The boards of directors from Select Sires Inc. and five local member cooperatives have voted to unite the federation to become Select Sires Cooperative Inc., according to a company press release. The decision must next be ratified by delegates or member-owners from each of the five member cooperatives. If approved, Select Sires will remain a farmer-owned and controlled cooperative.

“The decision to unify is going to be a pivotal force for Select Sires. We have had a tremendous history of success, but we can’t lean on our laurels,” said Dorothy Harms, chairman, Select Sires Inc. Board of Directors. “We must move forward, look to the future and make changes to secure our position as the industry leader.”

 “The Select Sires Board has done an amazing job of forward thinking and strategic planning and then taking something that is an emotional issue and turning it into something that takes the best of what Select Sires has been successful at over the years and to bring that forward and then add in the things that we need to do as an organization to be successful in the future.” says David Thorbahn, president, and CEO of Select Sires.

The Bullvine had the opportunity to sit down with Dorothy and David to get answers to many of the questions that farmers have been asking.

Why Now?

“When you look at the genetics industry, specifically The Bullvine Article entitled The Stud Wars, it becomes very apparent that the competition is very keen within the industry and, as Select Sires has a history of being a leader in AI, I think remaining at status quo leaves us liable for losing some of that positioning within the industry.  So, we felt that the member coops coming together can be stronger together, as a cooperative, and we can better align resources and people to best serve producers across the country.” comments Harms.

“This is not a snap reactionary decision” Harms shares, “Starting in 2016, the board with the help of Dr. Allan Grey from Perdue identified that research and development in the agriculture sector is growing at an exponential rate and if Select Sires wanted to continue to be a global leader in the bovine breeding space, they would need to invest significantly more.”

David Thorbahn points out that “We have to fund this through our own industry, whereas some of our competitors can do that with funds that come from other industries.”  Not wanting to increase prices to their customers or charge for services they don’t currently charge for, it was decided that they had to find other ways to fund these initiatives and be able to continue to be a global leader.

“Future needs include embryo transfer services to reduce the cost of sire development as well as biopsy and genotyping embryos to increase the rate of genetic progress while reducing costs. A genomics lab is needed to reduce program expense and provide genomic service to our farmer-owners. Select Sires has collected and has access to data, but we must have scientists to develop management solutions and expand investment in next generation technologies of sexed semen.” reports Thorbahn.

What does this mean for farmers?

The board is also not wanting to change the fact that Select Sires is farmer owned and farmer led. So, in working with Dr. Michael Boland, they decided that the current boards of the member cooperatives would form a representative assembly of about 45-60 producer members, and their role would be to oversee the operations and set the direction for Select Sires Cooperative Inc. Select Sires is an industry leader, and market share leader in the US and the board is not wanting to change the service. What they do see is the opportunity to streamline and increase the efficiency of how the organization supports those service representatives.

“I think, short term service should not change at all, but long term, I think it will improve” comments Thorbahn.  “The reason is we are going to be able to improve speed to market more products and services and do it in a way that is less costly to deliver. “

“As our member coops currently sit, none of the territories overlap, so there is no need for any changes there” points out Harms. One of the directives from the board is that there would be minimal if any changes to the customer facing portion of the business. “These are the people that really are the strength of Select Sires.  There will be the same technicians, sales managers, the same people coming onto the farms as currently.” adds Harms.

The proposed benefits to customer-owners include: access to a broader, more diverse team of experts; increased efficiencies will ensure long-term sustainability for the cooperative; and valuable investment in research and development translates to innovative solutions and tools for dairy and beef producers.

Not all member cooperatives are in favour. Why is that?

“While we cannot speak for them, it is important to remember that we are a federation of farmer-owned cooperatives and this decision was made by their board. This plan allows Premier Select Sires to continue as a part of the unified Select Sires and provides their members with access to the genetics. We can tell you they will not be able to take advantage of some of the same benefits as those members joining the unified cooperative, such as board representation and input on the cooperative’s direction. The opportunity for them to join is certainly something that could be revisited down the road.” adds Harms.

Who will have control?

Select Sires Inc. was founded on cooperative principles and will remain a farmer-owned and farmer-led organization. “And with that we wanted to ensure that we could remain a grass roots governed organization by farmers.” Harms adds. The current member boards of farmer directors will become the representative assembly. The representative assembly will meet at least four times per year, with at least one meeting to be held in-person, to discuss cooperative matters and provide guidance for the board of directors. The board of directors will meet four times per year in-person and provide direction for the cooperative. In the future, members of the representative assembly will be elected by member-owners in their respective divisions throughout the U.S., maintaining a grassroots cooperative. Committees will be developed to monitor local service to mirror the current cooperative territories. The representative assembly will elect a board of directors, which is like the Select Sires board today.

