Buyers

To buy beef cattle, you must be a beef cattle producer, a licensed dealer or an agent of a licensed dealer.

Licensed dealers can include:

• Packing plant operators
• Abattoir operators
• Auction market operators
• Fair operators
• Exhibition operators
• Country dealers

Becoming a licensed dealer

Dealers must apply for a licence annually. Agricorp mails renewal packages to existing dealers 2 months before the dealer's licence expires. A $150 annual fee is required when applying.

Any third party, such as an agent, that is authorized by a licensed dealer to buy or sell beef cattle on their behalf may only do so with the written consent of the Director. Employees of dealers are not considered an agent and are not required to obtain an agent licence. A $50 annual fee for each agent is required when applying.

New dealers must contact Agricorp to request an application package.

Agricorp reviews applications and financial statements and issues licences to approved dealers and agents. If you fail to make payments within the timelines as set out below or default on payments, you may lose your licence.

A written agreement is required when a dealer buys beef cattle from a producer or sells or offers beef cattle for sale on behalf of a producer.

A written agreement is required in the following situations:

• A licensed dealer buys beef cattle from a producer or sells or offers beef cattle for sale on behalf of a producer.
• A licensed dealer buys or sells beef cattle with another dealer (licensed or not).
• A licensed dealer sells beef cattle to a producer.
• A licensed dealer sells or offers beef cattle for sale on behalf of another licensed dealer.
  

Every written agreement must include:

• Names and addresses of seller and purchaser
• Dealer licence number
• Sales/purchase date
• Description of the head to be sold/purchased including number of head and description
• Sales/purchase price including remittance fees
• Date of payment
• Payment terms: method of payment and timing of payment (note - not required when a licensed dealer buys or sells cattle on a behalf of a producer)
  

Payment terms and timelines for licensed dealers, producers, and co-operatives

Payments for purchased beef cattle can be made by cheque, direct deposit, electronic transfer, or other method agreed to by the seller and buyer. The method of payment must allow the seller to deposit the funds within the required timeframe. If paid by cheque, the cheque must be dated no later than the due date.

• If the amount of total sale is less than $15,000, the funds must be deposited into the seller's bank by 1:00 p.m. on the ninth business day after the price determination day.
• If the amount of total sale is $15,000 or more, the funds must be deposited into the seller's bank by 1:00 p.m. on the sixth business day after the price determination day.

The price determination day can be any of the following:

• Day of weighing if the price of the livestock is determined on a weight basis
• Day of grading if the price of the livestock is determined on a carcass-grading basis
• Day of purchase if the price of the livestock is determined on a per-head basis

Remittance fees

All licensed livestock dealers are required to remit fees on each head of cattle purchased. Depending on the type of sale, the fee may be payable by the producer; licensed dealer who sells the cattle; or the consignor and consignee. These fees are managed by the Livestock Financial Protection Board.

Fees are remitted based on the type of operation.

How to submit remittance fees

Agricorp mails all licensed dealers a Fee Return form, which the dealer needs to complete and return to Agricorp along with any applicable payment.

Dealers who purchase 1,000 head of cattle or less per year are required to complete the form and remit fees annually. Dealers who purchase over 1,000 head are required to complete the form and remit fees monthly.

Dealers need to submit a Fee Return form even if they did not have any sales during the period indicated on the form.