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South TX Beef Meeting
July 26, 2019
John Merrill
Area Beef Manager-Tx. La
John.Merrill@genusplc.com
Benchmark against who?
5
Day 43 Day 57 Day 71 Day 85
2001 Chicken Genetics
1957 Chicken Genetics
Chicken leads the race
Pigs focusing on growth/efficiency
1972
2007
CA: 3.8
CA: 2.6
100 kilos
125 kilos
380 kilos
325 kilos
32%32%836 Lbs 220 Lbs
FC:
FC:
715 Lbs 275 Lbs
…and lean %
Will the way we sell/value
cattle change?
Using data to maximize
customer profit from genetic
progress
Create, deliver and demonstrate the
value proposition
Dry Matter Conversion
(Feed Efficiency)
Carcass Traits (Quality
and Yield Grade
Carcass Weight
Animal Health30%
QG &
YG
18%
HCW
17%
AH
35%
DMC
Value Discovery and Feed
Yard Profit Drivers
Data drives improvement
• The Angus Sire Alliance
continues to be an important
part of our program
• Developed significant PT and
validation capabilities to
collect full lifecycle data
(maternal, performance, feed
intake, carcass, etc.) with
other partners in Angus and
other breeds
• Full lifecycle data collection
for Beef x Dairy
ABS Feed Intake / Efficiency
testing
• Started with Angus Sire Alliance relationship
• 20 years of progeny intake data
• Over 200 Sires tested
• Represents most sire lines in the Angus breed
• Results published as Profitability Index
Feed
Efficiency
Index
Feed
Efficiency
%Rank
ADG
EPD
ADG
Acc
ADG
%Rank
Intake
EPD
Intake
Acc
Intake
%Rank
1 BRUISER 27.69$ Top 1% +.10 .76 Top 10% -.77 .55 Top 3%
2 ASSERTIVE (New) 21.62$ Top 1% +.08 .60 Top 15% -.59 .35 Top 5%
3 OUTRIGHT (New) 20.90$ Top 1% +.22 .47 Top 1% +.42 .36
4 FRONT & CENTER 20.53$ Top 1% +.03 .35 -.93 .32 Top 2%
PROTÉGÉ (Ref) 19.87$ Top 1% +.14 .56 Top 3% -.09 .41
5 RAMPAGE 19.73$ Top 2% +.11 .38 Top 5% -.31 .32 Top 25%
6 ABSOLUTE 18.67$ Top 2% +.15 .70 Top 2% +.04 .53
DAYBREAK (Ref) 18.33$ Top 2% +.11 .78 Top 5% -.23 .60 Top 35%
7 MONUMENT 17.72$ Top 3% +.11 .71 Top 10% -.22 .51 Top 35%
8 EMBLAZON 999 (New) 17.69$ Top 3% +.09 .40 Top 10% -.34 .32 Top 20%
9 UP RIVER 17.58$ Top 3% +.04 .45 -.69 .35 Top 4%
10 RESERVE 17.17$ Top 3% -.05 .51 -1.25 .48 Top 1%
11 PAYWEIGHT 1682 16.16$ Top 4% +.01 .67 -.77 .43 Top 3%
12 SUBSTANTIAL 15.20$ Top 5% +.05 .64 Top 25% -.45 .49 Top 10%
13 WIND BREAK 14.74$ Top 5% +.01 .63 -.72 .49 Top 4%
14 BRILLIANCE 14.20$ Top 10% +.02 .76 -.60 .61 Top 5%
15 ROCKMOUNT (New) 14.14$ Top 10% +.01 .49 -.72 .36 Top 4%
16 PROFICIENT (New) 13.67$ Top 10% +.07 .46 Top 20% -.28 .32 Top 25%
17 FRONTMAN 12.36$ Top 10% -.03 .65 -.84 .47 Top 2%
18 NEW LEVEL 11.22$ Top 15% +.09 .78 Top 10% +.04 .61
19 DESTINATION 630 11.13$ Top 15% +.01 .56 -.56 .45 Top 10%
20 PROTOCOL 11.01$ Top 15% +.14 .37 Top 3% +.35 .32
21 RESOLUTE 10.62$ Top 15% +.05 .63 Top 30% -.23 .46 Top 35%
22 FUTURE FORCE 10.39$ Top 15% +.05 .40 Top 30% -.19 .36
23 FINAL PRODUCT 10.07$ Top 15% +.08 .68 Top 15% +.04 .48
24 COMPLEMENT 9.08$ Top 20% +.10 .78 Top 10% +.19 .59
25 HOMESTEAD (New) 8.66$ Top 20% +.09 .49 Top 15% +.13 .34
FUTURE FOCUS (Ref) 8.62$ Top 25% +.04 .76 Top 35% -.18 .62
IN FOCUS (Ref) 8.35$ Top 25% +.06 .79 Top 25% -.03 .54
26 BLUESTEM 8.24$ Top 25% -.00 .60 -.48 .42 Top 10%
27 SPECIAL FOCUS 7.94$ Top 25% -.00 .62 -.43 .42 Top 15%
28 2U66 7.42$ Top 30% -.01 .59 -.50 .51 Top 10%
29 RAINMAKER P175 7.29$ Top 30% +.07 .68 Top 20% +.12 .47
30 HIGH NOON 6.58$ Top 35% +.04 .75 Top 35% -.09 .55
Spring 2018 Sire Alliance Data
Feed Efficiency
– The Feed Efficiency Index
identifies the most
profitable combinations of
intake and gain
– Backed by 20 years of
individual progeny intake
data
– Feed efficiency genetics
can account for as much as
$40 value difference per
calf
Do they eat the same?