“This is the way that we take the best of what we did before, which was a grass roots cooperative, and improve it by improving the communication and coordination of the board and it’s ability to govern the cooperative going forward. We get the best of being local and the best of being a global entity.” says Thorbahn.

What changes internationally?

The global piece unified in 2017 with the merger with Accelerated Genetics, with that we assumed 100% control of World Wide Sires” says Thorbahn.  Outside of the Americas, Select Sires is marketed under World Wide Sires and has developed a strong brand and has no plans to change that. They will continue to represent their three brands, Select Sires GenerVations for elite dairy genetics, Accelerated Genetics known for high commercial value, and the Select Sires brand known for being America’s best.

What is your vision/goals?

“In our vision statement we talk about being a global leader, being the premier provider of bovine genetics to producers across the globe, as well as providing a great place for our employees to be working.” points out Harms.

“We are fortunate to have a board that is very much looking to the future and setting the direction to go and has the confidence that management can achieve this.”, comments Thorbahn, and as a result in 2016 the board set the goal to double their business in 10 years and, three years into that strategic plan, they have achieved their 5-year milestone.

“Our goals are almost 5-fold.  We need to be a tier one genetics company, but I believe that genetics in the future will be achieved by both semen and embryos.” says Thorbahn.  “With the advent of sexed semen, dairymen are now able to produce their own replacements. We will need to deliver elite outcomes not only on the sexed semen side, but we will also need to deliver the most value outcome on the remaining part of the herd, representing 30-55% of the cows.   In some cases, it will be an elite dairy beef animal or it could also be a full blood beef animal from an embryo, which would bring you an even higher value calf” adds Thorbahn.  With that comes the need to develop and ensure that Select Sires is a premier provider of the programs and genetics these outcomes require. Thorbahn also highlights the need for data management, “We have several major projects going in this area that will show fruit over the next couple of years.”  Select Sires is also looking into what is the 2^nd generation of sexing semen, from possible means of gene editing to make an animal that only produces one sex, as well as continuing to be elite in the quality of the semen they produce.

When will this happen? What is the timeline for execution?

Select Sires Inc. and member cooperative boards voted in support of unification. The decision must now be ratified by member-delegates and member-owners. If unification is approved, it is estimated that Select Sires will transition to a unified cooperative by July 2022.

What happens after that?

“I think the heavy lifting comes on delivering on the business plan the board has set forward. Some of that can not happen till the board gives the direction to go ahead.  Once that starts there will be a lot of work for a lot of people. It will be very exciting work because everyone realizes they are doing this to improve the long-term sustainability and strength of Select Sires” comments Thorbahn.

The Bullvine Bottom Line

While these changes will certainly alarm many, there could also be an argument that this should have happened 10 years ago.  The industry is becoming more competitive than ever and stakeholders need to be as efficient as possible.  With making this move, Select Sires boards are demonstrating that they are willing to make the challenging moves to set up the cooperative for the future.

The world has been battling one of the greatest viruses to ever hit man and now, just like the battle with Covid-19, the war between the Artificial Organizations has heated up to epic proportions.  What started as The Battle for A.I. Supremacy back in July 2013, has seen many changes in the power struggle when it comes to sire lineups. Many of the smaller A.I. units have been purchased by larger genetic players, and the rate of change has accelerated considerably. Let’s see who has come out on top this year and who has fallen behind in the genetics race.

TPI

While Select Sires once dominated with 52% of the top proven sire TPI ranks back in Stud Wars Episode IV – The Force Grows Stronger 2016, they still hold control though ABS Global has bounced back in recent years and now occupies the #2 spot, by filling their genomic pipeline three years ago.  Also coming on strong is STgen who, like ABS Global, made significant investments in recent years and saw positive returns.  Of interesting note is that despite the merger of Genex and Alta Genetics that held a combined 28% back in our initial battle for supremacy, they now only occupy 8% combined. 

There is no question that ABS global has gone heavily into the top Genomic TPI sires.  With 41% of the top sires, they have control over the top end TPI sires in the world. Some key partnerships with De Novo Genetics (De-Su Holsteins), Windstar Genetics and Pine-Tree Holsteins have paid dividends for ABS.  Topping this list are Genosource Captain and his two clone brothers Jack and John available from STgen.

