Return on Investment

[Bestoutwest]

Ok, maybe this has been answered before, but how do these guys make a return on their investment? Are they selling that many straws and certificates off of these bulls? Are their calves that surperior that they're making it up at the salebarn? I just can't fathom that a $16,000 bull can do a better job than a $5,000 bull raising calves for the salebarn. Please no cryptic answers. PM me if you don't feel comfortable answering it here.

And if anyone on here is from one of these programs, I'm not knocking them. I'm just curious b/c I see this where bulls are going for $10,000/20/000,30,000+ all the time.

http://www.angus.org/AngusProductions/S ... 9OafTcE%3d

 

[ga.prime]

You are right, a $5000 bull is all you need for salebarn calves. The higher priced bulls are largely for purebred producers that are going to have their own production sales, so their cleanup bulls need a $$$$ reputation. High dollar sires look good and create interest in the animals featured in the sales brochures.

 

[cow pollinater]

Not everyone sells at the salebarn. If, for example, you retain ownership and sell on the grid and run in big country where AI is not a viable option for most of the herd then the right bull that can go do the job in big country(not all of them can) and not only make steers that fit the grid but daughters that do as well that will stay in the herd then it starts looking like a pretty good investment.
Personally I wouldn't spend that but I can make my own much cheaper and not everyone can do that.

 

[bigbull338]

if your going to run the best cows you can.then it takes the best bulls you can buy no matter the breed.i never thought id be giving what it took to buy the best cows i can get.the bulls are the same in my breed.

 

[Bestoutwest]

Thanks for the replies guys! Makes sense, and I thought it would. It's just hard to fathom some of the numbers being thrown out there for a bull.

 

[greybeard]

Been only a few years ago that $2500-$3000 would buy a good bull with proven genetics--not the case today at all.
Better dig deep or go AI--or be willing to settle for less, like I do.

 

[Bigfoot]

Been only a few years ago that $2500-$3000 would buy a good bull with proven genetics--not the case today at all.
Better dig deep or go AI--or be willing to settle for less, like I do.

I think I've bought my last bull. I believe I'll just raise my own from here on out. I can't see paying what bulls are bringing now. Going with single trait selection to. I'm not banding the bull calves off of cows with a proven high weaning weight. If it ends up with a big butt, and capacity, It's going in my bull pen.

 

[wbvs58]

Over here some bigger producers are buying fewer bulls but the higher selling ones to put with their premium cow herd to produce their own herd bulls.
With the extreme high priced such as one that was sold for an Australian record Angus price of $150,000 just recently, a very nice bull, however I don't believe the buyers care how much they pay, in fact the more the better as long as it is a record as the massive press given to their purchase is a lot cheaper than if they had to pay for it and hence then justifying an exorbitant price for the semen and also his progeny will have an instant honeymoon period until he gets proven or not. I bet they do not put him in the Angus benchmarking program as he has too much to lose with his reputation.
Some of the syndicate also like to have their name associated with the purchase, an example was one member of the losing syndicate quickly jumped ship and bought into the winning syndicate. This fellow seems to have an unlimited advertising/promotion budget and the part ownership of this bull will not be lost in his PR programme so the money will be well spent.
The name of the bull has to be good, a top selling bull a couple of years ago quickly had his name changed to "Godfather" as his original name was a bit wishy washy I forget what it was but everyone remembers Godfather and it attracts people who don't know anything about the bull other than it was high priced and it had that name so must be good.
Ken

 

[denvermartinfarms]

Been only a few years ago that $2500-$3000 would buy a good bull with proven genetics--not the case today at all.
Better dig deep or go AI--or be willing to settle for less, like I do.

I think I've bought my last bull. I believe I'll just raise my own from here on out. I can't see paying what bulls are bringing now. Going with single trait selection to. I'm not banding the bull calves off of cows with a proven high weaning weight. If it ends up with a big butt, and capacity, It's going in my bull pen.

I'm doing the exact same thing, i weaned some this week and have a bull calf I'm going to feed till may and I think will then replace one of my older bulls.