•USDA Clay Center data says no
–Some cows eat twice as much as others – and
still weight the same.
•University of Lethbridge data says no
–Top 1/3 eat 10% more than the bottom 1/3.
• Data says:
–Big eaters eat as much as 3 tons more dry
matter per cow per year.
•What does that cost? $150 - $300 / cow?
COWS
Partnering with a leading US feedlot to
develop profitable terminal genetics
17
R&D partnership to
discover value of
terminal genetics in
customer system
Starting to collect
data on total
profitability from birth
to harvest
Proprietary profit-
focused index being
finalised
<2015 2016 2017 2018 2019+
Develop a scalable
commercial supply
and value share
model
Longstanding ABS
beef genetics
customer
Sire Index
Total Profit
Steers Heifers
Sire 1 Sire 2 Sire 1 Sire 2
Index High Average High Average
Number Progeny 56 50 44 40
Hot Carcass Weight (lb) 934 902 812 785
Yield Grade 3.2 3.4 2.5 3.0
Marbling Score (QG) 572 (CH°) 494 (CHˉ) 495 (CHˉ) 451 (CHˉ)
Feed Conversion 5.5 6.0 4.7 5.4
Carcass Value $1,675 $1,577 $1,486 $1,395
Production Costs $506 $527 $345 $387
Marginal Value (Breakeven) $1,170 $1,050 $1,140 $1,008
Sire Advantage $120/hd -- $132/hd --
US Terminal Index validation results
Delivering more profitable beef genetics to a leading
European beef processor
+1.8%
+3.2%
+2.3%
+4.7%+4.5%
+6.0% +6.1%
+7.8%
Medium index sire
High index sire
Red meat Fillet Loin Rib eye
Source: Actual data from leading UK customer
Demonstrating which genetics
produce more profitable carcasses
Carcass yield compared with low indexing sire Profit per head of cattle realised by our customer
Delivering incremental profit
$85
$125
$270
Low
index sires
Medium
index sires
High
index sires
Baseline:
low index
sire
Close the loop and capture value
• Connections will lead to more transparency
• Document health, nutrition and genetics
• Validation of genetics
• Reduce the risk
• Know how to manage
• Predict the outcome
• Angus Sire Link and similar programs
• Validation programs like we are working on with
Cactus Feeders
The percentage of cattle grading Choice
through the first half of the year
averaged 71.8 percent, .4 percent above
the first half of 2018 average of 71.4
percent, and well above the five-year
average of 69.6 percent. Improving herd
genetics contributed to the historically
high percentage of the cattle grading
Choice.
ECONOMICS OF IMPLEMENTING TAI
PROGRAM
ECONOMICS OF IMPLEMENTING TAI
PROGRAM
Pregnancy has 4 times
greater economic
impact than any other
production trait!
0
5
10
1 11 21 31 41 51 61 71
%calving
Calving season day
CALVING DISTRIBUTION AFTER
EXPOSURE TO BULLS
44%
64 days postpartum at
start of next breeding
season!
Planned 1st day of calving season
43% of cows < 50 DPP at
start of the next
breeding season
0
5
10
1 11 21 31 41 51 61 71
%calving
Calving season day
CALVING DISTRIBUTION AFTER EXPOSURE
TO AI AND ES
88%
79 days postpartum at
start of next breeding
season!
