Grimmius Cattle Company?

[MLFuller]

Does anyone have an insight into what the plan is for Grimmius Cattle Company? They have purchased the high selling bull at Hoover Angus Farm, Spring Cove Ranch, Gardner Angus Ranch and many other notable breeders across the country just this spring. A little reading through their website and semen catalog show they historically have fed steers and heifers for dairies since the early 60s. Not sure how that translates to buying the top selling bull at every major breeder across the country?

Are they trying to be the next big semen company like ABS, Select Sires, Genex, ST Genetics, Alta, etc? Are they purchasing marbling genetics to incorporate into their Dairy business and then putting together a sire lineup to sell their semen as a compliment to the other business? Or is this just a massive tax write-off and depreciation play? Hoping someone on here has some insight into what their end-game is.

 

[LJCB]

I believe they are going to sell beef semen strictly to dairy operations. I asked Landi about getting semen on their top bull and she didn't know if there would be any.

 

[Stickney94]

Are they trying to be the next big semen company like ABS, Select Sires, Genex, ST Genetics, Alta, etc? Are they purchasing marbling genetics to incorporate into their Dairy business and then putting together a sire lineup to sell their semen as a compliment to the other business? Or is this just a massive tax write-off and depreciation play? Hoping someone on here has some insight into what their end-game is.

Those are ALL probably valid reasons. Last year another large dairy conglomerate, CRV Genetics, bought several high end bulls as well.

The bulls they have purchased have all tended to be high growth and high marbling.

44 Farms is partnering with Wal-Mart in what looks like a vertical integration. I'd say Grimmius is working on its own niche to make sure that the calves that come naturally from its dairy operation are Choice grade and higher to get brand premiums.