In a rapidly evolving global economy, the agricultural sector remains the backbone of many nations, particularly in Africa, where livestock trading plays a vital role in sustaining livelihoods and driving economic growth. Yet, this industry faces critical challenges, from pricing inefficiencies to limited market access for rural farmers.
To tackle these issues, Murray Roos, CEO of the revolutionary digital platform LiveStockEx, has taken centre stage. His innovative approach leverages technology to create a secure and transparent marketplace, transforming the way livestock is traded across the continent and beyond.
In this exclusive interview with The Southern African Times, Roos delves into his vision for modernising livestock trading, the importance of rural empowerment, and the future of agriculture in a digitised world. Whether you’re an investor, policymaker, or industry stakeholder, his insights offer a compelling glimpse into how technology can reshape traditional industries for sustainable growth.
Below is the full Q&A, providing an in-depth look into the strategies, challenges, and aspirations driving this game-changing platform.
1. Your career began at the London Stock Exchange before transitioning to LiveStockEx. What inspired this shift, and how do you reflect on the transition from traditional finance to agri-tech?
My career actually began in equity derivative trading in Johannesburg, where I worked for Deutsche Bank after graduating UCT as a Chemical Engineer. I worked in banking for over 20 years before moving to the London Stock Exchange Group, where I ran the Capital Markets division (including the LSE itself) for four years. My family has a background in farming in Southern Africa (South Africa and Zimbabwe), and I always wanted to farm myself. I bought a farm in the UK in 2021 as COVID was ending, installed a manager, and started farming beef cattle, while still working in finance. Through that process, I saw the inefficiencies in the livestock markets first-hand. With my experience in financial markets, I thought it timely to create a solution to the problem that farmers face with the current market structure.
2. With your expertise in trading systems and financial markets, what parallels do you see between digital livestock auctions and global commodity exchanges?
I think that the cattle market of 2024 reminds me a lot of the equity market of the 1990s. The open outcry system is in full swing, and the market conduct is similar. There are inefficient and unscrupulous practices in the auction rings (market manipulation) which detriment farmers. The transaction fees are high (5-10% all in), there is low transparency of pricing and activity, high price volatility, and captive markets, rather than the democratic structure of electronic markets. In addition, two features of the current livestock markets that were not a problem in the equity markets (and present even more of a reason to move digital) are biosecurity risk and carbon footprint. Current open outcry auctions create unnecessary travel of animals, creating welfare concerns and also increasing biosecurity risk as animals from across a region are put in close proximity with each other at auction sites.
3. LiveStockEx leverages technology to transform livestock trading. Could you explain how its innovations, such as instant payments and a quality index, bring tangible benefits to farmers and buyers?
The primary advantages are higher prices for sellers (lower transaction fees), better animal welfare (less stress on animals being moved around to markets), lower carbon footprint as animals are moved shorter distances, and lower biosecurity risk as animals are not collected together at large auction markets. Data plays a large part in the offering. By enriching the market with data, it gives the buyers confidence to make buying decisions, understanding price history. The analytics we offer give buyers more information to make these decisions. The dispute resolution we offer also allows transactions to happen with confidence, as both buyers and sellers are protected via an independent resolution service.
4. Sustainability and animal welfare are growing global concerns. How does LiveStockEx position itself as an ethical solution in the context of these pressing issues?
Excessive handling of animals increases stress and impacts animal welfare. The process of transporting animals to auctions, parading them in auction rings, and keeping them in holding pens is detrimental to their health. Additional transport required to include the auction site in the animal’s journey from seller to buyer also adds to this stress. Animals lose condition and weight when they move through the livestock auction process. LivestockEx eliminates this, reducing miles travelled from seller to buyer, and lowering carbon footprint in the process as well.
5. Farmers are often cautious about adopting new technologies. How are you building trust and encouraging participation from more traditional agricultural communities?
The pace of market adoption is something we are mindful of. I have seen this in other markets, and it’s understandable that the process will take time. The important thing is that the incentive for farmers to adopt the LiveStockEx market structure is very well aligned with their interests. My experience has taught me that creating change when the instigators of that change are the most direct beneficiaries offers the best chance of success.
6. How has LiveStockEx collaborated with regulatory bodies, like the British Cattle Movement Service, to ensure compliance and transparency?
The source data of cattle on farmers’ holdings is maintained by the BCMS. LiveStockEx interacts with that data via an application process interface to allow for farmers to see the exact records of their livestock in the LiveStockEx system. In time, it is envisaged that LiveStockEx will also handle the post-trade regulatory reporting associated with cattle movement.
