is listed in the sale catalog.
When you arrive you have to sign-in to receive a bidder's number card (which you hold up to make a bid) and a copy of the sale catalog. For the four large animals there will be an extra cost added to your bid cost (weight x $/lb) to cover the processing at the slaughter house. This is about $75 for beef, and $25 or $35 for sheep, swine, and goats. The carcass is delivered to your designated local butcher. That butcher will usually contact you ahead of time to determine how you want the meat divided. You then pay the butcher for the cut-and-wrap when you pick-up your meat.
It is also possible to bid on an animal and not take the meat. There are two ways to do this:
- You pay the full amount of your bid, plus the processing costs for one of the large animals, and donate the meat to a charity, such as Second Harvest. The entire amount is then deductable that year as a charitable deduction.
- You 'buy for resale'; in this method the current market value of the animal that day (listed in the sale catalog) is deducted from the amount you bid; you pay the amount over that. The Fair then resales the animal to the slaughter house at the market value. The youth gets the full amount of your bid and you have only paid the difference. (example: your winning bid was $3.00 per pound; the Friday market price was $0.59 per pound; you pay $2.41 per pound, plus the processing fee if it is one of the larger animals).
In all cases, the youth gets the full amount of your bid, less a 5% handling fee charged by the Fair to cover the costs of the auction. This is the same deal a commercial grower gets when they sell their animals - the amount bid by a buyer less a handling fee charged by the auction house.
For the three larger animals a group of 2 or 3 buyers may band together to buy an animal and split the meat. They have to select a single person to perform the bidding process for them (usually it's one of the buyers). The cost will be divided between them, with each receiving an equal portion. Note however that the entire animal must be disposed in the same manner; for example, you can not take half the meat and donate the other half to charity.
You must pay before leaving the auction. In general checks are not accepted from first time buyers. Repeat buyers must obtain approval ahead of time to have their check accepted. Most people pay with a credit card, although we would like to discourage this as the credit agency collects 2.5% of the amount as their fee.
Also, all animals that go through the auction must be slaughtered; there are no 'live' sales - ie: the buyer takes the live animal when they leave, picks them up after the Fair, or the seller delivers the live animal afterward. If someone wants to buy a live animal they must make arrangements with a seller ahead of time; that animal does not go through the auction process.
