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Beyond Borders is a magazine designed to promote dairy genetics, technology and management published by Semex.
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SPR
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BeyondInto Tomorrow Together
The world is pondering where
its water, commodities and even
milk will come from to feed its
growing population and hungry
nations can’t wait. By working
side-by-side with you in over
80 countries, it’s clear that the
world needs Genetics for Life.
Genetics for Life is about genetic
solutions, our commitment to
research & development and
most importantly, developing
long-lasting, profitable herds and
lifelong partnerships.
Genetics for Life is all about enhancing lives and how we
will feed the lives of tomorrow together.
pg 3
Beyond
22
14
24
BEYOND BORDERS IS A MAGAZINE DESIGNED TO PROMOTE DAIRY GENETICS, TECHNOLOGY AND MANAGEMENT PUBLISHED BY SEMEXComments or submissions to the editor should be forwarded to Brenda Lee-Turner, Semex, 130 Stone Road West, Guelph, Ontario, Canada N1G 3Z2. tel: 519-821-5060, fax: 519-821-7225; email: [email protected].
Advanced Reproductive
Management (ARM)
Seven Questions for Semex’s Chief Operating Officer
A Case For Polled
Setting The Stage
19
6 Semex ai24™
People: Our Most Important Asset
pg 4
Semex ai24™: Leading the Way Five Years Strong
pg 6
Delivering on Disease Resistance Promise: Immunity+™
pg 8
A Smart Business Choice: Sexxed™ pg 10
Setting The Stage pg 14
A Case for Polled pg 19
Seven Questions for Semex’s Chief Operating Officer
pg 22
Advanced Reproductive Management (ARM)
pg 24
Cenatte Embryos pg 28
Will You Have A Seat When The Music Stops?
pg 30
pg 4
282 Corporate Semex Staff
336Subsidiary & Joint Venture Staff
Our Vision: We demand the best…
Of ourselves,
our company and
what we do for our customers
We’re working shoulder-to-shoulder with our clients worldwide, listening and watching in order to ensure our products and services exceed their expectations. This makes our people our most important asset.
In 2013 we added key individuals to both our sales and genetics teams. These hires are all highly qualified, having real-world experience and practical on-farm knowledge. We believe that surrounding both ourselves and our clients with the best, brightest and most aggressive professionals ensures mutual success.
As we restructured our Sales Division into a Global Business Development Team, we took the opportunity to be introspective, promoting from within and adding team members to align territories, match needs and further drive our programs, services and investments in people.
NEW ADDITIONS TO THIS TEAM IN 2013:• Dany-Pierre Rondeau as the primary Sales
Manager working within the Middle East and North Africa
• Michael Dennison as the Sales Manager for
Semex UK, alongside of continuing sales leadership within the UK
• Zoltán Veres as the Sales Manager in Central and Eastern European markets
• Harry Schuiling as the Sales Manager focusing on South Africa and European markets
• Pierre Marx as the Sales Manager focusing on Sub-Saharan Africa
• Mauricio Chinchilla as Sales Support in Central America
• Adriano Boer as Sales Support in Brazil and South America
“We truly believe that people are our most important asset,” says Paul Larmer, Semex Chief Executive Officer. “And, we’re very excited to have these gentlemen be promoted from within and join our global organization in these new positions. They all have an exceptional history with the Semex family and we’re pleased that they will be joining our global management team to further our growth strategies worldwide.”
No breed is experiencing faster growth than the Jersey breed, and with a 24% increase in Jersey doses sold in 2013 versus 2012, Semex’s
People: Our Most Important Asset Brenda Lee-Turner, Semex Marketing Communications Specialist
Russell Gammon, Jersey Program Manager
pg 5
Jersey program is one of the world’s fastest growing programs. To support this growth, Semex has hired David Ertl as the US Jersey Sire Analyst. In this role, David will report directly to the Jersey Program Manager, Russell Gammon, and will be responsible for executing Semex’s Jersey sire selection and acquisition strategy in the US. This newly created position supports Semex’s growing Jersey Genomax™ program, ensuring Semex continues to obtain the breed’s best genetics. Additionally, David will be working directly with the Semex Team from coast to coast, supporting sales and providing Jersey knowledge and genetic expertise.
“We could not be more excited to add David to our Jersey team,” says Russell Gammon, Semex Jersey Program Manager. “With his practical knowledge of modern dairy farming, a world of energy and drive, and an ocean-deep knowledge of the Jersey breed, David is the perfect choice for this position! Semex’s Jersey program is expanding year after year and now with David on board, we look forward to even greater successes and accomplishments.”
Also added to the Genetics Team was Chris Studer, as Semex Ayrshire Sire Analyst. Chris has been the Semex Ayrshire Coordinator, working part-time coordinating all genomic testing, matings and purchases of all Ayrshire bulls while also working as a Progeny Analyst at CIAQ. Now, in this fulltime role, Chris is completely focused on Semex’s popular Ayrshire lineup, ensuring the implementation of the modern selection philosophy.
“Chris’ successful experience with Semex since 2006 as our Ayrshire Coordinator makes him a logical choice and fit for our Genetics Team,” says Pierre Laliberté, Semex Senior Vice President, Genetics & Research. “We’re excited to have him working 100% of his time with us, focusing exclusively on Ayrshire breed improvement.”
People: Our Most Important Asset
AT SEMEX, WE BELIEVE PEOPLE ARE NOT ONLY THE
CORNERSTONE TO OUR SUCCESS, BUT ALSO OUR FOUNDATION.
Each member of the Semex family creates value for our clients each and every day,
ensuring that we develop and deliver innovative genetic
solutions.
