The spring pedigree bull sales have drawn to a close for another year. The 2019 spring will go on record for many breeders as one of their toughest yet. Lack of available funds at the farm gate and an oversupply of pedigree bulls for breeding contributed to the tough spring.

Traditional beef breeds focused primarily on producing bulls for the dairy market have seen unprecedented increases in recent year. The abolition of milk quota and a lucrative export market for female progeny were the main reasons for this growth. However, some of the major breeds associated with this market have seen pedigree numbers double in the last five years. While the national dairy herd has increased, many dairy farmers have not invested in more bull power, opting instead to work the bull harder. As the national dairy herd starts to stabilise, more and more beef AI is being used. Many dairy farmers are now only breeding the top 50% of their herd to dairy AI.

The growth breeds associated with these markets have seen is not equal to demand, hence saturation point is looming.

Brexit negotiations have contributed to the uncertainty.

Low beef prices in the back end of 2018 and well into 2019 meant available funds for farmers to spend were reduced.

All these reasons have contributed to the situation we have today, where good bulls, which breeders have invested heavily in producing, struggle to make €2,500 at auction. At these prices, breeders are not far off selling at cost.

If we as a country are to continue to produce the number of pedigree animals we are each year, around 40,000, then things need to change. At this number, part-time or full-time pedigree breeders will find it very hard to make a living. Carrying a bull for nearly two years to make a profit of €100 is uneconomical.

Breeders need to produce bulls to meet demand, with those failing to meet certain standards killed rather than adding to an already oversupplied market. Not all pedigree bulls born are suitable for breeding. Just because a bull has pedigree papers does not mean he is suitable for breeding.

Bulls should be examined for quality and correctness. Above all else, they should be assessed for functionality. While some societies have implemented vigorous pre-inspections prior to sales, many sales across the country don’t. Purchasers should try to identify sales which have a pre-inspection and fertility tests as these reduce the chance of buying a dysfunctional bull.

However, the societies can only do so much, it’s up to each individual breeder to assess their bulls and cull the bottom tier.

While it might seem great to be getting an extra €200 per head above factory price now, every pedigree bull you sell for breeding you have to stand over. It only takes one bull being returned to take the extra €200, or possibly more, away from each bull you’ve sold that year.

Remember, you’re only as good as your name and you only get one. Reputation of your herd is everything if you want to get into the high prices at sales. Only by consistently bringing out your best will you acquire and retain that reputation.

While it was a tough spring, the one positive that came from it was that those better bulls made money. Some breeders had excellent years due to repeat customers who were happy with what they had previously purchased. Even at sales, the gap between the top end and the bottom started to increase.

Premier sales for some breeds remained fairly steady on the year, in some cases increasing. This is solely down to only the best being allowed into these sales. By maintaining a high standard on quality, top breeders will be rewarded even in the toughest of years.

In brief

Charolais

  • Premier sale in March up €220 on 2017.
  • Struggled with clearance at some sales but fared better than most.
  • Good bulls consistently made money.

    • Limousin

  • Premier sale highest seen in years, but quality matched.
  • Maintained high clearances throughout the spring sales but average sale price generally back between €300 and €600 on the year.

    • Angus

  • Average sale price back €300 on average throughout the sales.
  • Clearance rates also hitting only between 50% and 70%.
  • Clear indication of an oversupply of bulls on the market.

    • Simmental

  • Average back €1,000 on two years with clearances also hit.

    • Hereford

  • Big hit in averages in later sales compared with 2017 sales, >€400.
  • Very tough on clearance rate too bar the Kilmallock May sale.

    • Friesian

  • Average and clearance both back, not as severe.