Hidden costs add up in bull breeding

But it could easily be argued they earn every cent.

In the past decade there have been plenty of new costs sneaking in from semen testing to new health guarantees to genomic testing.

COVID also proved it was possible to buy bulls from anywhere in Australia through videos and photos and an online selling platform, but many studs enlist professionals for this marketing which all comes at a price.

ACM Agri has used a range of sources to get a handle on some of the costs and from this it is not hard to see how the base price for bulls at auction needs to be $6000 or more once you also consider registration costs with breed societies, feeding and genetic costs.

Pathfinder stud principal Nick Moyle says there are considerably more costs involved than a decade ago but accepts it is all part of running a successful seedstock business.

"Breeding Angus cattle is an obsession for us, a lot of research goes into trying to breed a better one or the best one," he said.

"We don't spend a lot of time thinking about how much it is costing as long as we are not going broke doing it."

Their 2000 stud cow herd are all involved in an artificial insemination program with semen from often expensive bulls and only but he says it is the labour to manage these cows that adds up. Those females could be in the yards up to 10 times a year as well as many paddock movements.

The Pathfinder team also spend hours recording measurements for an increasing number of traits throughout the animal's life or collecting DNA from each bull to increase the accuracy of their Breedplan figures.

One of the hidden costs according to Mr Moyle is bulls that don't make one of their three annual sales, at Penshurst, Vic and Naracoorte and Roma, Qld.

"Only the top half of our bulls make it to one of our sales and then we sell another 20-25 per cent (in the paddock) but the other 25-30pc are sold as steers so they are an expensive steer," he said.

In previous years they have supplementary fed their bulls with some hay and grain but he says they have moved away from the industry standard with their sale bulls all 100pc grassfed, a combination of high performance pastures and forage crops.

"There will be a benefit from saving on feed but the main driver is increasing the longevity and the value of these bulls for our clients ," he said.

"The working life of an Angus bull in Australia is only 2.3 years but we think we can do better, if we can reduce the weight of them and still have the best genetic packages these bulls will go out and work for longer with less injuries."

As competition has grown Angus stud breeders have also offered more including free freight or a few months of free insurance.

Ben and Samantha Glatz, Glatz Black Angus stud, Avenue Range and Branxholme, Vic, are even offering a three year guarantee on all its sale bulls which Mr Glatz insists has not come at a financial loss to their business.

He says the cost to produce and prepare their bulls for sale has not increased dramatically but the added point of sale marketing and buyer assurances such as fertility testing, videos, online selling platforms, hard copy catalogues and print advertising have risen most.

The greatest input to their stud business according to Mr Glatz is the "seven day a week" effort needed from continual observation of stock, extensive collection of accurate data and making sound decisions which enable their clients to be as profitable as possible and servicing their clients. He says this is hard to put a price on.

"The average life of a cattle stud is around seven years. If your heart is not in it, you are not in it," he said.

Bull breeding remains a profitable business for Woonallee Simmentals at Furner but in the past five years Tom and Lizzy Baker have gone from offering 150 bulls to 280 bulls a year which has spread some of their fixed costs.

Mr Baker says the stud industry has worked hard to present bulls reaching their maximum potential largely off grass which has reduced some of the feeding costs but there have also been a big rises in the cost of importing genetics as well as marketing costs from videoing and photographing every bull to expanding their advertising reach from largely the South East to Australia wide.

"We are working a little differently in the United States sourcing genetics for our Black Simmental program but the cost of importing genetics has doubled in the past three years," he said.

All of Woonallee's stud heifers are AIed, along with about one quarter of their stud cows as well as 150 embryos implanted each year into recipients. He says it adds to the cost of their breeding program but is well worth it proliferating some of their elite genetics.

"Whether it be through genetics or accessing better data from genomics and other figures there is no doubt that we are all getting better at what we do because the market has dictated we have to," he said.

"Breeding seedstock you have to have the passion, you have to have the drive and be able to ride the ups and downs."

Hills Farm Supplies managing partner Anthony Pearce says the aim is not to have overfat sale bulls but ones which are "fit and healthy" and ready to work,

Costs can vary depending on the season conditions but typically he says they recommend to their bull clients a four month controlled feeding program.

This comprises a couple of months during the autumn prior to the sale to ensure the bulls keep moving forward and then two months of finishing prior to sale.

He says a stud breeder feeding silage or good quality hay, based on current prices, could expect a bull to eat about 15kg of dry matter per day which he has costed at between $4 and $5/day or up to $6/day depending if it is homegrown or bought in fodder.

A total mixed ration was more costly at about $6.30/day for a ration comprising 60pc forage and 40pc grain or for an 80pc forage ration about $7.10/day, but also included additives such as antioxidants and chelated minerals for feet health and to maximise fertility.

"Our recommendations are slow and steady weight gain and not pushing bulls but with the season we have had where the spring was short some people would have chosen to start feeding earlier and that comes at a price," Mr Pearce said.