At one time there were many players in the Top TPI sire lists. But with sexed semen and AI companies launching their own female programs, the top TPI sires are now controlled by very few organizations.  ABS has taken over the crown from Select Sires. The two companies now control over 59% of the top TPI sires in the world.

NM$

Continuing their dominance from the top TPI lists, Select Sires and ABS Global also dominate the NM$ proven lists.  Of interesting note here is that Semex has come on in this category and now occupies 15% of the top proven NM$ sires.  STgen has also seen significant improvement as a result of heavy investment in genomic NM$ sires three years ago (16% of total) which has translated into 12% of proven NM$ sires. 

Looking to regain the lost ground on the proven NM$ sires lists, Alta Genetics/Genex’s Peak program has invested heavily to regain ground lost to the other organisations. 

While Select Sires maintains their crown as the best source for NM$ sires, ABS Global has regained ground over the past three years and is now tied with Alta Genetics/Genex for the #2 spot.  Semex has been the biggest mover in this category over the past three years and now holds the number three spot with 16%.  If the ABS investment in top genomic NM$ sires three years ago is an indicator, watch for Alta Genetics/CRI’s Peak program to move them up on proven sires lists shortly.

PTAT

Semex and Select Sires continue to have over half of the top PTAT proven sires in the world.  The interesting part about the top PTAT proven sires is that there is still a significant portion, 31% of the sires, that are not controlled by the major AI companies.  ABS Global’s significant investment in top Genomic PTAT sires three years ago has seen their share go from under 6% to 12% now.

What was at one time controlled by a select few organizations, the top PTAT Genomic sires are currently spread out among many organizations.  Of interesting note among them are the relatively new Blondin Sires in Canada and Ascol from Spain who both have over 10% of the top genomic sires. This is pretty impressive considering the size of their organizations.

What was once a category where Semex and Select Sires controlled over 55% of the sires, there are now several AI companies making their play for this marketplace.  Watch for Ascol and Blondin sires to move up, as their recent investments in top genomic sires should pay dividends and result in more top proven sires.

Polled

Polled sires was once a segment that many of the larger organizations did not show much interest in. It now sees all the major AI companies holding a significant share of the top sires.  The one standout among these giants is Vogue, which is operated by David Eastman, the man behind GenerVation’s program before selling to Select Sires, and Sean and Kelly O’Connor.  (Top 100 TPI Polled sires were included.)

Red and White

Significant investments by STgen have changed the red landscape in recent years.  With new players like Blondin Sires, with sires such as Unstoppable, the red landscape continues to change and is certainly one segment of the marketplace that will probably see the greatest change over the next three years.  (Top PTAT 100 Red & White Sires used.)

The Bullvine Bottom Line

Select Sires retains its crown as the top source for proven sires.  The biggest change over the past three years has seen ABS Global regain its market share and is now tied with Semex for the 2nd strongest proven sire lineup.  STgen has also shown significant return on their investment in genomic sires and now cracks the top 4.

By just 6 sires Select Sires maintains the #1 spot for genomic sires.  Players like ABS Global and the Peak program from AltaGenetics/Genex are making significant impact on who has control of the top genomic sires worldwide.

Select Sires retains the crown as the best sire line up.  Of interesting note are the gains made by ABS Global that has almost doubled their share of the top sires and now is the 2nd best sire line up worldwide.  Semex maintains its share and holds the #3 spot, followed by STgen that has increased their market share. 

As the performance over the past 6 years of doing this analysis shows, A.I. organization global positioning is not a forever  – it is only maintained if an investment is made in the very top genomic sires.

In a Bullvine video exclusive join Select Sires Sire Analyst Rick VerBeek, as he tours us through some of the top proven sires at Select Sires. Including JEDI, RAGER-RED, GOLD CHIP, CHROME and VALENTINO. See these amazing bulls as the parade around the Kellgren Center.

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In a Bullvine video exclusive join Select Sires Senior Sire Analyst Kevin Jorgensen, as he tours us through some of the top proven sires at Select Sires. Including MOGUL, SUPERSIRE, MONTROSS, & JEDI. See these amazing bulls as the parade around the Kellgren Center.

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In a Bullvine video exclusive join Select Sires Genomics Program Manager Jeff Ziegler, as he tours us through some of the top proven sires at Select Sires. Including MOGUL, SUPERSIRE, MONTROSS, & JEDI. See these amazing bulls as the parade around the Kellgren Center.

