Background

Livestock Auctions has developed an online auction portal, which will allow the livestock industry to move into the world of online technology, with live livestock auctions for the first time in Southern Africa.

These online auctions are a joint cooperative initiative between live auctions, auctioneers and Livestock Auctions. The portal allows the stakeholders in the livestock industry to participate in live online auctions on the internet. It also allows livestock farmers and industry players to view auctions online via video streaming technology on the internet. This technology has been developed in conjunction with major players in the industry and will move the livestock industry forward into the online world of the internet, thereby assisting stakeholders and the livestock industry to reach all corners of the world, while enabling buyers of livestock to participate in auctions from anywhere where there is internet connectivity.

The online auction portal was specifically developed to allow livestock industry players to participate in online auctions on the internet without having to travel hundreds of kilometres to attend live auctions. For those parties who have a keen interest in following every single game auction, they can now view these auctions online and stay in touch with the livestock industry by viewing all major live auctions online and keep track of the bidding at these auctions.

These are some of the key features of Live Webcast Auctions:

* Non registered users can still view the auction online during the day on www.livestockauctions.co.za by selecting the specific auction. The auction will only be available on the website for bidding at the time set for the auction. No bidding on the lots will be available until the auction is open;

* User will only be able to bid on the lot open for bidding. No other lot can be bid on unless the administrator opens the lot for bidding. Lots will open for bidding in conjunction with the auctioneers at the live auction and only lots open for live bidding at the auction will be available for bidding by users on the internet;

* Livestock Auctions will inform a bidder as soon as a lot has closed for bidding. A "Bid closed” sign will be displayed over the specific lot;

* Livestock Auctions will inform bidders of the outcome of the auctioned lot. This information will be displayed over the specific lot;

* If an online bidder is successful, a transaction document will be emailed to the bidder with all relevant contact details and information, allowing the bidder to get in touch with the relevant auctioneers and transporters of the day;

* All terms and conditions set by the auctioneers of the day will apply to the successful bidder of the lot including payment and delivery.

Video streaming will always lag in comparison to the real-time transmission. Video streaming on the site can lag or be delayed by anything from a minimum delay in the video streaming of 2 seconds to as much as 20 seconds depending on the users bandwidth and connectivity. It is important to note that the video streaming on these auctions runs completely independent of the data transmission and users can therefore participate in all live auctions without the live video streaming from the auction.

Livestock Auctions developed ground breaking technology to assist the livestock industry in promoting livestock auctions across the world and specifically Southern Africa. These technological advancements take the industry to new levels and create a larger exposure to the benefit of all stakeholders in the industry. It allows for an increase in participation in live livestock auctions. More participants will be able to view and participate in these auctions, which benefits the total livestock industry in South Africa. Bandwidth and satellite technology in South Africa is not nearly as advanced as in the rest of the world but currently we are quickly catching up with new technology such as Vox Telecom systems and the new LTE data from Vodacom and Microwave Links from MTN, which will ensure a better and faster bandwidth in South Africa. This will in turn enhance the users experience tremendously. Livestock Auctions is very involved with suppliers of data connectivity to set the standard for these new technologies and to create a platform for a better experience during these live online auctions.

Our online auctions make use of the latest technology available in the market to allow the user to have a real online experience of these auctions. It however still relies on technology that makes the experience of the user dependent on several factors including, but not limited to, bandwidth of the user, speed of the user’s computer and the quality of the connectivity to the satellite. These factors are beyond our control and Livestock Auctions can therefore not guarantee the quality and speed of the online user during these auctions.

Livestock Auctions have encountered the following issues that are amongst others unpredictable for live online auctions and the online user needs to take cognizance of these factors namely:

* speed of the users bandwidth and computer during the auctions;

* loss in connectivity during the auctions due to bad weather conditions or congestion on the data network

* If the bandwidth of the users and data speed is very slow the bid submitted to the auction will be submitted late and therefor will be rejected by the administrators. These bids will have no effect on the online bidding. It is therefore essential that the user ensure he has good connection if he wants to participate in the live auctions.

* Livestock Auctions cannot take any responsibility for late bids submitted due to any connectivity problems as bids submitted after the lot has closed will be rejected and will have no force or standing ;

* All users will abide by the terms and conditions of the auctioneers of the day for these online live auctions. Livestock Auctions only enable the online user to participate in the auctions and will not be involved in any issues relating to the live auctions. All information displayed for the auction in the auction details and catalogue information, is supplied by the host auctioneers and sellers of the day. Livestock Auctions does not take any responsibility for the correctness of the information supplied by these stakeholders. Livestock Auctions only presents the information online as supplied by the auctioneers and sellers of the day;

* All information displayed for the auction in the auction details and catalogue information, is supplied by the auctioneers and sellers of the day. Livestock Auctions does not take any responsibility for the correctness of the information supplied by these stakeholders. Livestock Auctions only presents the information online as supplied by the auctioneers and sellers of the day;

* The auctioneers allow bidding at certain increments during the live auction and the online bidding process must follow the increments set by the live auctioneer. The administrator will adjust any increments, up or down, set by the auctioneer of the day during the auction process. Only bids submitted more than the incremental vales set by the administrator will be accepted by the system and therefore increasing a bid with e.g. R1 will not be accepted by the system and the online auction.

* To facilitate the process, buyers will not have to type in amounts, as there are "quick bid buttons" on the page. Buyers only have to click on the button for R100, R200 etc. after which the bid is added and the total new amount offered appears on the screen. Invoices are issued directly after the auction, after which payment takes place. The animals are loaded at the place and on the day advertised prior to the auction. Buyers will be able to arrange their own transport, or they can request the seller or Livestock Auctions to take care of these logistics. A Comprehensive “Transaction Document” will be send to every successful bidder after the auction.