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Should you spend more or less for a bull?
Bull Purchase Price
Purchasing bulls is a critical management decision. The fol-
lowing 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 in-
creases. 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 warrant the additional price as
compared to a $2,500 bull.
The national sire evaluation system allows producers to
make reasonable comparisons between bulls and groups of bulls
by estimating expected progeny differences for traits such as
weaning weight, yearling weight and carcass weight. These esti-
mates can then be assigned 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 performance.
Reprinted with permission from Cattle-Fax
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
We often get asked how much should we spend on a bull and
the above 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 and
a modest $1.50 per pound value, then the good bull will net $1125
to $1875 per year above an average bull. With an average use-
ful life of 4 years and an equal residual sales price, you can pay
$4500 to $7500 more for the good bull over an average bull without
a loss of profitability. 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:
This older data from 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 600lb calf at $1.50, it only takes a little over 5 pounds per
calf to break-even on the high priced bull. We have consistently
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 replacement quality heifers and average heifers was
$10 to $15 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 bat-
tery contained three bulls from Bieber Red Angus Ranch and two
from the young breeder. The herd runs with one bull per breed-
ing pasture. This customer found out that the Bieber Red Angus
Ranch bulls gave him an average 60lbs 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.”
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 survival 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 original reason we like the Cattle-Fax article was that we
want our customers to understand what 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 competition 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 $3000, to central
points within 300 miles. Volume purchases of 5 or more bulls sell-
ing to one ranch delivered up to 500 miles. All bulls under $3000
and females will be delivered to central points at cost. Central
point for delivery will include auction barns, vet clinics and
ranches that offer to serve as a delivery point. We simply ask for
your cooperation in arranging the delivery of your bulls. This will
keep the bulls from being on the truck longer that necessary and
help to get the bulls to you with the least possible stress and in the
best possible condition.
We are able to load out bulls during the sale, but request
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 contact us in advance if you plan to haul
your own so that we can research health testing requirements for
your state.
