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OUR THOUGHTS ON THE VALUE OF BULLS
Bull Purchase Price
Purchasing bulls is a critical management decision.
The following table was developed assuming: annual
bull maintenance costs of $350 (operating costs plus a
10
percent risk of death loss), a 90 percent calf crop, and
a salvage value of $1,100. Several conclusions can be
reached from this data:
Losing a bull in the first or second year is extremely
costly on a per-calf basis and the loss overwhelms most
of the genetic potential that might be derived from that
sire’s limited influence in the herd.
When possible, bulls should be servicing 25 or more
females per season to allow the enterprise the flexibility
to spend more on each bull purchased. Determining the
price to be spent on a bull depends on the marketing
target and the bull’s ability to generate an advantage in
excess of the additional cost per calf as purchase price
increases. For example, a bull purchased for $3,000 and
used in a 1:25 scenario for four years must contribute
more than $5.56 per calf across all four calf crops to war-
rant the additional price as compared to a $2,500 bull.
The national sire evaluation system allows produc-
ers to make reasonable comparisons between bulls and
groups of bulls by estimating expected progeny differ-
ences for traits such as weaning weight, yearling weight
and carcass weight. These estimates can then be as-
signed economic value by applying market prices. Some
breed associations are now providing additional index
values that are reasonable estimates of composition traits
such as carcass value, maternal merit and feedlot perfor-
mance.
Reprinted with permission from Cattle-Fax
We often get asked how much should we spend on a bull
and the following article and commentary provide some insight to that question.
Many people tell us they can’t afford to spend much on their bulls. This couldn’t be further from the truth. The cost of running a good bull is the same
cost as running a bad bull. A good bull will easily add 30-50 pounds to your average weaning weight. Even if the bull is only mated to 25 cows and you
get a 95% calf crop with a modest $1 per pound value, then the good bull will net $712.50 to $1187.50 per year above an average bull. With an average
useful life of 4 years and an equal residual sales price, you can pay $2800 to $4750 more for the good bull over an average bull without a loss of profit-
ability. This is before you consider that current prices on weaned calves are above the prices listed, good bulls last longer on average, have better resale
and are often mated to more than 25 cows. Most operations would improve their bottom line by breeding to higher quality bulls.
Comments from Bieber Red Angus Ranch:
Cattle-Fax points out that $500 more on a bull means that the bull needs to contribute $5.56 per calf across 4 calf crops to warrant the additional
price. If you do the math on a 600 lb. calf at $1.40, it only takes a little over 5 pounds per calf to break even on the high priced bull. We have consis-
tently found the real value of high priced bulls comes in added value to the heifers calves. Often this past fall and winter the difference between re-
placement quality heifers and average heifers was $10 to $20 dollars per hundred weight at the same auction on the same day. We have a customer
that decided to support a breeder with a very short history and purchased two bulls. His bull battery contained three bulls from Bieber Red Angus
Ranch and two from the young breeder. The herd runs with one bull per breeding pasture. This customer found out that the Bieber Red Angus
Ranch bulls gave him an average 60 lbs. more per calf than the other breeder’s bulls. This producer told us “I am tired of helping everyone else.
From now on, I will be back to buy Bieber bulls to help myself. Your bulls are just bred better.”
In 2011, a producer who works with his family commented that his father had refused to buy bulls and rented Angus bulls from a local small
producer. This producer buys bull from the upper end of our program and others. This producer managed his cow and his father’s cow very similarly
but bred each of their own cows in separate pastures. When it came time to sell calves in the fall, the producer’s calves weighed 250 lbs. more than
his father’s. His hard work and diligence in paid dividends to the tune of $375 per calf. This operation spends between $5000 to $10,000 per bull and
place a lot of value on good genetics.
Just one more fact to support the case for better bulls. Land Grant Universities have often shown that being a “low cost” producer is a key to sur-
vival in the cow/calf business. Ironically, the same research has shown that buying good bulls is the only area where low cost producers spend more
money than high cost producers.
The initial reason we liked the Cattle-Fax article was that we want our customers to understand that taking care of a young bull the first year, and
every year after, is worth it. It can be very costly if one loses a bull in the first year. Bulls really should be separated from the cows to reduce competi-
tion for resources. They require some added care throughout the year to function like a fine-tuned athlete for your breeding season. We can’t stress
enough that the cost per calf weaned will significantly decrease if bulls have proper care during the off season, particularly in the first year.
DELIVERY POLICY:
Free delivery on all bull purchases over $2500, to
central points within 300 miles. Volume purchases of 5 or
more bulls selling to one ranch delivered up to 500 miles.
All bulls under $2500 and females will be delivered to
central points at cost. Central points for delivery will in-
clude auction barns, vet clinics and ranches that offer to
serve as a delivery point. We simply ask for your coop-
eration in arranging the delivery of your bulls. This will
keep the bulls from being on the truck longer that neces-
sary and help to get the bulls to you with the least pos-
sible stress and in the best possible condition.
We are able to load out bulls during the sale, but re-
quest your patience while we sort and get your bulls to
the loading area. Please let the clerks know if you plan to
load out. They will notify the crew and direct you to the
loading area. It would also be helpful if you would con-
tact us in advance if you plan to haul your own so that we
can research health testing requirements for your state.
Annual Bull Cost Per Weaned Calf
Years Bull Used:
Purchase $
1
2
3
4
$2,000
102
43
24
14
$2,500
124
54
31
19
$3,000
147
66
39
25
$3,500
169
77
46
31
$4,000
$191
$88
$53
$36
* 25
cows per bull
