A business plan is essential for using the Boran bull recently sold in South Africa for R8 million, rather than focusing solely on the amount paid by the new owner.
This exceptional bull, Cyclone, set a new South African record price for all cattle breeds at Hurwitz Farming’s 10th production auction, held in its auction complex, The Bull Ring. The buyer is Collen Tafireyi, a mining magnate and Boran breeder from Sinyo Farming in Hwedza, Mashonaland East, Zimbabwe.
Also read: WATCH | Beast of a Boran bull achieves record
The high record price has caused widespread speculation about how someone could justify such a large investment in a single animal.
Christopher Havenga, breed adviser of the Boran Society, who attended the auction, said it doesn’t matter what a breeder pays as long as he has a business plan for how the animal will be used.
“With a good plan, you can recoup that money through breeding excellent offspring using modern technology like embryo flushing and artificial insemination. Therefore, the price isn’t the most important factor but how you plan to utilise it.”
He believes that with smart utilization, the new owner can recover his money within five years.
Six partners also bid on the bull and had a well-thought-out business plan. They bowed out at about R4,5 million. One of them continued bidding but ultimately had to concede to Tafireyi.
Perfect meat bull
Havenga described Cyclone as a flawless meat bull. “I would sign my name five times behind his name as the ideal bull. He has the necessary width, length, depth, and a beautiful head – everything you want in a perfect animal.”
He praised the Hurwitz brothers for their excellent breeding and top-class marketing. Regarding the criticism of paying millions for pedigree animals that arises after such auctions, regardless of breed, Havenga said there are always affordable animals at auctions for other pedigree and commercial breeders. The top prices are outliers and not necessarily the norm for prices within a breed.
It’s not about selling weaner calves in a case like Cyclone, but about marketing the best breeding material.
Tafireyi has already applied to SA Stud Book to register his stud here and become a member of the Boran Society.
It is reported that he has purchased Borans worth about R30 million in South Africa to expand his stud and wants to strengthen his ties with the country.
Huge interest – even the entire Lesotho cabinet
Hurwitz Farming of Davel in Mpumalanga is owned by brothers Simeon and Jarren.
The stud was established in 1993 with the import of embryos from the Mafundzalo herd in Zambia. There is also a Droughtmasters stud.
The farm owns about 3 500 cattle, including stud and commercial animals. The company also has a wildlife division, crop farming operation, feedlots, and does contract work for farmers to make silage.
The auction was not conducted under the direction of an auction company. Instead, the brothers used freelancers in roles such as marketing and spotting.
Johan van der Nest, a freelance auctioneer with 36 years’ experience, conducted the sale, as he has done every year since the brothers started production auctions.
African Farming wanted to know how it felt to sell a bull for R8 million. “Whether I sell a bull for R8 million or R80 000, it’s the same amount of work for me,” said Van der Nest. “However, the price is a great achievement, and I was privileged to handle the microphone. It’s a remarkable achievement for the Boran, meat and genetic industry.”
He congratulated the Hurwitzes, saying their approach to breeding is exceptional and their marketing incredible.
“There was tremendous interest, even from abroad. Virtually the entire Lesotho cabinet attended the auction because they want to invest heavily in Borans.
“There is enormous interest abroad in South African Boran technology – thanks in part to the Hurwitz brothers’ campaign to market their breeding material overseas.”
According to Van der Nest, there is a strong effort by authorities, genetic companies and embryo stations to develop protocols to export South African breeding material, including to South America and North America, despite foot-and-mouth disease currently being a stumbling block.
There are techniques to treat embryos, for example, to ensure they cannot transmit diseases.
Good average prices
The cow Lexus fetched R1,3 million, also believed to be a South African record. The buyer was Troy Gayler, a Boran breeder with farming interests in South Africa and Australia.
All classes of Borans achieved good average prices. Seven pregnant heifers sold for an average of R504 286, 12 pregnant cows with calves (3-in-1) for an average of R566 667, 10 cows with calves for an average of R388 000, seven bulls for an average of R2 361 429, a pregnant cow for R170 000, and 12 straws of semen for R10 000 each.