Planned 1st day of calving season
7% of cows < 50 DPP at
start of the next
breeding season
Use of Genetics - John Merrill

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Use of Genetics - John Merrill

  • 1. South TX Beef Meeting July 26, 2019 John Merrill Area Beef Manager-Tx. La John.Merrill@genusplc.com
  • 2.
  • 3.
  • 5. 5
  • 6. Day 43 Day 57 Day 71 Day 85 2001 Chicken Genetics 1957 Chicken Genetics Chicken leads the race
  • 7. Pigs focusing on growth/efficiency 1972 2007 CA: 3.8 CA: 2.6 100 kilos 125 kilos 380 kilos 325 kilos 32%32%836 Lbs 220 Lbs FC: FC: 715 Lbs 275 Lbs
  • 9. Will the way we sell/value cattle change?
  • 10. Using data to maximize customer profit from genetic progress Create, deliver and demonstrate the value proposition
  • 11. Dry Matter Conversion (Feed Efficiency) Carcass Traits (Quality and Yield Grade Carcass Weight Animal Health30% QG & YG 18% HCW 17% AH 35% DMC Value Discovery and Feed Yard Profit Drivers
  • 12. Data drives improvement • The Angus Sire Alliance continues to be an important part of our program • Developed significant PT and validation capabilities to collect full lifecycle data (maternal, performance, feed intake, carcass, etc.) with other partners in Angus and other breeds • Full lifecycle data collection for Beef x Dairy
  • 13. ABS Feed Intake / Efficiency testing • Started with Angus Sire Alliance relationship • 20 years of progeny intake data • Over 200 Sires tested • Represents most sire lines in the Angus breed • Results published as Profitability Index
  • 14. Feed Efficiency Index Feed Efficiency %Rank ADG EPD ADG Acc ADG %Rank Intake EPD Intake Acc Intake %Rank 1 BRUISER 27.69$ Top 1% +.10 .76 Top 10% -.77 .55 Top 3% 2 ASSERTIVE (New) 21.62$ Top 1% +.08 .60 Top 15% -.59 .35 Top 5% 3 OUTRIGHT (New) 20.90$ Top 1% +.22 .47 Top 1% +.42 .36 4 FRONT & CENTER 20.53$ Top 1% +.03 .35 -.93 .32 Top 2% PROTÉGÉ (Ref) 19.87$ Top 1% +.14 .56 Top 3% -.09 .41 5 RAMPAGE 19.73$ Top 2% +.11 .38 Top 5% -.31 .32 Top 25% 6 ABSOLUTE 18.67$ Top 2% +.15 .70 Top 2% +.04 .53 DAYBREAK (Ref) 18.33$ Top 2% +.11 .78 Top 5% -.23 .60 Top 35% 7 MONUMENT 17.72$ Top 3% +.11 .71 Top 10% -.22 .51 Top 35% 8 EMBLAZON 999 (New) 17.69$ Top 3% +.09 .40 Top 10% -.34 .32 Top 20% 9 UP RIVER 17.58$ Top 3% +.04 .45 -.69 .35 Top 4% 10 RESERVE 17.17$ Top 3% -.05 .51 -1.25 .48 Top 1% 11 PAYWEIGHT 1682 16.16$ Top 4% +.01 .67 -.77 .43 Top 3% 12 SUBSTANTIAL 15.20$ Top 5% +.05 .64 Top 25% -.45 .49 Top 10% 13 WIND BREAK 14.74$ Top 5% +.01 .63 -.72 .49 Top 4% 14 BRILLIANCE 14.20$ Top 10% +.02 .76 -.60 .61 Top 5% 15 ROCKMOUNT (New) 14.14$ Top 10% +.01 .49 -.72 .36 Top 4% 16 PROFICIENT (New) 13.67$ Top 10% +.07 .46 Top 20% -.28 .32 Top 25% 17 FRONTMAN 12.36$ Top 10% -.03 .65 -.84 .47 Top 2% 18 NEW LEVEL 11.22$ Top 15% +.09 .78 Top 10% +.04 .61 19 DESTINATION 630 11.13$ Top 15% +.01 .56 -.56 .45 Top 10% 20 PROTOCOL 11.01$ Top 15% +.14 .37 Top 3% +.35 .32 21 RESOLUTE 10.62$ Top 15% +.05 .63 Top 30% -.23 .46 Top 35% 22 FUTURE FORCE 10.39$ Top 15% +.05 .40 Top 30% -.19 .36 23 FINAL PRODUCT 10.07$ Top 15% +.08 .68 Top 15% +.04 .48 24 COMPLEMENT 9.08$ Top 20% +.10 .78 Top 10% +.19 .59 25 HOMESTEAD (New) 8.66$ Top 20% +.09 .49 Top 15% +.13 .34 FUTURE FOCUS (Ref) 8.62$ Top 25% +.04 .76 Top 35% -.18 .62 IN FOCUS (Ref) 8.35$ Top 25% +.06 .79 Top 25% -.03 .54 26 BLUESTEM 8.24$ Top 25% -.00 .60 -.48 .42 Top 10% 27 SPECIAL FOCUS 7.94$ Top 25% -.00 .62 -.43 .42 Top 15% 28 2U66 7.42$ Top 30% -.01 .59 -.50 .51 Top 10% 29 RAINMAKER P175 7.29$ Top 30% +.07 .68 Top 20% +.12 .47 30 HIGH NOON 6.58$ Top 35% +.04 .75 Top 35% -.09 .55 Spring 2018 Sire Alliance Data Feed Efficiency – The Feed Efficiency Index identifies the most profitable combinations of intake and gain – Backed by 20 years of individual progeny intake data – Feed efficiency genetics can account for as much as $40 value difference per calf