L to R: Zoltán Veres Pierre Marx Adriano Boer
L to R top: Mauricio Chinchilla Chris Studer David Ertl
L to R bottom: Michael Dennison Harry Schuiling Dany-Pierre Rondeau
pg 6
Five years ago, Semex launched Semex ai24™ in the United States, and it quickly became a brand synonymous with leading reproductive and herd monitoring solutions.
Working with our clients, we quickly realized that as producers’ herds were growing, their need to have another set of eyes seeing on the farm also grew. When looking for a solution, Semex chose to offer clients both reliability and peace of mind with the Semex ai24 system. As the first genetic supplier to fill this need, we initiated conversations about saving dairymen both time and money. Five years later, we’re still having those same discussions… How to save our clients money and time.
What has changed in five years is the actual technology behind our heat detection and herd monitoring program. We’ve been excited to be part of the many breakthroughs that make it one of the industry’s most exciting technologies. First with SCR, we offered the SCR H-Tag™, that had been proven successful worldwide as an extremely accurate heat detection option. Shortly thereafter in 2011, we were awarded the Dairy Herd Management Top 10 Innovative Product Award for the next generation of the H-Tag that included rumination monitoring, with the SCR HR-Tag™. This tag was so popular it also received a Top 10 New Product of the Year Award at World Ag Expo in 2012. And, most recently we released the SCR H-LD™ and HR-LD™ tags, offering long-range, wireless connectivity.
Clients have been pleased with sooner than expected return on investment and have also enjoyed and appreciated excellent customer service from their Semex Genetic Consultant. Working with Semex, you can be assured that we’re here to not only walk with you through this technology but to also help guide you to higher performance levels. We know we can’t put more time in your day, but we can put more time on your side!
Semex ai24™: Leading the Way Five Years Strong
Chris Sheahan, Semex ai24™ Program Manager
Powerful, real-time reproduction and herd
health monitoring
Changing how herds are
managed
Proven on
15,000 farms worldwide
“�THE�RUMINATION�IS�AWESOME.�WE�ARE�SPENDING�A�LOT�LESS�TIME�LOOKING�AT�COWS�BECAUSE�I�HAVE�THIS�WATCHING�THEM�24/7. ”
Dan Reuter, Reuter Dairy, Peosta, Iowa
pg 7
pg 8
“�THE�PATH�FOR�DEVELOPING�MORE�DISEASE�RESISTANT,�HEALTHIER�COWS�IS�SIMPLE�AND�CLEAR...�IT�STARTS�WITH�IMMUNITY+�SIRES.”
Delivering
innovative solutions
Brad Sayles, Semex Vice
President Global Marketing
and Dr. Bonnie Mallard,
Professor of Immunogenetics
at University of Guelph
pg 9
No matter whether you manage your cows on pasture, in commercial housing or by other methods, it’s a big challenge to maintain a healthy herd of profitable and efficient cows. If a cow becomes affected by disease, modern management and medicine are used to remedy the situation. If that’s not possible, the unfortunate decision to cull the animal may have to be made. Either way, both result in added costs that must be absorbed by the dairy… But what if it didn’t have to be that way? What if there was a way to breed cows that have a higher immune response, and thereby have a greater resistance to disease built right into them?
For generations, we’ve all observed cows or cow families that were more resilient (less sick) than others. At Semex, we believe the key to better health lies in the genes and with Immunity+ sires we can successfully breed both a healthier cow and a healthier herd.
The High Immune Response (HIR) technology developed by Dr. Bonnie Mallard and her colleagues at the University of Guelph has been more researched than most technologies that are brought to the farm. This research tells us that HIR cows have 19-30% lower incidence of disease compared to the herd average. And, these cows respond better to commercial vaccines and also produce higher quality colostrum for their calves. As a result, they’re more profitable, by bringing in more revenue, lowering costs and wasting less of the dairyman’s time.
The discovery of HIR was a game changer, as it revealed that high immunity is passed on from parent to progeny at rates much like production and some conformation traits. Compared to most health traits with low heritabilities of <10%, immune response is considered moderately to highly heritable at 25%. This means it can be selected for and improved upon with each generation.
Semex has applied this technology, and developed an exclusive line of HIR bulls known as Immunity+™ sires.
Immunity+ sires are those possessing an extremely high immune response rate, with only one in 10 bulls qualifying as Immunity+. Based on the extensive research of high immune females, and applying genetic transmitting principles that go with a 25% heritable trait, we can estimate that Immunity+ sires’ daughters will have 4-8% less disease incidence. Although this technology is new, (only released about a year ago), early data appears to validate the technology and then some!
Semex was able to retrieve data from US dairies in herds with both excellent health recording and sufficient Immunity+ daughters in order to make a valid comparison. Although the analysis is very limited at this stage due to low numbers and specifics cannot be responsibly shared, the three large dairies studied showed no less than an 8% reduction in disease incidence when comparing daughters of Immunity+ sires to daughters of other sires. So far, the largest differences observed were for mastitis and calf pneumonia. These early indications show lots of promise, and it will be interesting to see how the higher than expected differences hold up as more daughter data becomes available.
Additionally, we have been excited to hear unsolicited anecdotal evidence from dairymen. For example, recently a dairyman using several studs, reported that a bug hit his dairy’s calf pen. Unfortunately, he lost 11% of the daughters from other sires (3/4 of all calves), but none of his Immunity+ sired calves (1/4 of all calves) were lost.
More validation is seen when looking at sons of Immunity+ sires. Seven current Immunity+ sires have had sons tested for HIR. Over 50% of these bulls’ sons qualified to be Immunity+, compared to the standard of 10% of all bulls tested. If we assume transmission from sire to daughter is similar, then the advances achievable in just one generation are very exciting! And, knowing it’s a trait based on over 2,000 immune-related genes, the health benefit will be repeated with each subsequent generation.
