Why:
Just because a fellow producer says, "If you collect that bull I want some semen." Don't believe that is enough reason to spend $1000 to $3000 on collection costs. They may only want one straw.
A new producer called me and said they had a really good bull. They were going to collect him and sell a lot of semen. I ask if they had clients who were ready to buy? Have they marketed semen before? ...and the answers were no. Not a good way to start this business.
It is a unique business. Not everyone wants to mess with small semen orders. When Cowboy Tuff Chex was first offered there was a 10 straw minimum at $300 per straw -- that was a nice business. However selling 1 to 5 straws at $20 each might not be as much fun.
Prepay:
If a semen buyer is really serious, ask them to prepay for semen before collection. A nice prepaid order takes the gamble out of the collection decision.
Some Bulls Don't Collect:
A certain percentage of bulls who may breed big herds in the pasture may not collect. There are numbers of reasons. A one time ranch collection may be inconclusive. Most quality semen is collected at semen centers with labs capable of careful analysis, with multiple collections and professional evaluation. If it isn't high quality, the professional labs always discard the collection.
The Risk:
Taking a valuable bull to a new facility where a hundred bulls are housed -- where care takers and handlers may not be experienced with Texas Longhorns, is a serious decision. Some collection centers have a reputation of working with wild deer and all kinds of bulls. They have professional experience with a well trained staff. Others may not. If a valuable bull gets spoiled by poor handlers, it may be a non-reversable problem. If he is housed near a cement wall, maybe a feed bunk against a wall, horn tips can be worn off, never to return. There are a lot of things to consider. Will your bull be stalled near another bull & wear off horns sparring through a fence.
Pricing:
What is semen worth? Very special bulls that offer extreme values can be really high. Phenomenon semen has sold for up to $1000 per straw for the last 10 years. Very little is available. Semen from Jamakizm has sold in abundance for $1000 per straw. Clear Point, a 2245 lb. bull with huge horn siring records, sells for $500 per straw. These high prices are rare -- so rare it may never happen in most breeds.
Craig Perez of SEMEN HUB, from his years of experience says, " Most SH orders are an average of 3 straws (1-4 straws). Most bulls will never sell 50 straws. For every 10 bulls collected, one will dominate 80% of semen sales. One bull will capture another 10%. Six of the bulls will fight it out for the remaining 10%. Two bulls will never sell a single straw."
To pick a price, if there are several brothers, like sons of Cowboy Tuff Chex, unless one comes along superior to all the other sons, the semen price should market about $35 to $50. There are dozens of them, all very similar. One more might be a hard sell. Always consider rare genetics, and not-so-rare when arriving at a real value semen price.
Anchor D Ranch Semen:
In the eighties, Richard Robbins, Jr, of Belvidere, KS, took all of his bulls from Anchor D Ranch to Rocky Mountain Sire Service and had them collected -- a total of 18 bulls. Straws totaling 24,767 were collected and none were offered for sale during his life. He faithfully paid storage fees to RMSS of 2.6 cents per straw per month -- totaling $278,182 during the 36 years. His collection costs were $99,068. Mr. Robbins was a fan of WR, Yates, and Niobrara bloodlines. He believed these genetics would have great value at a later time. In March, 2019 his estate liquidated the semen inventory at the B & C Sale and received bids of $125 for two packages of over 1000 straws each. It was about a dime per straw.
The hidden cost of semen is storage. It seems minimal, but it can, as the Robbins Estate found, run into big money.
Semen Storage:
The most economical way to preserve semen is a liquid nitrogen storage tank held in a secure place on the ranch. A new tank costs from $850 to $1300. A large tank would hold 3000 straws and would need recharging with liquid nitrogen every 4 months.
Semen collection centers will store semen. They also have a service provided of shipping semen for their clients. An arrangement with the semen center to store and ship sold product is what many do. Very few collection centers will assist in marketing. Bovine Elite at College Station, TX is one of the few to offer a marketing service.
Obligation to Promote:
When semen is sold, the sire owner has a responsibility to promote the bull. If the semen buyers have no market for calves, then semen sales will quickly drop. Very few bulls are outstanding enough to retain family value without continued efforts with national promotion. Knowing the promotion plan for a bull is a reason to buy, or not buy semen. If the semen producer doesn't promote the bull, the progeny value will decrease.
Maybe Don't Collect:
What makes your bull special compared to other bulls in the market? Call knowledgeable producers and ask if your bull has the value to collect. Ask if they would buy semen?
Take some time to focus on your herd. Breeders will judge your bull's production based on the calves he sires. If he doesn't produce outstanding progeny with your cows, breeders will assume he will not produce well with their cows.
Unless a bull offers some special genetic value, some unique quality, some proven consistent family value, maybe it is not a good idea to collect. If the bull considered for collection can be replaced with as good or better bull, or if semen is available on other similar, superior bulls -- semen collection might be a sketchy financial venture.
