The move would allow his annual sale to continue to offer Hereford and Angus bulls.
To start the Angus stud, he had bought 35 Angus heifers and about 30 Angus cows.
Most of the cattle were from farms in the North Island, including Stokman Angus in Rotorua and Merchiston Angus in Marton.
Some of the Angus cattle were bought from Meadowslea in Fairlie.
Breeding bulls required "plenty of hard work and investment" but getting positive feedback from vendors made all that hard work worthwhile, Denham said.
"Every year we get told we've put up a good line of bulls."
He vowed to retain a focus on genetically improving the Hereford herd as he established his Angus stud.
The best cross of any cattle breeds was Hereford and Angus because it provided "gutsy" cattle which could perform in the hill-country, Denham said.
"It doesn't matter which way you do it, there's hybrid vigour and growth. When breeding cattle for meat, it's a jolly good cross."