Immunity+ is Genetics for Life.
Jay Shannon, Semex Global Dairy Solutions Manager
Delivering on Disease Resistance Promise
HIR is
25%heritable
Early herd data supports a
4-8%reduction in disease
1 in 10 bullstested qualify as Immunity+
pg 10
“Using sexed semen gives me the breeding options required
to protect the investment we’ve made in genetics and
quality cow families.” John Allan of Bleak House Farm
at Burton-on-Trent , UK
“We are now averaging 95% heifers from all of our breedings to sexed semen.”
Steve Little of Casehill Farms in Little Britain, Ontario
A smart business choice to expand the number
of quality heifers within your dairy.
pg 11
Since 2006, Semex has been selling its Sexxed™ semen as a ‘smart business choice to expand the number of quality heifers within your dairy.’ Today, the decision to make sexed semen part of your reproductive strategy may be one of the smartest economic decisions you can make.
Recent analysis of 2,390,000 lactation records covering 1,490,000 cows showed Katie Hindie of Harvard University a clear pattern… Cows produce more milk after having heifer calves than bull calves. In particular, the sex of the first calf was important, as it can influence how much milk was given in both the first and second lactations.
Ms Hindie’s work at Harvard in the Department of Human Evolutionary Biology had her investigating how animals invest in their young. In particular, she was researching the common belief that mothers of all species favor their sons over daughters, as males generally have better opportunity to propagate.
Armed with lactation records from 1995 to 1999 (prior to the commercialization of sexed semen) from the Dairy Records Management System in the United States, Katie discovered quite the contrary to the common theory. She found that cows having a heifer in both their first and second lactations produced 1000 lbs more milk over those first two lactations than a cow that had two bulls in her first two lactations.
We turned to Eastgen’s Reproductive Strategy Manager Mark Carson, MSc., BSc. Agr for some answers.
“The Harvard paper is an interesting look at how fetus sex is associated with milk yields,” says Carson. “With females
providing less calving issues, I believe the reduce risk of dystocia is leading to the overall increase milk production. That being said, it’s entirely plausible that a female fetus could provide benefits to terms of mammary develop of the dam. Whatever the reasoning, the end benefit shows that having female calves leads to increased milk yields.”
For our clients, this means the choice to use Semex Sexxed semen is obvious. Ensuring your cows are as productive as possible and getting females from your best cows is simply smart business.
Steve Little of Casehill Farms in Little Britain, Ontario has been using Sexxed semen exclusively on his herd for two and half years, and says they’re using Sexxed to ensure he keeps his herd numbers up.
“Our herd was reproducing only 45% heifers at birth verses 55% bulls,” says Steve. “Add in some fatalities and the odd non-breeder heifer or any other issue and we found that we were having trouble keeping herd numbers up, especially with good cows. We’ve been a closed herd since 1996 and had poor results with purchased cows or heifers before then. We want lots of replacements from our own herd and sexed semen is the answer.”
“We started about two and a half years ago by breeding every heifer and 50% of the cows to sexed semen. The other 50% of the cows were bred with the same bull (non-sexed). After two months we found the conception rate to be very similar between the two. We are now averaging 95% heifers from all of our breedings to sexed semen. We’re moving our cow numbers back up, and with good cows at that. Now, we’re getting heifers from our best cows! We look forward to a better
Brenda Lee-Turner, Semex Marketing Communications Specialist
A Smart Business Choice
SEMEX
SALES OVER TIME
SEXXEDSEMEN
2007 2008 2009 2010 2011 2012 2013
Continued on page 12
pg 12
herd. I remember years ago our best cow was around for about eight years and never had a single heifer calf… Do the math if we had of been using sexed semen!”
In the United Kingdom, John Allan of Bleak House Farm at Burton-on-Trent agrees.
“Using sexed semen gives me the breeding options required to protect the investment we’ve made in genetics and quality cow families,” says John. “We’ve used a significant volume of sexed semen to achieve faster genetic progress, increase overall cow numbers and still have surplus heifers to sell; it makes sound business sense from my perspective.”
Not exclusive to dairy semen, Semex Beef™ has an extensive lineup of Sexxed semen available to meet the growing demand for gender-sorted semen within the Beef industry. With sales up over 13% in the past year, Semex Global Beef Manager Myles Immerkar doesn’t see demand slowing down.
“The use of Sexxed semen in the beef sector has continued to grow as breeders look to specialize their programs to their markets. By using our Sexxed product breeders have been able to use
more performance oriented genetics in their heifer breeding program with the guarantee of a heifer calf, where in the past they would have to focus on elite calving ease bulls to ensure a problem- free calving,” says Myles.
“The selection for extreme calving ease always means giving up performance, but our Sexxed lineup allows them to choose from a larger genetic pool that provides them with balanced traits. Other breeders have learned to specialize their programs. Rather than trying to select replacement heifers from their own herd, they have decided to outsource replacement heifers and while using male sexed semen to increase the pounds of beef produced per year and increase their commercial operation’s profitability.”
Offering our clients cost-effective breeding and reproductive solutions is the direct result of understanding their needs. We believe that this is Genetics for Life.
1000 lbs More Milk Over First Two
Lactations If Both
Are Heifers
Sexed semen technology has
been around for
35 years
Semex has been selling
sexed semen since
2006
Semex Beef™ Sexxed
semen sales up
13%in 2013
“�BY�USING�OUR�SEXXED�PRODUCT�BREEDERS�HAVE�BEEN�ABLE�TO�USE�MORE�PERFORMANCE-ORIENTED�GENETICS�IN�THEIR�HEIFER�BREEDING�PROGRAM ”
pg 13
Healthy heifers are critical in herd replacement strategies.Having the option to select for gender translates to better control over your herd’s future.
