Beefnet to auction Mexican cattle

Cattle Market & Farm Reports, Editorials
Mar 14, 2005
by WLJ
Beefnet, an Internet cash commodity exchange, announced a partnership with Union Ganaderas de Chihuahua. The Union, a cattle association in Chihuahua, Mexico, plans to market Mexican producer cattle over the Internet using the Beefnet Exchange.
The complex world of purchasing cattle in Mexico has forever frustrated U.S. buyers. The development of the Internet and the ability to trade directly with the cattle owners will mean major improvements for both buyers and sellers, according to a Beefnet press release.
A centralized marketplace will allow the best buyer to find the best seller resulting in improved pricing for both. Lower transactions cost created by the electronic exchange will complete the package delivering better prices and lower costs, the release says.
“We have combined click and buy trading with electronic settlement and clearing on the financial side,” said David Huseman, Beefnet technical designer. “The Beefnet site allows members to match trades for the purchase of cattle and when delivery occurs to transparently watch the money flow after the parties have agreed to the final settlement.”
Regular Internet auctions will be hosted on the Beefnet Web site. The trading fee will be $6/head with buyer and seller paying $3 each.
“From the click of a mouse to make the purchase to the e-confirm purchase contract, transparency and efficiency will rule”, said Beefnet developer, Bill O’Brien. “U.S. buyers expect to receive what is represented to them, and we have built a trading platform to assure purchases meet those expectations.”
“Our Mexican producers want a competitive market for their cattle and the centralized marketplace developed by Beefnet presents the future for livestock marketing,” said Bilo Wallace, association president.
Membership in Beefnet will be free. All Members agree to be bound by the terms and conditions of sale posted on the web site. More information and sign up for membership are available at www.beefnet.org. — WLJ
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