Abstract Background Central testing is used to select young bulls which are likely to contribute to increased net income of the commercial beef cattle herd. We present genetic parameters for growth and reproductive traits on performance-tested young bulls and commercial animals that are raised on pasture and in feedlots. Methods Records on young bulls and heifers in performance tests or commercial herds were used. Genetic parameters for growth and reproductive traits were estimated. Correlated responses for commercial animals when selection was applied on performance-tested young bulls were computed. Results The 90% highest posterior density (HPD90) intervals for heritabilities of final weight (FW), average daily gain (ADG) and scrotal circumference (SC) ranged from 0.41 to 0.49, 0.23 to 0.30 and 0.47 to 0.57, respectively, for performance-tested young bulls on pasture, from 0.45 to 0.60, 0.20 to 0.32 and 0.56 to 0.70, respectively, for performance-tested young bulls in feedlots, from 0.29 to 0.33, 0.14 to 0.18 and 0.35 to 0.45, respectively, for commercial animals on pasture, and from 0.24 to 0.44, 0.13 to 0.24 and 0.35 to 0.57 respectively, for commercial animals in feedlots. The HPD90 intervals for genetic correlations of FW, ADG and SC in performance-tested young bulls on pasture (feedlots) with FW, ADG and SC in commercial animals on pasture (feedlots) ranged from 0.86 to 0.96 (0.83 to 0.94), 0.78 to 0.90 (0.40 to 0.79) and from 0.92 to 0.97 (0.50 to 0.83), respectively. Age at first calving was genetically related to ADG (HPD90 interval = −0.48 to −0.06) and SC (HPD90 interval = −0.41 to −0.05) for performance-tested young bulls on pasture, however it was not related to ADG (HPD90 interval = −0.29 to 0.10) and SC (HPD90 interval = −0.35 to 0.13) for performance-tested young bulls in feedlots. Conclusions Heritabilities for growth and SC are higher for performance-tested young bulls than for commercial animals. Evaluating and selecting for increased growth and SC on performance-tested young bulls is efficient to improve growth, SC and age at first calving in commercial animals. Evaluating and selecting performance-tested young bulls is more efficient for young bulls on pasture than in feedlots.