First it was LIQUID GOLD that caught everyone’s attention when GenerVations released him and his brothers in a limited offering for $750 and $500 (Read more – $750 Dollar Semen! Are You Crazy?). That gave all breeders the chance to have equal access to early release semen, instead of playing favorites with preferred herds or contract mattings. Now it’s GOLDEN PP, Kulp-Dale Golden PP-Red that is getting everyone’s attention. When his first five units of semen sold for $50,000, it generated heaps of discussion around the industry.
The Dairybullsonline Story
To get a better understanding of the GOLDEN PP story, it’s best to trace it back to its roots. In March 2011, Bryan Quanbury and Roy MacGregor started DairyBullsOnline (Read more – They’re Sold on Polled!!) by developing their website, www.dairybullsonline.com and placing the ad at right in the major dairy publications.
You see these two risk takers had spent many years in the dairy industry and they were very confident that polled was more than just the new red (Read more – Is Polled The New Red?). They were not only confident that the market would come to demand polled genetics, they wanted to be at the front of it (Read more – Polled Genetics: Way of the Future or Passing Fad). Recent sale results have confirmed that they are achieving their goal (Read more – An Insider’s Guide to What Sells at the Big Dairy Cattle Auctions).
What these two men saw was a different way to sell and promote bulls. Leveraging a different distribution model compared to traditional Artificial Insemination companies, Dairybullsonline.com was looking to be more of your amazon.com than your Wal-Mart (Read more – A Wake-Up Call to All A.I. Companies). As well, they could offer a larger portion of the revenues back to the breeders of the bulls who had been forced to sign very limiting contracts in the past (Read more – Top 10 Questions to ask Before You Sign That A.I. Contract) Hence they developed the ad to attract breeders who were looking for a change.
The Golden PP Story
It was this wanting to partner with breeders and to become champions for polled that led them to help in arranging the sale of Kulp-Dale Snow Gold (Sister to Golden PP) from Kulp Genetics to Benner Holsteins, Steinbach Manitoba. The trust they built up while working with Kulp’s earned them the privilege of sampling and marketing Kulp-Dale Golden PP-Red.
GOLDEN PP came back with high initial genomic index tests. With bulls you are only able to see genomic results every proof round compared to genomic indexes for heifers are released monthly. Both Dairybullsonline and Kulp’s had to wait to see if they would indeed have the #1 Homozygous polled bull in the world. When Elm-Park Geisha PP-Red topped the World Dairy Classic sale (Read more – World Classic 2012 Highlights) with lower genomic numbers than Kulp-Dale Golden PP Red, they were sure he could be the highest PP bull.
The Power of Social Media and Smart Business Decisions
Now here is where the story takes an interesting turn. While we were working on preparing a Facebook page to help promote GOLDEN PP, things started to swell. First breeders from all over the world started “liking” the page, while it was still being developed. Then the most unexpected thing in the world happened. They were offered $50,000 for the first five units of semen.
The offer was made by Jerry Jorgensen of Ri-Val-Re Holsteins. The offer came with the condition that no other semen could be sold or used outside his herd for 90 days. This effectively guaranteed that he would have the first progeny on the ground. Even more importantly, his progeny would most likely have a full proof round on the index lists before others would be on it.
Now $50,000 is a lot of money, “How can he ever make it back?” you ask. “Especially on five doses?” Take a closer look.
Let’s say he uses those five doses for IVF. That means he can flush about five different cows 5 different times, or for a total of 25 flushes. Now let’s say that he averages 10 eggs per flush. That would mean that they have about 250 eggs. (Note: On the first round of flushes, Ri-Val-Re made 77 transfers off one unit of semen from nine donors). They would only need to get about $200 more per egg to break even. This is very achievable for a herd that already has some of the top gTPI B&W, R&W, and Polled Genetics.
Take it one-step further.
Let’s say they were to implant all these eggs and end up with 120 pregnancies. If 60 are female, that means they would only need to get $1,000 more at the time of sale. And that does not even factor in the potential revenue that having the next GOLDEN PP could bring.
When you take a closer look at the offer, it really is a very smart business decision.
The Bullvine Bottom Line
I am sure it seems like some of the prices you see top animals selling for these days are unrealistic and that $750 for a single dose of semen doesn’t make sense. I agree that for most breeders it doesn’t. However, if you are in the high-end genetics game, these prices are not only realistic they actually make good business sense and prove that “All that glitters is definitely Golden”