Semex’s Sexxed™ semen has high conception rates, giving you breeding options, while
maintaining genetic integrity. Put yourself in the driver’s seat by breeding the heifer you
need, when you need her.
A smart business choice for expanding the number of
quality heifers within your dairy.
pg 14
PASSIONFUELSOURRESULTS
pg 15
Semex’s strategic plan was designed to enhance our growth and stability, with a focus on revenue, profit and returning dividends to our owners. Since it was put in place six years ago we have seen impressive results, confirming our belief that what gets focus gets results.
In 2013 our revenues continued to climb, exceeding our goals originally set for 2015, with successes felt in developing countries, as well as mature markets. In fact, 2013 marked the sixth year in a row where we saw year-over-year sales growth in the USA. This is only possible due to our commitment to people, training and delivering a solutions approach to clients.
At Semex, we’re also working on revolutionary solutions that impact our clients’ bottom lines. As disease continues to impact
overall herd health and profitability, we recognized long ago the need to help breed a healthier, disease resistant herd. In 2013 we launched our Immunity+™ sires worldwide to assist our clients in this battle. The industry recognized it as a game-changer and Dairy Herd Management awarded it as an Innovative Product of the Year at the 2013 World Dairy Expo.
Sophisticated clients worldwide demand innovative tools designed to increase profitability and drive efficiency. In 2013, Semex launched another exclusive, cutting-edge tool with SemexWorks™. Showcased first at World Dairy Expo and then at the Royal Agricultural Winter Fair, SemexWorks is an easy, step-by-step digital process that will not only help define breeding strategies with customized economics, but it’s flexible and will fit anyone’s goals. Semex Genetic Consultants worldwide now have the opportunity to help their clients design customized economics and genetic plans related to their farm’s goals, and generate return on investment statistics in order to ensure a truly customized breeding strategy.
Semex’s commitment to research, development and quality remains steadfast, as 3% of our revenues are invested into research and development through L’Alliance Boviteq, our international Research & Development (R&D) centre. Additionally, our 140 staff working at our housing, production and distribution teams on four continents have over 400 years combined international experience in making fertility their number one priority.
Governed by our Gold Standard™ that ensures the strictest protocols are followed throughout each and every phase of the production process, our staff works diligently to ensure we achieve our objective of the highest quality product at the lowest possible price.
As a genetics company, we can be extremely proud, as our line-up continues to be the envy of the industry. Since 2009 we’ve
increased the number of Holstein bulls genotyped from 1300 to over 4800 in 2013. We’re very proud of these successful bulls we call Genomax™ sires, as they are the direct result of intense selection and offer tremendous potential for GTPI, Type, Net Merit $, Calving Ease and many other traits breeders are interested in.
Topping lists worldwide, Semex is home to three of the top 10, six of the top 20 and nine of the top 30 from Holstein USA’s Top 100 TPI Genomic Young Bull list in April 2014. Our Jersey team has much to be proud of, with a 24.6% increase in doses and 22.1% increase in dollars sold in 2013 versus 2012. Our Semex Beef™ team shares our goal of feeding the world, and has been adding new products to our lineup, allowing our clients to better select genetics that will work for them, and is proven by a 14% growth in 2013. This strategy is netting great results, with a 4.2% increase in units sold and double digit increases in Sexxed™ semen revenues in 2013.
In 2013, strategic plans were put into action as our Semex Operations Team worked to further increase efficiencies at all levels, both at home and abroad. This includes consolidation of efforts domestically, expansion of our Hungarian facilities and breaking ground on a new isolation facility in Ontario.
In November 2013, we announced a joint venture with The Cenatte Group in Brazil. Located in Pedro Leopoldo, MG, Brazil, Cenatte is one of the world’s leading biotechnology and bovine reproduction companies, working to increase beef and dairy client productivity for nearly 30 years. Cenatte will be integrated with our North American IVF technologies, further strengthening our product line while offering the most up-to-date technologies to our Brazilian customers. Working together with Cenatte as one of our global partners, we’re looking forward to further developing long-lasting and profitable herds for our clients.
Semex is positioned extremely well to meet the changing global marketplace. Our recent investments in people, facilities and technologies will allow us to continue to meet the needs of our clients, while continuing on our growth trajectory.
We are proud to continue growing relationships and our global footprint, while putting our strategic plan into action. Certainly this would not be possible with out the commitment and dedication of our Owner Partners, our Board of Directors and most of all, our valuable staff.
As our goals and objectives evolve with our global clients, we will continue to strive for more and push ourselves further. All of this is a result of our Vision to ‘Demand the best… Of ourselves, our company and what we do for our customers.’
PASSIONFUELSOURRESULTS
Setting The StagePaul Larmer, Semex Chief Executive Officer
WE RECOGNIZED LONG AGO THE
NEED TO BREED A HEALTHIER,
DISEASE RESISTANT HERD.
pg 16
OVER 5400SIRES GENOTYPED
IN 2013
POSITIONEDTO BE
THE INTERNATIONAL
LEADER IN BOVINE
GENETICS
CREATING
INNOVATIVE TOOLS
DESIGNED TO INCREASE
PROFITABILITY
SEMEX IS
GENETICS FOR LIFE
pg 17
SEMEX PRODUCTS SOLD TO
110COUNTRIES
POSITIONEDTO BE
THE INTERNATIONAL
LEADER IN BOVINE
GENETICS
SEMEX IS
GENETICS FOR LIFE
SIRE AND PRODUCTION
FACILITIES ON
4 CONTINENTS
3%OF REVENUES
INVESTED IN R&D
DELIVERINGGENETIC
SOLUTIONS
pg 18
GROWINGOURGLOBAL FOOTPRINT
pg 19
Polled genetics has been around for decades in dairy cattle, but in the past few years there’s been an increased focus on the polled gene. There are many reasons for the new interest in breeding for polled cattle including easier management, reduced labor and public perception.
