Explanation of Cattle Syndication

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chambero

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Feb 12, 2007
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I'm showing my ignorance here, but can someone please explain how cattle syndication works.

Is there more to it than just a group of people going to together to buy an animal - usually a bull - in order to have the right to exclusive access to him and his semen.  I'd assume there is bound to be more to it than that, but not sure.
 

red

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Jan 20, 2007
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Chambero, when we bought into a syndicate of a bull we paid a fee upfront. We were entitled to a certain amount of semen for 2 years. The bull's semen was not availalbe for public sale for 2 years. After that we were supposed to get a % of the profits of the sold semen minus any marketing. For this bull they had 40 people or farms that could buy either a 1 or 2% share.
Not sure how other syndicates operate. Didn't pan out for us because the bull truned out to be a PHA carrier & just couldn't get a start.

Red
 

justintime

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  Syndication occurs in almost every sale I attend any more, and it occurs when more than two people decide to partner on a bull or female. Some of these work well, and some become textbook disasters. I have been involved in both types. The first syndication I was ever in over 30 years ago, when 10 breeders  decided to partner and buy a 10 year old bull named Four Point Major ( Massive Major) for $10,000. This syndicate actually worked as we made sure we had an agreement in writing that each partner signed and there was also a sizable semen bank that was dispersed amongst the owners right away. Each partner was entitled to use the bull naturally for a specific amount of time determined by a random draw. Although over 30 years have passed, I am still selling semen from this bull. I am now sold out and sold 70 vials this spring alone.This syndicate was probably one of the best $1000 I ever invested in the cattle industry.  I also own numerous females in syndicates but it is just as important to pick your partners as it is to pick the animal to be syndicated. Also, make sure each partner gets equal rights, as sometimes the seller of the animal will become a partner in the syndicate then expect to call all the shots after the animal is sold.  Some syndicates are no more than "executive petting rights", that is you fork out a big lump of money to become a memeber of an exclusive club that owns a cow or two..... and if you play your cards right, you may be allowed to pet her once in awhile, or maybe even get you picture taken with her. I have been in several syndiactes that have been very good to me, as they allowed me to share some risk and investment dollars with others.
If you have full trust in your partners, syndication can be a great way to add top line genetics to your herd, especially through ET and semen sales. Make sure you are very clear on what additional costs there will be and what you can expect in return.... and you have to do this before you agree to be a part of the syndicate.
  I could write a few chapters about a few of the syndicates that I have been in, that did not work.... and almost every time, it didn't work simply because of some of the people who were involved. As my gerandfather used to say.... " the more I deal with people.... the better I like cows"
Syndication is not something you should agree to without careful consideration of what the deal actually is. If possible, hand pick your partners and set up the rules and regulations early.... not as the cow approaches the sale ring to sell.
 

knabe

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hmph,  found this looking up four point major which i couldn't find

http://www.matlockshorthorns.com/index.html
 

TJ

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May 15, 2007
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justintime said:
  Syndication occurs in almost every sale I attend any more, and it occurs when more than two people decide to partner on a bull or female. Some of these work well, and some become textbook disasters. I have been involved in both types. The first syndication I was ever in over 30 years ago, when 10 breeders  decided to partner and buy a 10 year old bull named Four Point Major ( Massive Major) for $10,000. This syndicate actually worked as we made sure we had an agreement in writing that each partner signed and there was also a sizable semen bank that was dispersed amongst the owners right away. Each partner was entitled to use the bull naturally for a specific amount of time determined by a random draw. Although over 30 years have passed, I am still selling semen from this bull. I am now sold out and sold 70 vials this spring alone.This syndicate was probably one of the best $1000 I ever invested in the cattle industry.  I also own numerous females in syndicates but it is just as important to pick your partners as it is to pick the animal to be syndicated. Also, make sure each partner gets equal rights, as sometimes the seller of the animal will become a partner in the syndicate then expect to call all the shots after the animal is sold.  Some syndicates are no more than "executive petting rights", that is you fork out a big lump of money to become a memeber of an exclusive club that owns a cow or two..... and if you play your cards right, you may be allowed to pet her once in awhile, or maybe even get you picture taken with her. I have been in several syndiactes that have been very good to me, as they allowed me to share some risk and investment dollars with others.
If you have full trust in your partners, syndication can be a great way to add top line genetics to your herd, especially through ET and semen sales. Make sure you are very clear on what additional costs there will be and what you can expect in return.... and you have to do this before you agree to be a part of the syndicate.
   I could write a few chapters about a few of the syndicates that I have been in, that did not work.... and almost every time, it didn't work simply because of some of the people who were involved. As my gerandfather used to say.... " the more I deal with people.... the better I like cows"
Syndication is not something you should agree to without careful consideration of what the deal actually is. If possible, hand pick your partners and set up the rules and regulations early.... not as the cow approaches the sale ring to sell.

If you have a bull calf that is good enough to be syndicated, how would be the best way to make that happen & what advice would give regarding wording the contracts?
 

jason

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In this case I might get a lawyer to write the contact because it would seem to be fairly complicated especially when dividing all the rights up.

You need to look at other bull syndications, find out how they set it up, how successful it was and build your own syndicate program.
 
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