A $23 million payday for the AngusNZ breed has seen over 1946 bulls sold this season, with the top price record falling not once but twice, just days apart.
With just a few days of autumn bull sales to go, the top prices and averages of many breeders’ are up considerably on the past few years, with a national average of $11,900.
The top priced bull so far this season was sold at the Tangihau sale in late June for $161,000. The sale average hit $24,880 and 48 bulls sold out of 48.
On the previous day, the top priced Cricklewood bull reached $156,000 with a similar average of $24,357 for 13 bulls sold of 13 offered.
Past president of AngusNZ and new honorary life member John Cochrane says it’s a really positive news story for the AngusNZ breed.
“Demand for AngusNZ bulls is obviously outstripping supply at the moment and we are seeing prices go up and up.”
With the conversion of farms to forestry, the Southland farmer says that commercial cow numbers are not growing but AngusNZ bulls must be replacing other breed bulls in commercial beef herds.
“”I wouldn’t say anything derogatory about other breeds or bulls, but the strength of the AngusNZ market and the Angus product at the moment is leading commercial farmers to invest in black AngusNZ genetics.”
“When you go to a restaurant, or even to a burger joint, you can see Angus (or maybe Wagyu) on the menu and that resounds with people, and builds the marketing story,’” he added.
“When commercial farmers are selling black weaners and steers, there is a good demand and premiums paid – in the saleyards, in the feedlots and by the meat processors.”
Farmers are observing what’s happening in the marketplace and are investing in good AngusNZ genetics.
John also commended the breed on being one of the first to adopt DNA technologies which means buyers can be sure they are getting accurate data.
“The AngusNZ seedstock producers have put a huge effort into their breeding programmes and the prices they are receiving are a testament to their investment in technology and a real vote of confidence in their drive for balanced genetics.”
“The new confidence in genotypes combined with strong phenotypes means the commercial guys are prepared to pay up to $20,000 for a good commercial bull.”
“And the stud guys are seeing those results and are prepared to invest heavily in stud sires to maintain a great pipeline of genetics for the commercial farmers.”
Return on investment is great with weaners selling for $1200 each – John says with a $15,000 AngusNZ bull investment the calf breeder only needs to sell 13 calves to pay for the bull and potentially with a lifetime of 4 years of sire duties covering 40-50 cows each year and a disposal value of up to $3,000, buyers can buy bulls with real confidence.
Using a growing social media presence pushing the success stories and with the likes of young AngusNZ people being seen on mainstream TV channels all feeds into the marketing and pushes the momentum and success story along.
AngusNZ is definitely the flavour of the month and the number of bulls sold has increased year on year for the past 5-10 years, John said.
“When I used to fly up to meetings and AngusNZ events I used to ask town and city folk I sat with on the plane which breeds of cattle they were aware of and often they could only name the Angus.”
“It’s a good positive story showing real confidence in the beef industry and we need positive stories at times like these.”
More? Look out for more sale reports and commentary in the AngusNZ Spring magazine.