The industry at large already agrees that there are many benefits to having cattle without horns. On the farm, cattle are dehorned to improve worker and animal safety, decrease the need for bunk space and to reduce feed bunk aggressiveness. These benefits quickly outweigh the short period of discomfort at dehorning time.
Certainly, however, while most would agree hornless cattle are easier and safer to manage, many would also admit that dehorning calves is not necessarily a pleasant experience. Aside from the labor required to dehorn calves, employees must be effectively trained to ensure the task is performed as efficiently and painlessly as possible. The Canadian Veterinary Medical Association (CVMA) recommends that, when dehorning is necessary, it be performed within the first week of life.
Additionally, according to the Ontario Ministry of Agriculture and Food, many calves experience decreased growth in the weeks following dehorning, particularly in older calves. Research
conducted in 1977 on Brahman crossbred steers in north Queensland by Drs. Winks and O’Rourke sought answers regarding this relationship between dehorning and weight gain. Dehorning effects were measured in two experiments, both showing significantly depressed weight gains in the month following dehorning. Five months after dehorning procedures the dehorned steers had gained 22.4 lbs and 29.9 lbs less than horned steers. However, as this study was done on steers, there may be less of an effect on dairy calves as they tend to be dehorned at a more consistently young age and may be better managed.
Megan Wynands
Dairy Solutions Specialist
EastGen
A case for Polled
TM
TM
TM
TMPolled
Red & White
Show Time
Master Series
Robot Ready
TM
TMRepromix
Calving Ease TM
Built for Automation
Elite Show Sires
Time Tested Sires
TM
TM
TM
TMPolled
Red & White
Semex Tropical
Show Time
Master Series
Robot Ready
TM
TM TM
High Fertility Pooled SemenTMRepromix
Calving Ease TM
Built for Automation
Elite Show Sires
Time Tested Sires
TM
TM
TM
TMPolled
Red & White
Show Time
Master Series
Robot Ready
TM
High Fertility Pooled SemenTMRepromix
Calving Ease TM
Genomax PlusTM
Genomax-Repromax-Calving EaseGenomax PlusTM Genomax PlusTM
Genomax-Repromax-Calving Ease
Semex Tropical TMSemex Tropical
“�EASIER�MANAGEMENT,�REDUCED�LABOR�AND�PUBLIC�PERCEPTION”
Continued on page 20
pg 20
Semex recognizes the potential of the polled gene both in the marketplace and on the dairy. At Semex, we’re listening to our customers worldwide and working to offer them the very best genetic solution for them. One of those is our Polled™ lineup.
Our sire acquisition team is actively seeking the best polled females of the breed to use with the top non-polled bulls with the chance to make an extremely high bull to be used as the next polled sire of sons. Conversely, we are using a high polled bull on non-polled females to get that outcross, heterozygous polled bull that can compete on the non-polled playing field. One of those new, exciting Polled sires is 0200HO06584 Bryhill Science P. A son of
the genomic superstar himself, 0200HO07450 Amighetti Numero Uno, +2297 GTPI (April 2014), making him both exciting and easy to use in many, many herds.
“With the increased interest in polled genetics, we certainly see our sales of polled bulls increasing,” says Pierre Laliberté, Semex Senior Vice President, Genetics & Research. “We expect this to continue increasing as the genetic level increases, becoming closer to the non-polled population. This may take a few generations, but it is definitely gaining momentum. Our clients are looking for this diversity in our product line, and we’re getting it for them.”
Depending on the method used and age at dehorning, the calves could also be prone to infection. These losses need to be considered in the long-term economic calculation of polled versus non-polled genetics as the savings in labor and anesthesia alone may cover any additional costs associated with the polled gene.
There has also begun to be public discussion regarding the welfare ramifications of the dehorning process. As a business, dairymen
are becoming more and more conscious of the consumer advocate. And, public perception has become increasingly important in all animal husbandry practices. As consumers change, the industry must anticipate and proactively develop solutions to any perceived public concerns.
One non-invasive solution is to breed for a polled animal, and at Semex we’re proud to offer our clients exceptional polled offerings to complement their mating programs.
HornlessBlack & White Holsteins
were exhibited at the
Amsterdam show in 1886
The earliest American-recorded
polled Holstein was the bull
Lophelias Prince born April 22, 1889
The polled gene has
been known for over
70 years
Semex Polled™ semen
sales have increased
214%since 2009
Semex and PolledBrian Behnke, Semex Sire Analyst
pg 21
New to the marketplace, Semex’s exclusive,
patented Immunity+ sires have been tested
and confirmed to have high levels of immune
response. Studies show that Immunity+ sires
pass on their natural defense to their daughters
and future generations.
In the 64 North American herds analyzed by University of Guelph’s immune response research, all herds ranged between 19 to 30% less incidence of disease when comparing high immune responders compared to the herd average.
In a 3,000-cow herd study, results showed high immune cows are healthier and more efficient compared to their herd mates:
27% LESS
MASTITIS
17% LESS
METRITIS
32% LESS
RETAINED PLACENTA
Semex and Polled
pg 22
Semex’s Brockville isolation facility will have capacity for
230 bulls
Approximately
90%of all Semex bulls are
EU qualified
On average nearly
80,000 doses of semen collected daily
Sire and production facilities on
four continents
Robert McRae joined Semex in August 2011 and is Semex’s Chief Operating Officer. In this role, Robert ensures Semex’s Global Operations Division maximizes quality and efficiency while aligning with Semex’s global operations strategy. Robert leads Semex’s global bull housing, production and distribution teams worldwide, aligning all facets with Semex’s industry-leading Gold Standard™ that ensures strict protocols are followed throughout each and every phase of the production process. Additionally, Robert oversees Semex’s research and development and embryo divisions, consisting of the Boviteq in North America and Cenatte in Brazil.
