UNITED Auctions – which controversially walked out of Oban in 1993 – could be set to walk back in following a move by Oban Livestock Centre which leaves its operator for the last 20 years, Caledonian Marts, out in the cold.

Following a tendering process which saw interest from five auction companies, including a bid from the Caley to stay, OLC directors have chosen UA as the preferred bidder, ahead of the runners-up, Longtown-based C and D Auction Marts.

But the deal is not yet sealed. OLC chairman Duncan Buchanan, who farms at Benderloch, near Oban, told The Scottish Farmer: “The final decision will be taken by our 500 shareholders at our agm on May 30.

“The decision to put a tendering process in place was not taken lightly, but with Brexit looming, and the uncertainty which that brings, we believe the timing is right. While Caley have done a good job, livestock numbers have been falling, and sales at Oban have been dwindling with just 19 last year," said Mr Buchanan.

“It was felt that UA have a strong foothold in the area, with their presence on the islands, and at Dalmally, and will be able to generate more business. Given the history of Oban it is understandable that some folk will have reservations over UA taking back control. But the old regime at UA have gone, and there's a new vibrant team in place. We feel it is the right move.”

Former OLC chairman, Donald MacGillivray, from Mull, said: “The directors have done their homework on this and it will be a sad day if shareholders overturn their decision at the agm. There are supporters of both UA and Caley in the area, and I’m sure that will continue. Yes, some still feel UA were wrong to leave Oban the way they did, but a lot of water has flowed under the bridge since then.

"It’s not the UA of old which will be in charge of Oban if the decision is ratified. It’s a new UA with a younger go-ahead team.”

OLC board member Neil McCorkindale, from Kilninver, also commented: “I’ve been on the board of OLC since the market opened in 1994 and during that period we have had to make important decisions and this is another one.

“I expect we will have to fend a few questions at the agm over our decision, but we will have no problem in answering them. It was contentious when we brought in Cally, and there will possibly be some dissenters to UA.

“We were impressed with the Longtown presentation and while I accept that, with UA having such a stronghold in Argyll, competition has been removed, we are confident that those behind the new UA team will generate business and bring a profit to Oban mart.”

Hugh MacPhail from Mull added: "We are entering uncertain times. Oban needs throughput and if we had one or two operators in the area given the decline in stock numbers, throughput could be hit and we need numbers to get buyers.

“Cally have done a good job but their commission was higher than the rest and some farmers were not happy at that. I’m not going to predict the outcome of the agm, but the directors feel that UA have a young team of auctioneers and the company as a whole are very progressive.”

New managing director of UA, George Purves, was cautious in his response saying simply: “United Auctions have met with the board of Oban Livestock Centre and confirmed our intention of interest to operate the mart.”

His counter-part at Caley, John Kyle, was more forthcoming: “Our board is indeed disappointed that we are no longer going to operate the Oban livestock auctioneering service on behalf of the farmers and crofters of the West Highlands and Islands.

“We have operated the market for over 20 years and have regarded our Oban business as an important part of the company’s operators. We regard it a privilege to have had this opportunity to serve the livestock producers in the west. We have enjoyed meeting them as well as working for them, and we hope to maintain our contacts through our market at Stirling and our representatives will continue to visit our many friends and customers in the west.”

Speaking on behalf of the tender runners-up at Longtown, John Thomson said: “I can confirm we were interested in running Oban and we are very disappointed in the outcome. We put a lot of effort into our proposal and felt we could have injected some fresh competition into the area.

“We weren’t in it simply to buy stock for Longtown – we genuinely felt that we had something different to offer farmers in the region," he added.