AI stud/bull interest

Help Support Steer Planet:

#1 showman

Active member
Joined
Dec 11, 2010
Messages
35
I had a few questions about AI studs and interests in them. First I was wandering the economics of the situation. What would a decent interest sell for? Whats it cost to keep a bull at a collection center? What can they produce? Basically what is the cost vs. income? I was also wandering if you bought an interest from a large producer like Lautner, Trausch, or anybody else and they kept pocession and such, how would the semen be devided? Would they sell the semen for you and in turn send you a check for your share minus the expenses or would you get strictly your share of the semen then get billed at the end of the month? I am just wandering. Its something I have tought alot about and never really heard or seen anything about it. Thanks.
 

ZNT

Well-known member
Joined
Apr 25, 2007
Messages
1,006
Location
Rhome, TX
If you own/raised the animal, and are looking to sell semen interests, then it is completely up to you the terms and conditions.  As we have seen with bulls like Bojo, a clearly written contract that covers many of the potential issues is a must.  Make sure the liabilities, as well as the income are covered in the contact.  Lot's of expenses are incurred when promoting and collecting a potential A.I. sire, so if you are not able to front many of these costs, then expect to take a smaller share of the revenue if you are counting on one of the major players to float the cost. 

I figure $2.50-3.00 per straw in expense to have the semen collected and the bull boarded during the collection process.

Key points to be covered in a semen interest contract:
Who pays for advertising?
Who pays for collection?
Who has physical ownership of bull?
Who has leasing rights?
Who has future genetic rights to bull?
How much semen does each partner get for herd use?
What percentage of semen sales does each partner receive?
Are expenses billed, or subtracted from semen sales?
Who pays for insurance, and who receives premium if something happens to bull?

This is just a short list of issues that need to be addressed in a semen interest contract.
 

aj

Well-known member
Joined
Jul 5, 2006
Messages
6,420
Location
western kansas
I was wondering if there was a compilation of semen sold in one year.....for all breeds in the us or world or whatever? What is the sales estimate for semen sold in a year.......dollar wise. Breed wise.....market share......? Is it an expanding market....shrinking market....? Club calf market share compared to industry numbers.
 

bluffcountrycattle

Well-known member
Joined
Mar 27, 2008
Messages
383
Location
SE MN
I know of an Angus breeder that owns 1/3 interest in a popular Angus sire...with the royalties from semen sales and certificates, IN ONE YEAR, paid for a JD 7530 tractor, Chevy truck and Wilson trailer!!  :eek:
 

iowabeef

Well-known member
Joined
Aug 24, 2009
Messages
1,047
Location
Iowa
I would say "buyer beware" on entering any such deal.  Do your homework and really trust who you are working with.  We all hear the stories in the industry.
 
Top