1. SEMEX SEEMS TO BE IN EXPANSION MODE! TELL US ABOUT SEMEX’S NEW FACILITIES AND RENOVATIONS. In Québec, we’ve been working on consolidating two facilities into one for sire housing and semen production (conventional and Sexxed™). The Ste. Madeleine facility has capacity for over 700 bulls and has daily average production of over 25,000 doses. In Ontario, ground was broken on a new central isolation facility in Brockville last Fall. This facility will have capacity for 230 bulls and is designed to move our young sires through the isolation and health testing process as quickly and efficiently as possible. This facility will be open in the Summer of 2014.
2. WHY BUILD A NEW ISOLATION FACILITY NOW? The timing was right for us. We were looking at consolidating facilities in Québec, and made the decision to put more focus on the care of our young sires at entry into stud. This new facility allows us to really put more focus on different types of sires and their individual needs.
3. HOW DOES IT DIFFER FROM CONVENTIONAL FACILITIES? Traditional isolation facilities are generally at or very near production facilities. We chose to place this one centrally and to have a dedicated, fulltime staff ensuring the best care and testing of these young bulls. And, we want to reduce any biosecurity risks at our production facilities, so moving the isolation facility to a separate location makes perfect sense. The new facility will reduce the risk for any cross contamination. In turn, our staff at the production facilities can now focus on just production. It’s a win-win for us!
4. WHAT IS THE BIOSECURITY IMPACT? We feel we’ve really minimized the risk for production facilities. At our new isolation facility, bulls will continue to be housed in individual pens, but we will have much more flexibility in reducing the size of isolation
Seven Questions for Semex’s Chief Operating Officer
pg 23
groups. This means that if for some reason there’s a delay with one bull in the group, fewer bulls are held up with him and it mitigates any risk of exposure.
5. HOW DOES THIS CHANGE HOW WE DO BUSINESS? Our goal is to have bulls in and out of the facility in as quickly as possible for their health testing. This will help ensure our bulls are producing semen sooner. We’re going to minimize any delays and really put emphasis on the care and handling during the extremely important pre-production stage of a bull’s life.
6. WHAT DOES THIS MEAN TO THE END USER? For our genetic suppliers, we plan to be able to bring bulls in for testing sooner and get them moving towards production faster. And, for our clients we will be able to supply them with valuable young sire semen faster. We’re doing everything we can to control this period of time in a young bull’s life and we’re emphasizing his care sooner.
7. WHAT’S NEXT? We’re working towards further consolidations and updating our production facilities in Canada. These projects will focus on efficiency, sire care and sire comfort. And, our Gold Standard™ ensures that strict protocols are followed throughout each and every phase of the process.
Robert McRae
Semex Chief Operating Officer
pg 24
Worldwide, dairy producers have put a great deal of focus on improving efficiencies through standard operating procedures, herd nutrition and reproductive strategies. But producers are now looking for additional ways to improve herd performance. One of these new trends in reproduction is a concept called Advanced Reproductive Management (ARM).
Genetics is one of the most reliable ways to increase herd performance each subsequent generation as genetic increases are permanent, additive and rate limiting. And, we can probably all agree that since dairy cattle breeding began, it’s been in a constant state of improvement. However, with ARM, dairy cattle improvement can accelerate at levels we could only have imagined just a few years ago.
First, let’s talk about what ARM really is. ARM is a process of amplifying the best genetics in your herd by utilizing your lower value animals as recipients to carry higher value offspring. When applied correctly, the top 5% of your herd could potentially produce enough replacements to populate nearly 50% of your herd’s future replacement needs. This is definitely a more accelerated way for your herd to progress than ever before. And, if you’re able to utilize your best individuals to supply your herd’s future replacements your genetic progress is exponentially
larger than it was ever before.
ARM is realized through the In Vitro Fertilization (IVF) process, but up until a few years ago IVF was an inefficient process that limited its application beyond seedstock breeders. However, with today’s advancements in the technology, the cost
to deliver a pregnancy with a higher genetic value animal can more than pay for itself.
IVF is an advanced reproductive technology that is more complex than the well-known embryo transfer process. During IVF, a veterinarian or trained technician will use an ultrasound-
guided needle to aspirate follicles off of a cow’s ovary through the vaginal wall. A vacuum system is used to recover the contents of each follicle, including the important oocyte. Once all the follicles are aspirated from the cow’s ovaries, the fluid is taken to a lab and a microscope is used to identify the oocytes. The recovered oocytes are washed and placed into a special media that will allow them to mature for 24 hours. Once they have matured, the oocytes will be fertilized with semen and the resulting embryos placed in an incubator for an additional seven days. Following this time, the embryos are ready to be transferred into recipient animals that are approximately seven days post-heat, similar to traditional embryo transfer programs.
IVF has many advantages over traditional embryo transfer. The first of these, is that
We believe that Genetics for Life is about relationships, lifelong partnerships and presenting our clients with the best, most advanced options for use in their reproductive strategies.