7. Scaling a platform like LiveStockEx requires significant foresight. What challenges do you anticipate as you expand operations, and how are you preparing to address them?
The largest challenge is market adoption. Changing the status quo is challenging, and it is imperative that we listen to, understand, and solve the problems that our customers have in order to win their trust and change the way they currently trade livestock. Within market adoption itself is the notion of “buying without seeing,” which is required for the marketplace to work. Our goal is to use data and analytics to provide the buyer with information to give them the confidence to make a buying decision. This shift has successfully worked in many “unshakable” industries like second-hand vehicles, apparel, and even horse racing.
8. Africa, with its rapidly growing agricultural sector and diverse farming communities, presents significant opportunities. What are your thoughts on expanding into African markets, and what challenges or opportunities do you foresee?
We are already in discussions with operators in some markets in Africa. We see great opportunity to assist farmers in Africa by providing them with data to understand market trends and the value of their animals, and also crucially to allow regulatory bodies to understand animal provenance and movement patterns, to reduce biosecurity risk.
9. Africa has a rich tradition of community-based farming. How does LiveStockEx aim to integrate its technology while respecting these traditional practices?
I think that complementing traditional farming practices is key to adoption. Livestock markets in Africa have traditionally been a gathering of community, and this would continue to be the case even if LiveStockEx were a primary price discovery venue. We are not aiming to replace this, but rather to bring data to enrich traditional practices and offer participants access to transparent prices.
10. Beyond livestock, could the technology and systems behind LiveStockEx be adapted for use in other agricultural sectors or regions?
We see application for any marketplace where there is physical delivery, and where the current market structure is “many sellers, few buyers,” and many of the agricultural food markets have these characteristics. We are in very early stages of investigating lentil markets, for example.
11. In what ways can LiveStockEx contribute to Africa’s broader agricultural goals, such as food security, rural development, and sustainable farming?
Education and information are powerful, especially when it is democratised. LivestockEx does just this. This improves the understanding of markets and prices for all participants. Reduction of frictional costs also allows farming to become more profitable, encouraging future generations to pursue it. This has become a genuine problem in markets such as the UK. A vibrant, local farming community is essential for a nation’s food security, as we have seen in recent years.
12. Blockchain and advanced trading technologies are becoming increasingly relevant in agri-tech. Are you exploring these tools for LiveStockEx, and how might they enhance operations or transparency?
We have a lot of respect for blockchain, and distributed ledger technology in general. At this stage, it is difficult to see the additional benefit it brings over standard digitisation which LiveStockEx provides. Our solution evolves markets from manual to electronic but uses traditional databases and payment rails to facilitate its operation.
13. Your platform includes a free farm management system. What role do you see it playing in transforming the daily lives of smallholder farmers, particularly in emerging markets?
The farm management system we provide allows farmers to better understand their herds. Recording of weights allows farmers to understand daily liveweight gain and feeding efficiency. Recording of medicine administration allows farmers to keep track of their animals’ vaccinations. Grouping of animals allows farmers to make better sense of different parts of their herds. This functionality is currently available and is well used in the farming community, but we intend to make it more economically accessible to drive adoption of technology.
14. Securing investment is crucial for growth. What’s your strategy for attracting global investors, and how do you plan to allocate funding for international expansion, including Africa?
We are at a seed stage in our company’s journey. We certainly have ambition to attract global investment, but are respectful of the need to “walk before we run.” That said, the markets of Africa and Asia present a lot of opportunity, and to the extent our exchange can make a difference there, we will expand.
15. Collaboration is often the key to success in new markets. How do you envision partnering with governments, local organisations, or regional stakeholders to foster mutual growth?
The interests of governments and the farming communities are often well aligned. Safety, biosecurity, record management of livestock is of keen interest to regulators and government bodies, and LiveStockEx facilitates accurate and efficient data collection to satisfy those interests. We are working with government bodies in a few countries to explore this further.
16. Finally, how do you see LiveStockEx contributing to the broader global conversation about sustainable agriculture and trade in the years to come?
We have the view that democratic, electronic marketplaces where transaction decisions are underpinned by accurate data and analytics create the most effective foundation for sustainable trade, irrespective of the industry. The agricultural industry is so important to our future, and we at LiveStockEx hope that we can contribute to building that foundation.
This interview was conducted exclusively for The Southern African Times, highlighting LiveStockEx’s transformative approach to livestock trading and its potential global impact.
