A MAJOR step to boost farming on the brink of the Millennium has been taken by two well-known West Country firms.

Livestock and agricultural property auctioneers Kittows and Vicks are merging to form a new company operating from Hallworthy Market in Cornwall and Hatherleigh Market.

The organisation — called KVN Stockdale Ltd — will also incorporate a franchise with the national dairy cattle specialists Norton and Brooksbank in the Southwest.

Managing director Peter Dennis said the aim was to promote West Country products for West Country farmers.

'Since BSE came in 1996 marketing of stock has been very hard and what we are doing is putting a firm together that will be big enough and strong enough to promote West Country livestock.'

Mr Dennis pointed out some of the stock in the region was 'the best you get anywhere'.

'The areas of Hallworthy and Hatherleigh are two of the main stock areas in Devon and Cornwall. Primarily we are about store stock and dairy. The area has the best ground — it's livestock country.'

He said the merger would benefit everyone involved in the industry.

'The farmers will benefit as well as us. We have got to become stronger. You can stay as you are and nothing changes but we are looking to the future.

'We must evolve with the industry — if we don't we lose out. This is our first step in getting ourselves set for the 21st century.'

Mr Dennis said it was essential to do more to promote the product.

'BSE hurt every section of the industry because the prices plummeted since 1996 and they are taking a long time to recover. We want people to know that in the West Country and Devon and Cornwall in particular the stock is good and healthy.

'We have the raw product. We are trying to get slightly bigger and try and promote it more. You cannot do it so well as a small individual company.'

Mr Dennis said it would be 'business as usual' at the markets with the same personnel.

Norton and Brooksbank partner Lord Rathcreedan becomes KVN Stockdale's chairman.

'This new livestock and property marketing company is needed to support West Country farmers at a critical period for farming,' he said.

'Our aim is to develop a top quality livestock marketing operation throughout the South West region.'

Ernst and Young (Exeter) Corporate Finance conducted the negotiations and the NFU Mutual Insurance Society has taken an equity stake in KVN Stockdale to support the merger.