13th April 2002

A surplus of beef bulls?

By John Shirley

Given the expansion in Charolais (5,000 bulls) and Limousin (3,000 bulls) breeding, it is likely that there are at least 12,000 pedigree bulls of all breeds competing for this contracted outlet.

This competitive market is quite obvious at a lot of sales in recent weeks. There is good competition for the best animals but a long tail and slow bidding for the remainder. Last season the FMD was blamed for the slowish market for beef bulls. This was a factor but underlying this was a more fundamental change where supply was beginning to exceed demand.

This situation is painful for breeders that have invested in pedigrees, especially the more recent investors. However there are opportunities. There is the opening for a beef or dairy farmer to acquire a bull at lower cost.

Also an oversupply situation gives each breed the option for breed improvement through culling, a practice that should be ongoing in any event.

From the breeder's viewpoint it makes commercial sense to cull the bottom animals and place them on the beef market rather than add to over-supplied pedigree sales.