  • 15. Do they eat the same? •USDA Clay Center data says no –Some cows eat twice as much as others – and still weight the same. •University of Lethbridge data says no –Top 1/3 eat 10% more than the bottom 1/3. • Data says: –Big eaters eat as much as 3 tons more dry matter per cow per year. •What does that cost? $150 - $300 / cow? COWS
  • 16.
  • 17. Partnering with a leading US feedlot to develop profitable terminal genetics 17 R&D partnership to discover value of terminal genetics in customer system Starting to collect data on total profitability from birth to harvest Proprietary profit- focused index being finalised <2015 2016 2017 2018 2019+ Develop a scalable commercial supply and value share model Longstanding ABS beef genetics customer Sire Index Total Profit
  • 18. Steers Heifers Sire 1 Sire 2 Sire 1 Sire 2 Index High Average High Average Number Progeny 56 50 44 40 Hot Carcass Weight (lb) 934 902 812 785 Yield Grade 3.2 3.4 2.5 3.0 Marbling Score (QG) 572 (CH°) 494 (CHˉ) 495 (CHˉ) 451 (CHˉ) Feed Conversion 5.5 6.0 4.7 5.4 Carcass Value $1,675 $1,577 $1,486 $1,395 Production Costs $506 $527 $345 $387 Marginal Value (Breakeven) $1,170 $1,050 $1,140 $1,008 Sire Advantage $120/hd -- $132/hd -- US Terminal Index validation results
  • 19. Delivering more profitable beef genetics to a leading European beef processor +1.8% +3.2% +2.3% +4.7%+4.5% +6.0% +6.1% +7.8% Medium index sire High index sire Red meat Fillet Loin Rib eye Source: Actual data from leading UK customer Demonstrating which genetics produce more profitable carcasses Carcass yield compared with low indexing sire Profit per head of cattle realised by our customer Delivering incremental profit $85 $125 $270 Low index sires Medium index sires High index sires Baseline: low index sire
  • 20. Close the loop and capture value • Connections will lead to more transparency • Document health, nutrition and genetics • Validation of genetics • Reduce the risk • Know how to manage • Predict the outcome • Angus Sire Link and similar programs • Validation programs like we are working on with Cactus Feeders
  • 21. The percentage of cattle grading Choice through the first half of the year averaged 71.8 percent, .4 percent above the first half of 2018 average of 71.4 percent, and well above the five-year average of 69.6 percent. Improving herd genetics contributed to the historically high percentage of the cattle grading Choice.
  • 22. ECONOMICS OF IMPLEMENTING TAI PROGRAM ECONOMICS OF IMPLEMENTING TAI PROGRAM
  • 23. Pregnancy has 4 times greater economic impact than any other production trait!
  • 24. 0 5 10 1 11 21 31 41 51 61 71 %calving Calving season day CALVING DISTRIBUTION AFTER EXPOSURE TO BULLS 44% 64 days postpartum at start of next breeding season! Planned 1st day of calving season 43% of cows < 50 DPP at start of the next breeding season
  • 25. 0 5 10 1 11 21 31 41 51 61 71 %calving Calving season day CALVING DISTRIBUTION AFTER EXPOSURE TO AI AND ES 88% 79 days postpartum at start of next breeding season! Planned 1st day of calving season 7% of cows < 50 DPP at start of the next breeding season