Paul Krueger, Semex Director, Sales and Business Development, USA
“ NOT ONLY DOES IVF ALLOW FOR YOUR OPERATION TO REALIZE MORE HEIFERS, BUT IT CAN ALSO CREATE SOME REPRODUCTIVE EFFICIENCIES. ”
Advanced Reproductive Management (ARM)
Continued on page 27
pg 25
IS IT FOR ME?
pg 26
HOW CAN YOU START?
pg 27
it can occur as often as every two weeks and can be utilized on heifers as young as seven months of age. Looking at donors, it’s possible that one donor could produce over 50 offspring in a given year. When you combine these advanced IVF technologies with the use of sexed semen, your top donors can now produce over 90% females!
Not only does IVF allow for your operation to realize more heifers, but it can also create some reproductive efficiencies. In research conducted at Boviteq, Semex’s Research & Development arm, IVF embryos have shown 10-12% increases in conception rate over conventional semen and a 20-30% increase in conception rates over sexed semen. Additionally, because you are working with a fertilized embryo, they’ve proven to be a great reproductive therapy to use during times of heat stress.
WHO SHOULD CONSIDER USING ARM? In order for an ARM program to be successful, interested dairies must already have sound reproductive and management records in place. A reproductive program that isn’t already maximizing heat detection, breeding protocols and has above average pregnancy rates for their region, is better served to first embrace current protocols.
It’s also important that your herd identification be up to par for two reasons: 1) You must be able to select the very best animals within your herd as donors. 2) You must also be able to identify those lowest ranking animals that will serve as recipients.
It’s important to remember that when we amplify our genetics, if we aren’t identifying the best performing and lowest performing populations of our herd, we could easily select the incorrect animals and actually reverse our genetic trend.
HOW CAN YOU START ARM ON YOUR OPERATION? First, have discussion with your herd veterinarian about your herd’s reproduction, and discuss the next steps that are logical for you. If ARM looks like a good option, you will need to identify those animals that are in the top of your herd as potential donors, as well as those that are at the bottom to be recipients.
In order to ensure you’ve correctly identified and are working with the right populations you’ll need to genetically identify your outliers through genomic testing. Finally, have a strategic plan in place to manage your genetics. Without a genetic plan, you will not be fully utilizing ARM as a solution.
Semex is ready to assist you with ARM on your operation through Boviteq’s world-class, state-of-the-art IVF facilities in Madison, Wisconsin, USA and Saint-Hyacinthe, Québec, Canada. Work is already underway, assisting customers with valuable IVF solutions in both the commercial and elite genetic sectors. Those interested in exploring these solutions on their dairy should contact their Semex Genetic Consultant.
HOW CAN YOU START?IVF can occur as often as every
two weeks
IVF can begin as young as
seven months
One donor could produce over
50 offspring each year
IVF embryos have shown
10-12% increase in conception rates over conventional semen
pg 28
Located in the state of Minas Gerais in Brazil, Cenatte was founded in 1982 with the goal of spreading Embryo Transfer (ET) techniques across Brazil. Since then through constant technological research and development, Cenatte has become the leader in In Vitro Fertilization (IVF), producing over 70,000 IVF embryos in 2013 alone.
Recognized as a reference in embryo technology and laboratory procedures, Cenatte was the first embryo company to obtain export authorization, and has exported embryos to numerous countries, including the first milking Gyr embryos to Canada.
Having 22% of the Brazil’s IVF market and laboratories spread throughout the country and abroad, Cenatte has developed strong relationships with beef and dairy customers not only throughout Brazil, but also in Mexico, Costa Rica and Colombia. These relationships have further solidified Cenatte’s strong reputation as a market leader in ET technological advances.
In IVF, major technological breakthroughs have made it feasible for use in commercial settings. For Cenatte, this has been instrumental in several different herd expansion projects, as well as increasing genetic enhancements and reproductive efficiencies in large commercial dairy farms in Brazil. Cenatte, as a major player in the market, has been developing several new important projects that include providing female confirmed pregnancies to large dairy cooperatives that in turn, sell them to their members.
One of these projects is located in Lagoa da Prata, in the state of Minas Gerais with Brazil’s largest milk plants, Embaré.
Embaré’s membership produces over 528,000 gallons of milk per day, and working with Cenatte has developed a project providing Holstein female pregnancies to the Embaré membership.
The genetics are focused on donor dams and sires that have high butterfat and protein, significantly enhancing the quality of the animals. More than 3,000 female calves have already been to Embaré’s members’ farms from this project.
Another important Cenatte segment is the multiplication and marketing of elite tropical dairy breed genetics such as Milking Gyr and Girolando (Holstein x Gyr). Cenatte is well known to have some of the world’s top Gyr genetics, and is constantly producing IVF embryos from their donor cows and marketing top
quality pregnancies throughout the country and world. This service is rapidly expanding due to the ever-growing demand for high quality Gyr and Girolando genetics.
One of Cenatte’s fastest growing services, however, is the use of IVF embryos on commercial dairies, replacing traditional Artificial Insemination (AI). In Brazil, the main dairy regions are dramatically affected by the summer’s heat, making efficient reproduction a major challenge. To help combat this, several commercial dairies have begun implanting fresh IVF embryos instead of using traditional AI.
An IVF collection involves aspiration or an OPU (Ovum Pick Up) on the dairy’s cows or heifers in order to harvest unfertilized oocytes. Cenatte then utilizes sexed semen in order to produce female IVF embryos. These embryos are then implanted in the lactating cows needing to be serviced. The
CENATTE EMBRYOSDr. Claudio Aragon, Director Leite, Semex Brazil
Cenatte produced
70,000 IVF embryos in 2013
Brazil has
22million dairy cows
One of Brazil’s largest dairy farms, Fazenda São João achieves a
42% conception rate with IVF embryos
Cenatte has
22% of Brazil’s IVF market
pg 29
results are extremely promising with conception rates being much higher than what is seen with AI.
