Angus genetics command record prices in fiscal 2015
October 28, 2015
American Angus Association year-end figures show strong growth for the breed.
Driven by a quality-focused market, the nation's Angus breeders are enjoying one of the most successful years on record, according to recently released figures from the American Angus Association. During fiscal year 2015, sale averages for Angus genetics soared, total registrations grew and the Certified Angus Beef® (CAB®) brand achieved its ninth consecutive year of record sales.
"No doubt, it's a profitable time to be in the cattle business, but it's also an even better time to be involved with the Angus breed," says Rich Wilson, the Association's interim CEO and chief financial officer. "Progressive breeders across the Angus business are continuing to offer premium genetics that command attention in the marketplace."
The membership organization reports registered Angus bulls averaged more than $6,700 per head in fiscal year 2015, which ran Oct. 1, 2014, to Sept. 30, 2015. That's a 35 percent increase of more than $1,500 per head from the prior fiscal year. Sales of registered-Angus females reported to the Association averaged $5,300 per head, an increase of more than 45 percent.
“The profitability the breed has experienced in fiscal year 2015 is a reflection of the demand strength for Angus genetics within the commercial cattle industry, as well as a call from consumers for high-quality beef.” Rich Wilson, American Angus Association interim CEO, CFO
On average, buyers paid about 35 percent more for registered Angus genetics in 2015 than they did during the prior fiscal year, with nearly $110 million in additional gross revenue reported for registered-Angus breeders. Total gross sales reported to the Association eclipsed $437 million — the highest ever reported in the organization's 132-year history.
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"The profitability the breed has experienced in fiscal year 2015 is a reflection of the demand strength for Angus genetics within the commercial cattle industry, as well as a call from consumers for high-quality beef," Wilson says.
Across the board, nearly all business metrics point to the breed's most successful year in recent history. Total assets for the organization reached more than $55 million.
Registrations, at 320,362 animals, increased 7.4 percent over the previous year, representing the largest growth since the economic downturn of 2008. Of calves registered, 53 percent were produced by artificial insemination (AI) and embryo transfer (ET) calves represented 11 percent of total registrations in fiscal year 2015.
Leading the beef business
The commitment to performance records continues alongside the growth of genomic technologies. More members submitted more records in 2015, with a 3 percent jump in total weights received. Meanwhile, the number of animals genomically tested through Angus Genetics Inc. more than doubled, thanks largely to the introduction of low-density (LD) tests that provide a cost-effective option for DNA analysis. Angus cattle that have been genomically tested represent about 24 percent of all animals in the expansive breed registry.
Pull-through demand from beef consumers worldwide also continues to strengthen and bring value back to the ranch. Certified Angus Beef LLC (CAB) brand partners sold 896 million lb. of CAB® brand product in fiscal year 2015 — achieving the ninth consecutive year of record sales. All-time high brand acceptance rates, at 27.5 percent, reached this year indicate the increasing value of Angus genetics amongst producers.
The nonprofit arm of the American Angus Association, the Angus Foundation marked its 35th anniversary with its best year on record. Total revenue reached $11.3 million toward investments in education, youth and research initiatives. The Angus Foundation presented 136 scholarships in fiscal year 2015, totaling more than $276,000.
Finally, Angus Productions Inc. experienced growth in its Angus Media outlets, with increases in page counts, circulation and viewership, and expanding marketing capabilities for breeders to reach ever-increasing audiences. The Angus Journal® magazine, owned by the Association for more than 35 years, experienced a 12 percent increase in page counts, year over year, delivering more award-winning news content and advertising than before.
"We're certainly proud of our 25,000-plus members across the country and what they are doing to keep the Angus breed at the industry forefront," Wilson says. "With their continued confidence, the best is yet to come."
The Association is also preparing for the 2015 Angus Means Business National Convention & Trade Show, where nearly 2,000 cattlemen and women are expected to gather for the three-day event in Overland Park, Kan. For more information, visit http://www.angusconvention.com.
For more year-end highlights from the American Angus Association, access the organization's annual report or visit the website at http://www.angus.org.
ANGUS MEANS BUSINESS. The American Angus Association® is the nation's largest beef breed organization, serving nearly 25,000 members across the United States and Canada. It provides programs and services to farmers, ranchers and others who rely on the power of Angus to produce quality genetics for the beef industry and quality beef for consumers.
For more information about Angus cattle and the American Angus Association's programs and services, visit http://www.ANGUS.org.
–American Angus Association