Quality is still in demand, though sale catalogues trimmed

We are now well into this year’s bull sale season as 130 studs nationwide put their best two-year-old bulls forward at auction, private sales and paddock selections.

Based on the number of sheep and beef farms going to forestry recently, breeders have tailored their offerings this year in the expectation of modified demand for bulls. However, exactly how this plays out, how many farms are lost to forestry and what impact that will have on bull demand will be better understood when the current sales season is completed.

Quality is still in demand. Bull genetics remain essential, with farmer selections focusing on herd improvements to fit breeding programmes: purchasers are seeking three to five heritable traits for bulls to attract their interest. 

With sale catalogues trimmed on the back of land use change, breeders are only putting up the highest quality bulls. Added to that, following a favourable summer and autumn, the bulls on offer are in exceptional condition, meaning purchasers have the pick of some of the best cattle in many years.

Substantial returns on weaner sales will be another motivating factor for bull buyers. Investment in bull genetics has shown good returns this year in weaner and calf values, with the top rated stock purchased for finishing changing hands for up to $1300 per head. On such results the premium on good genetics is evident, and these favourable calf cheques are likely to be reinvested in the better bulls. Lamb income has reduced significantly on previous years though is still a major contributor to farmers’ overall profitability, and could therefore also play a telling part. With farmers no longer able to rely on the past five or six years of excellent lamb returns, their capacity to pay high prices for bulls may also have reduced.

The bull sales season ends in early July. 

Callum Stewart, PGG Wrightson Livestock National Genetics Manager