Cenatte has been structured in the past to meet the demands of the present and the future. With over 3,500 recipient cows on their own farm, they can provide the services required by the beef and dairy producers with the necessary biosecurity and capacity. They’re achieving above average results because of their rigorous procedures and details. These measures carry through the entire organization from the staff, to the recipient farms, the labs and the quality of the service on farm. This ensures that Cenatte remains the major embryo marketer in Brazil.
Semex has recently developed a joint partnership with Cenatte Embryos. Realizing the great opportunities in working side-by-side, Cenatte has access to the state-of-the-art technologies and developments done through L’Alliance Boviteq in Canada. Working closely, Cenatte and Boviteq are sharing experiences and opening possibilities to explore markets that have high demand for the tropical dairy and beef genetics through export of frozen IVF embryos from Milking Gyr, Girolando, Nelore and other important breeds.
Providing this unique solution to our global customers is now a reality. Semex remains the only AI company to integrate IVF, ET, Sexxed™ semen, research and expertise all in one company. This is Genetics for Life!
pg 30
Mike North, Senior Risk Management Advisor, First Capitol Ag
Will you have a seat when the music stops?
pg 31
At a children’s event that our family recently attended, the organizers decided to host a game of musical chairs. What a blast from the past! I watched as children raced around a dwindling number of chairs assembled back to back while the music played. You could see in their eyes the question, ‘Is now the time?’ Measuring their movement relative to the other kids, they would move forward eyeing the coming seats. Then the music stopped and everyone scrambled for their seat of choice. However, not everyone was successful in parking them selves on a four-legged safe zone. Someone was left standing… Their timing ill-measured, having no luck…and no seat. Game over! In many respects, marketing milk in our current environment is similar. We have witnessed a phenomenal move higher that has surpassed what history would define as normal. We are now in the place where we slowly walk forward waiting for the proverbial music to stop.
Let’s take a look at how history has handled these situations previously (see chart 1 above). An overlay of Class III and Class IV reveals that their collective movement displays a high degree of correlation from one class to the next. More importantly, it reveals quickly the futility of milk in current price ranges. Going back to the export-led 2007 market, prices found a way to stay above $20 for 15 weeks before experiencing its first major setback, only to return to the higher ground for a five week stay. From there, it dropped into the start of 2008 before finding some spring strength to lead it back to the $20+ territory for five more weeks. 2009 was a hole that some never came out of, as fleeting export activity coupled by hesitant domestic consumption caused a great deal of retraction in the quantity of product
demanded, and ultimately the price received by farmers. 2011 produced similar opportunity, as the Class III & IV spent on average 14 weeks above $20, with the Class IV showing the greatest longevity above this threshold. At the time of this writing, we are 16 weeks into our stay above $20 and at levels never before seen. What remains of the year is averaging (May through December) $20.02 in Class III and $17.87 in Class IV. How much longer can we stay here? How much longer can/will the consumer hang on? If history gives any clarity to the future, the song may be almost over. If so, what is our risk?
Given current export activity, the most representative rallies took place in 2007/2008 and 2010/2011 when growing exports and a hungry Chinese economy allowed for price levels to move north of $20/cwt. Using these periods as a model, downside risk will be held to levels only a few dollars below where the averages currently reside. The immediate draw on prices after the highs were established took the price of Class III milk fell to $17/cwt in 2008 and $15/cwt in 2012, before finding enough support to launch its next run. Class IV prices dove a little deeper; support wasn’t found until roughly $14/cwt in each of those two rallies. In early 2013, $17.50 caught the fall of Class IV markets and Class III prices found support near $17 during 2013. In addressing risk, it is plausible to look at short-term risk in the $17 and $17.50 for Class III and IV respectively. However, a longer-term view suggests deeper risk to $14 and $15/cwt for Class III and IV as we get into the 2015 calendar. Why?
You must look beyond the prices to the cycles that the prices follow. Many of you have likely read past articles I have authored about the three year cycle that has defined past decades of milk markets. Some of you may subscribe to it yourself. Some have shrugged it off as invalid given the lack of absolute response in 2012. However, historic droughts have a way of causing such alterations. Take a close look at that period and you will notice that we were very much on course for a repeat prior to Midwestern rainfall taking a sabbatical. 2015 would complete the most recent three year cycle, and creates an even deeper risk than what exists in the short run.
Sure, there will be a lot of discussion about the new era of export activity and why and how prices should never return to such low levels. However, that same conversation was prevalent prior to the ruinous and devastating drop in late 2008/early 2009. Trying to convince yourself of such a result is like playing musical chairs, hoping that the game overseer put the song on a continuous loop and didn’t take away any seats. While producers may enjoy the song that is currently playing, it will come to an end. When the music stops, will you have a seat?
pg 32
WE CAN’T PUT MORE HOURS IN YOUR DAY, BUT WE CAN PUT MORE TIME ON YOUR SIDE! As a herd manager you know how valuable your time is. You need time to feed cows, time to milk cows, and time to breed cows. Most importantly, though, you need that precious time away from the cows to do the things that mean the most in your life. Semex’s ai24™ whole herd management solution with both rumination monitoring and heat detection capabilities can’t put more hours in your day, but it can put more time on your side. It’s time for ai24™.
“The rumination monitoring is a cutting-edge tool. The activity monitoring combined with rumination monitoring gives us a very skilled set of eyes watching the herd at all times.” Ethan Heinzmann, Herdsman, Golden Oaks Dairy, Wauconda, Illinois
C: 0M: 46Y: 73K: 0
C: 0M: 79Y: 100K: 11
C: 0M: 69Y: 100K: 4
PMS: 173
P U T T I M E O N Y O U R S I D E ™
(877) 545-ai24 | www.semex.com
