Factors influencing the price paid for herd sires.

Abstract

Animal Production in Australia FACTORS INFLUENCING THE PRICE PAID FOR HERD SIRES P.C. VENAMORE*, W.J. TAYLOR* and T.H. RUDDER* SUMMARY Stud registration status had the largest and most consistent influence on prices paid for Brahman bulls from three studs at their annual auction sale. Red bulls from one stud returned higher prices than grey bulls. tendency was not apparent for bulls from the two other studs. This Amongst herd bull buyers there was a tendency to pay a premium for liveweight of $9-$10 per kg increment for bulls offered by two of the three studs. Pric es for bulls offered by on e of the studs increa sed by $81-$85 for each pert entag e point increase in weightfor age ratio depend ing on registra tion sta tus. Weight for age ratio had no effect on the price paid for bulls from the two other studs. INTRODUCTION Traditionally,selection of breeding cattle has been based on breed standards of excellence and this method has been continually reinforced through stud advertising in the rural press. These methods of assessment are based on pedigree, conformation and size, within the colour of the particular breed, with little regard to age and environmentalhistory. Differences in conformation are due primarily to differences in fat cover and muscle quantity and distribution do not vary markedly over a wide range of cattle with apparently differing conformation (Wythes and Ramsay 1979). Studies have shown that selection for weight for age at 18-24 months can be used to improve productivity (Seifert 1975; Mayer et al. 1980). Other researchers have shown within-breed variation in ability to cope with environmental constraints (Seifert 1971, 1977; Turner 1979). These data form a strong case for selection of bulls under environmental conditions that reflect commercial practice, using weight for age as the primary criterion. This approach is being encouraged by extension officers and innovators associated with the beef industry. This paper report s f actors influ encing price paid for bulls sold bY auction at sales conducted by thr ee studs provid ing weight for ag e ra tios. MATERIALS AND METHODS The bulls used in this study were from three well known Brahman studs. These studs have provided performance ratios at 18 and/or 30 months of age for their past six annual auction sales held at Rockhampton, Qld which is a major selling centre for tropically adapted breeding cattle. The datawe r e from bulls pr esent ed for sale in 1980. Inf ormat ion the sale cata logu e inclu ded age, weig ht for age ratio, colour, horn and J=g istr at ion status. Pr ices recei ved wer e r ecorded and assessment of t tes tic1 e size, and sheat h wer e mad e by on.e 0 f the authors (P.C. V.) dur sale. Sale live weightof the bulls was recorded prior to the sale but available to purchasers. taken from stud emperament, ing the was not * Beef Cattle Husbandry Branch, Rockhampton. 389 Qld 4700. Animal Production in Australia Data were analysed by least squares methods(Harvey 1960) to determine the influence of colour, horn and stud registration status, weight for age ratio and sale weight on price. Because prices were skewed, a log transformation was necessary. Colour was categorised as pure bred herd registered stud Herd bulls were known. either grey or red, horn status was horned or polled with scurs polled. Registration status was categorised into stud registered, bulls, and herd bulls. Pure bred herd bulls were those from a herd but had not been registered in the breed society records. straight breed bulls with unknown parentage or only the sire Temperament, testicle size and sheath acceptability were recorded in three categories. At sale the bulls weighed 692 2 65 kg standard deviation (59 bulls Stud One), 691 2 14 kg (61 bulls Sta Two), and 673 + 59 kg (22 bulls Stud Three). RESULTS AND DISCUSSION Preliminary analyses showed there was little variation between bulls in temperament, testicle size, and sheath structure. This was to be expected because bulls that showed any departure from the accepted normality were culled prior to sale. Two studs presented both horned and polled bulls. There was no difference in price paid according to horn status. This may suggest that buyers put little value on polledness in Brahman bulls. Age had no significant effect on price. Most bulls were three yearsold with a few two year and four year old bulls. This suggests that within this range buyers considered other factors to be or overriding importance. Buyers of bulls from Stud One showed significant (Pc.05) preference for red bulls over grey bulls ($4,440 VS. $3,307). There was no price difference on the basis of colour for bulls from the remaining studs. This is consistent with the presale advertising, e.g. the Brahman News Annual (September 1980). This suggests that a sufficiently large proportion of buyers may be influenced by advertising. They could be prepared to pay for either aesthetic values or purchase in the hope of breeding bulls for future sales on the basis of colour. Registration status had the highest and most consistent effect on prices. For Stud One the prices of stud registered, pure bred herd bulls, and herd bulls were $5,359, $2,769 and $3,321 (Pc.005) respectively. For Stud Two the prices were $4,972 and $3,220 (PC .005) in the same sequence with no herd bulls represented. Stud Three prices were $3,854 and $2,445 (Pc.005) for stud registered and herd bulls. Across the three studs the premium paid for stud registered bulls over the two other categories was approximately $1,950 per head. Possibly these buyers were paying in the anticipation of breeding registered bulls for sale in the future. Buyers of bulls from Stud One paid no premium ratio or liveweight amongst the stud registered or the herd bulls price increased $9.24 + 3.08(SE)for (P4.05) but there was no effect of weight for age for increases in weight for age pure bred herd bulls. Amongst each kg increase in liveweight ratio on price. In the case of Stud Two there was no premium paid for weight for age ratio or liveweight increases for stud registered bulls. Amongst the pure bred herd bulls 390 Animal Production J'n Australia ther e was a Pr emium of $9.67 + 2.37 (SE) for each kg increase in liveweight (P(.OO5) but no prem i.umfo r incr ements-in weight for age ratio. Stud registered and pure bred herd bulls from Stud Three yielded a premium + of $80.53 - 21 JO SE (P( . 005) and $84.73 + 15.36 SE ( P C . 005) for each Per centag e poi nt incr event in weight for age ratio . Th is wa s the only stud that featured this measurement prominently in advertising (Brahman News Annual September 1980). Additionally this stud co-operated in a field day when weight for age ratio was explained using live exhibits. This occurred approximately six months before the sale. Seifert et al. (1980) described relationships between price and performance in most cases of sales of Belmont Red bulls between 1974 and 1979. The value of performance recording is widely advocated by vendors of Belmont Red bulls involved. The results obtained in this observation show criteria feature prominently in determining price. advertising influences buyers. If this is the case, selection criteria will depend on equally widespread information showing economic benefits. ACKNOWLEDGEMENTS Assistance freely contributed by colleagues is gratefully acknowledged. In particular thanks are due the the three producers who co-operated in this study. REFERENCES HARVEY, W.R. (1 960) . U nited States Department of Agriculture, Agricultural Resear ch Serv ice, No. A.R.S. 20-8. MAYER, B.G., BARNETT, R.A., HALL, W.J.A. and TAYLOR, W.J. (1980). 106:362. SEIFERT, G.W. (1971). Aust. J. Agric. Res. SEIFERT, G-W. (1975). Aust. J. Agric. Res. 22:159. 26:1093. Qd. Agric. J. that traditional selection They also suggest that adoption of objective promotion which includes SEIFERT, G.W. (1977). 3rd International Congress of the Society of Advancement of Breeding Researches in Asia and Oceania (SABRAO), Canberra, February, 1977. 7-4. SEIFERT, G.W., BEAN, K.G. and ASPDEN, W.J. (1980). Vol. C 13:504. Proc. Aust. Soc. Anim. Prod. TURNER, H.G. (1979). Proc. of the Inaugural Conference of Aust. Assoc. Anim. Breed Genet., Armidale pp 56-59. WYTHES, J .R. and RAMSAY, W.R. 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