The 2022 bull sale season is steaming ahead, with average prices in August maintaining the rapid pace established in July. AuctionsPlus bull numbers were up 18% on last year, with 4,759 bulls offered on the platform during August. Vendors sold 4,485 of those bulls, to reach a clearance rate of 94% and an average price of $15,623/head – up 16% from the same period last year ($13,458 /head). Average bull prices remained resilient from July to August, relative to the volatility in the commercial cattle market, with the Eastern States Young Cattle Indicator (EYCI) falling 126c in July, then rising 140c in August. The nation-wide audience of online bidders had a strong presence once again, with an average 54% of lots receiving online bids and 26% of lots selling to online buyers.
Plotting the number of bulls sold at each price creates an interesting curve, with most bulls selling for $16,000 (Figure 1). Just 10 of the industry’s leading bulls sold for more than $50,000 – topping at $110,000 for Waitara GK Safekeeping S56 and including the record Shorthorn price of $85,000 for Futurity Rapid Gain R322.
Breed Breakdown
Angus accounted for 68% of all bulls sold on AuctionsPlus in August, setting a cracking pace with an 18% increase in average prices on last year. Shorthorn bulls went from strength to strength, taking out the highest average price in August 2021 and 2022. Limousin bulls experienced the strongest growth, increasing 26% year-on-year, to $11,554/head.
Angus Analysis
There are some interesting insights to be gained from delving deeper into sale data for August, specifically for Angus bulls. There is an apparent price premium for bulls conceived by advanced breeding technologies such as Artificial Insemination (AI) and Embryo Transfer (ET). AI and ET allow breeders to access the best genetics from all over the globe and increase the influence of the top animals in their herd. Naturally conceived Angus bulls averaged $14,990 across 1,291 bulls sold in August, while the 1,299 AI conceived bulls averaged $17,385/head, with the 326 ET conceived bulls averaging $19,538/head.
Interestingly, there is no significant difference between Angus bulls recorded on the Angus Performance Register (APR) and the Herd Book Register (HBR). 912 APR bulls averaged $16,968/head, while the 1,991 HBR bulls averaged $16,387/head. However, bull buyers were willing to pay more for an older bull, with bulls born in 2020 averaging $17,223 across 1,966 bulls, while those younger 2021 bulls averaged $15,224/head across 948 bulls. Buyers were also willing to pay more for bulls that had been parent verified, that is, DNA testing has confirmed the pedigree of the bull. 248 Angus bulls that had not been parent verified averaged $14,232/head, while 1,529 Sire Verified (SV) bulls averaged $15,992/head, with the 1,137 Parent Verified (PV) bulls averaging $17,862/head.
Heifer bulls
Heifer bulls have been in strong demand this year, as producers gear-up to join a higher proportion of heifers to accelerate herd rebuilding intentions. Bulls recommended for use over heifers by stud principals are subjectively classified, based on birthweight and calving ease EBVs, phenotypic traits, such as narrow shoulders and actual birthweight. Analysis of average prices achieved at varying levels of birthweight EBVs shows an 8% premium for bulls with a birthweight EBV of less than the Angus breed average of +4.1 (Figure 3). The 1,508 Angus bulls with birthweight EBVs under +4.1 averaged $17,199/head, while the 1,405 Angus bulls with birthweight EBVs of +4.1 or higher averaged $15,895.