CHOOSING a seedstock producer is one of the more important decisions facing commercial cattle producers each season.

Years ago at a bull breeder’s field day, a prominent seedstock producer reminded producers that they needed to choose seedstock breeders with a vision, “because if they were going nowhere, you will go nowhere with them,” he warned.

That advice is as relevant now as it was when delivered 15 years ago.

During a recent webinar for southern beef producers, the topic of sale value of bulls was raised. One of the audience participants questioned the perception of value and if it was driven by reputation or by genetic merit.

In further discussion, the issue raised by this producer was focussed on increasing the level of competition at a bull sale and with this increased competition would there be an increase in sale price. More specifically, was it the reputation of the breeder or the genetics on offer that would drive the competition?

There are several ways to consider this issue.

“Leading genetics does not automatically equate with a high reputation. However, high reputation is generally associated with leading genetics.” 

Accessing and offering leading genetics should be the primary focus of all seedstock producers. The availability and quality of genetic information derived from performance recording and now genomics allows seedstock breeders to both identify, reproduce and offer the industry animals that will increase performance above the average for a breed.

The Bush Agribusiness “Top Studs” annual publication (see separate story in tonight’s genetics alert) focusses on bull breeders across a range of breeds who are meeting this expectation. The criteria of a Top Stud according to the publication is to not only use BreedPlan (and have at least one selection index) but to record a minimum of 50 animals and to have their 2021 (and this year 2022) drop average or equal at least one breed index.

Defining reputation

As a way of identifying sources of leading genetics, this is a very clear and objective starting point for any breeder. It is worth noting that while these criteria are very clear, it is much harder to define reputation. Indeed, it is possible that a new seedstock prefix could emerge and meet criteria defining a Top Stud by purchasing a large number of registered animals from a variety of sources.

For many producers wanting to start developing a seedstock program, this can be a very effective course of action. It can often be quicker to work up to a scale of operation to sell bulls than may be possible by grading up through in herd selection and registration.

Whichever way a seedstock producer chooses to achieve the scale of size register at least 50 animals on BreedPlan, reputation is not as easily acquired.

Over the past two spring bull selling seasons, it is clear there are some prefixes that have achieved a higher degree of reputation across the broader industry.

As a result, these operations do tend to draw greater numbers of potential purchases and so enjoy clearance rates and averages that are higher than the industry averages. It is true these programs are underpinned by leading genetics. However, there is more to developing reputation than simply genetics.

In most cases, the operations that enjoy strong reputations are characterised by some similar features:

• They have very clear breeding objectives and offer consistency in their animals and direction.
• They are very focussed and invested in their clients’ successes and are engaged within the broader industry.
• Almost all have extensive commercial operations and are willing to showcase their genetics in industry programs.
• In addition, these breeders are engaged in their industry and breeds, promoting networks and learning opportunities for producers and future generations.
• And these breeders are also very skilled promoters and marketers of their programs.

There are certainly some very highly regarded seedstock programs that do not necessarily follow these trends. Their reputation is embedded in local credibility and in strong client support and loyalty.

However, in difficult seasons, strong local reputations may not be enough to attract competition from broader distances. Similarly for new seedstock prefixes looking to grow a client base and attract recognition from producers may find the process more extended than expected.

Opportunities with smaller, less well known studs

At the same time, there are opportunities for commercial producers seeking leading genetics who may not want to, or can afford to compete for bulls offered by higher profile or more recognised prefixes.

There is opportunity to acquire similar genetics, without the high competition, by seeking to purchase from newer or smaller bull breeding programs.

It may be possible to use publications such as Top Studs, or to review sale catalogue listings on breed society websites to identify these newer studs that have yet to develop the high degree of recognition enjoyed by older more established programs.

While this can be an effective option, it is worth making time beforehand to start the process of developing a relationship with the seedstock operator.

As a new seedstock breeder, their breeding objectives and direction are possibly not well known. It is worth understanding their direction and considering how this aligns with your own long-term direction.

Ultimately, reputation and recognition are the results of a seedstock breeder’s focus on both genetics and on those aspects that also add broader value to the industry.

For newer programs seeking to create demand and grow the value of their genetics to the industry, including industry engagement in multiple must been see as a key part of reputation and long-term value.

Alastair Rayner is the General Manager of Extension & Operations with Cibo Labs and Principal of RaynerAg.  Alastair has over 28 years’ experience advising beef producers & graziers across Australia.   He can be contacted here or through his website www.raynerag.com.au