The last day of the traditional shout auction at Brixham Fish Market will be 3 June 2019. On 4 June 2019 Brixham Trawler Agents (BTA) will introduce “Kosmos” – a new cloud-based fish auction system that will mean that fish buyers will not need to be onsite at the market to bid for fish. This will be the first of its kind.
According to BTA Managing Director Barry Young, the launch of a web based clock auction was inevitable. It has been a topic for discussion for many years but it is only recently that the circumstances have arisen to make it a viable option.
The key factors driving this change included:
- A willingness to promote the fish market to a wider audience.
- Having a world class product to sell which was consistently a very high quality.
- A need to remove the pricing peaks and troughs and stabilize fish prices.
- Trawler owners recognizing that the new system would stabilize fish prices.
- Giving buyers the opportunity to buy Brixham fish from where ever they are, and fish always being available to them.
- Providing a very competitive market place for both buyers and sellers.
- The availability of cloud based technology which is simple, flexible and easy to use.
Once the board of BTA had taken the decision to push ahead with the new online cloud based clock auction they were very keen to ensure that they brought the existing buyers onboard with their intentions. BTA are very aware that existing buyers have supported the fish market for many years and in some instances over several generations. Many of these buyers would have had worries about the impact on their business. BTA has recognized these concerns and offered a program of training. One of the main principles behind the decision to invest was to ensure the future of the fish market, which in turn would have a positive effect on both the trawler owners, the existing buyers and supporting local industries.
How the cloud based fish auction works
Web-based fish auctions are not a new concept with many fish markets already selling online. The main difference and benefit of the new cloud-based fish auction that will be implemented at Brixham Fish Market is that there is no need to download software to a specific PC or buy and install any hardware in order to bid for fish.
The new software is hosted in the cloud and can be accessed from anywhere in the world as long as the user is registered as a fish buyer with Torbay Council, has set up an account with BTA, has internet access and the required password and log-in details.
BTA have upgraded their broadband and Wi-Fi network to increase capacity to ensure constant access and reduce latency (the time delay within the network).
One major difference that buyers will need to get used to is that the bid price starts high and is reduced in stages until a buyer makes a bid. This “Dutch Auction” process has been a tradition on the continent since the Middle Ages but will be very new to many UK buyers.
The BTA chief auctioneer, John Rogers, will start the bidding process and manage the clock auction. As the clock runs, the price decreases until a buyer makes a bid by hitting his keyboard, the clock stops and the buyer then informs the auctioneer how much fish they wish to purchase. The clock then resets and the process repeats until the total stock has been sold. Each buyer has the same chance to stop the clock and purchase as little or as much fish as they require.
The benefits of the clock auction
Businesses thrive and survive by matching supply to demand; a mismatch either way will have a positive or negative impact on pricing and cause instability in the market. By opening up the market to potential new buyers BTA hope that this will allow prices to become more stable irrespective of the quantity of fish landed.
In addition, BTA hope that by introducing this new cloud based auction which is a world’s first within the fishing industry and far superior to any systems currently operating across Europe, they will persuade more trawler owners and skippers to land their catch in Brixham.
The auction software is very flexible and allows BTA to construct a catalogue on the night prior to the auction. This is important because many of the buyers will be remote from the fish market and won’t be able to view the catch so the catalogue needs to contain all of the information a buyer needs to make decisions including fish types, quantities, amount of time the boat spent at sea, where the fish was caught and the quality score.
Also, buyers can set pre-bids for specific quantities and types of fish in advance. For example they can set a pre-bid for 10kg of monkfish and 50kg of turbot the night before the auction and have an extra hour in bed.
A steep learning curve for all involved
This will be a new experience for all involved. Buyers and BTA auctioneers used to the banter of the traditional shout auction will need to get used to operating in a classroom environment. BTA staff has gone through weeks of training and preparation to ensure a smooth transition. Additional training for fish buyers has also been given to get them used to the different way of doing things.
Barry Young stated “the cloud-based fish auction is a major investment for BTA and we took that decision on behalf of the whole fishing community as we believe this is a game-changer for our industry. It has been 50% grant funded under the European Maritime and Fisheries Fund and if we see an annual increase in the price of fish of between 2% to 3%, we will get the required return on our investment”.
On the day of the launch representatives from Belgian based software company Aucxis, who have written the Kosmos program, will be on hand to ensure the launch goes smoothly and if required smooth out any unforeseen glitches. BTA fishing consultant Kurt De Lange who has project managed the launch and the training will also be present to assist.
BTA
