How do we set our prices? | Bestyet A.I Sires | Grazing Genetics from Dutch Belted and Milking Shorthorns

One common question we get is about how we set our prices, so let’s talk about it today.

 

Semen prices

Our semen prices are essentially set by the principles of supply and demand. When we collect a bull, since it’s not feasible to keep live bulls over a long period, we try to estimate a reasonable quantity of semen to collect, and then sell the bull. It’s hard to predict how much semen we think we’ll sell over the next number of years, and of course we have to balance that with the up-front costs of collection and the long-term costs of storage.

As the inventory of a particular bull dwindles over time, we tend to raise the semen price to slow down sales, so that in the future if a customer wants that particular bull, there will still be some available. At a certain point we take them off the market to retain a small inventory for us to use in future conservation matings, so later on we may have sons of those bulls available.

We think it’s essential to keep a broad representation of bloodlines, including some older bulls as they can be useful to go back to after a few generations. We try to keep a decent inventory of lower-priced bulls so there’s plenty of selection.

Let’s have a look at the costs that go into semen production. First, there’s planning matings with future herd sires in mind, in terms of genetic diversity and the traits we and our customers consider important.

Once a bull calf is born and selected to raise (which involves paying for DNA tests), there are costs in registering, raising, and keeping him intact. We’ll have to keep him longer than if we sold him as a feeder steer, and he’s going to need a special, isolated, sturdy pen as he reaches breeding age.

Once he’s ready to go to the bull stud for collection, there are significant bills for boarding and collection. If we’re looking at getting sexed semen, the costs go up dramatically.

In addition to the costs for collecting each bull, we have continual overhead costs for storing our semen inventory in liquid nitrogen tanks that must be recharged regularly.

Shipping costs, in addition to the actual shipping and return charges, include buying and maintaining shipper tanks and keeping them charged with nitrogen, and a weekly charge for being a UPS pick-up site. There’s also the time to answer questions from prospective customers, take orders, pack them, send them out, and arrange for tank return.

Breeding stock prices

Our prices for heifer calves and bull calves tend to vary according to general cattle price trends, though not directly tied to them, especially for heifer calves. Again, we’re looking at supply and demand and long-term costs of maintaining a registered herd as conservation breeders, not just commercial producers.

Our breeding stock prices generally include registration fees and interstate health certificates.

Elsie, one of our long-lived, productive Milking Shorthorn cows

Here is Meriville Elsie Gulman, an example of the long-lived, productive type of cow we’re breeding for. She’s a paternal sister to one of our favorite A.I. sires, Meriville Flashback. 

General Considerations

It takes significant time to manage a purebred herd including day-to-day husbandry like feeding and breeding and milking. Then there’s the longer term strategies including mating plans, record keeping, registrations, and maintaining buildings and equipment.

We also consider it part of our mission to be a resource to people who are interested in getting involved in heritage genetics for practical grazing cows. So we spend time fielding questions such as which bulls to use on their cows, general breed characteristics, and how to find an A.I. tech.

So when you’re buying from us, you’re not just obtaining those particular animals or straws of semen. You are sourcing genetics that involve years of selection, husbandry, skills, and knowledge. You’re plugging into a network of breeding experience that spans decades and represents the efforts and wisdom of dozens of breeders who came before us and supplied breeding stock to get us started so many years ago.

Bloodlines from prominent bygone breeders such as Emmett Arnold, W. Arthur Simpson, and Dorothy O’Neill Hornback live on in our herd, preserved for the future and for your benefit today. As mainstream industrialized dairy genetics drift farther from the traits cows need to be capable of long, productive lives in grass-based production, this feels even more important.

Your purchase, in addition to supplying you with the unique genetics you’re looking for, supports these conservation efforts.

We continue to hear from people who are so glad they found us, and they express their appreciation that we’re still here, still breeding and milking cows that stand the test of time.

Conservation breeding is not a lucrative business, but we are convinced it is worthwhile. We are invested in carrying on these valuable genetics and making them available to you.

Winnie and Martha of Bestyet A.I. Sires with a DB calf

Winnie and Martha with a young Dutch Belted calf, part of the future of the breed.