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Sexing Technologies is the fastest growing company in the dairy genetics industry.  Through the acquisition of semen sexing patents as well as their own research, Sexing Technologies has become the major player in the marketplace.  Now Sexing Technologies has it sights on becoming a significant player in the artificial insemination industry.  Through the purchase of companies like TAG and Taurus and investments in AI companies in Europe, Sexing Technologies has been making waves in the dairy industry, with the potential for more to come.  Recently they have had the #1 proven TPI sire in the world and have been very aggressive in acquiring top genomic males and females around the world. To learn more about this aggressive company, The Bullvine sat down with Sexing Technologies CEO Juan Moreno and the head of dairy programs Dan Carroll to find out the secret to their success and what the future holds.

Read more:

• TAG Acquired by Sexing Technologies
• Sexing Technologies acquires Taurus-Service Inc.
• ABS Global vs. Sexing Technologies: It’s Just Business

It has been a deal that has been expected for years, yet it seemed like it might never happen.  Never in history has the livestock genetics industry seen a rate of change like it has over the past ten years.  With many of the small to medium AI companies being sold, it was only a matter of time before we started to see some of the larger programs either be sold or start to merge to stay competitive.  With the July 1st merger between Accelerated Genetics and Select Sires Inc., we see the two companies that partnered together internationally in World Wide Sires become an even greater force to be reckoned with in the US and around the world.   

As the dairy industry has evolved rapidly in recent years with the commercial adoption of genomics and sorted semen, margins have become smaller, and profitability became more elusive. Janet Keller, President and CEO of Accelerated Genetics gives her viewpoint on the strategy that led to this merger. “Over time, one of the greatest strengths that our cooperative leveraged was that of vision. The leadership at Accelerated Genetics felt it was time to move swiftly to look at opportunities to partner with another genetic organization that had a similar vision, culture, and organizational structure.” From the staff side of the merger, Janet Keller expands on the decision. “One of our cooperative delegates expressed it well, ‘Now is the right time for our cooperative to make plans for the future and join forces’.” Keller had been hired by Accelerated Genetics at the beginning of this year as their President and CEO after the company had posted a $2.6 million net loss last year.  

“The dairy industry, through ambitious research and development, has leaped into a rapidly growing environment that has extended beyond our ability to maintain, much less thrive” stated Vice President Marketing Communications at Accelerated Genetics, Angie Lindloff.  With that “Accelerated Genetics has been searching for a partner who could enhance the business and move it forward,” comments Scott Dahlk, Accelerated Genetics Board Chair.  “So, it only made sense that the company that it already was working within Europe, Africa, Asia, the Middle East and Oceania would become its dance partner in the US and the rest of the world.” 

The discussion between the two co-operatives started with an invitation to talk from Board Chairman Scott Dahlk at Accelerated Genetics to Select Sires’ board chairman Dan Andreas in December of 2016.  Given the nature of the agreement between the two companies in World Wide Sires and its co-operative structure, Accelerated had a limited number of potential partners, and ultimately that is why Select Sires become the obvious partner going forward.  

From there the discussions continued between the two organizations’ representatives about how they could work together and structure the deal.  Then, on June 13^th, as speculation in the industry started to build, the two organizations announced the potential deal that would see Select Sires acquire the assets of Accelerated Genetics, and join the forces of employees and independent sales representatives in each of their geographical member organizations. (Read more: SELECT SIRES INC., AND ACCELERATED GENETICS TO JOIN FORCES). At a special delegate meeting held June 22, 2017, Accelerated Genetics voting delegates voted in favor of uniting Select Sires Inc. and Accelerated Genetics, formally finalizing the agreement recommended by both cooperative’s boards of directors. (Read more: ACCELERATED GENETICS DELEGATES VOTE TO JOIN FORCES WITH SELECT SIRES, INC.)

As a result of the merger, producers will see that “the creation of a larger sire program, coupled with high fertility, will provide all member/owners with more choices at a competitive price. The ability to spread costs over a larger market will enable Select Sires to continue to be the AI leader in bovine genetics, services and research and development.  It is a win-win situation for dairy and beef producers across the U.S.” comments Dan Andreas, Chairman of the Board of Directors, Select Sires, Inc.

Similar to when Select Sires acquired GenerVations back in 2014, it is expected that most client-facing representatives will be retained, though in a slightly different structure.  (Read more: SELECT SIRES ANNOUNCES THE ACQUISITION OF GENERVATIONS INC. AND SIRE LODGE INC.)  Unlike the GenerVations acquisition, where there was a limited amount of overlap with representatives in each region and the two organizations merged into one sales force, it is anticipated that in this merger there will be two separate lineups for representatives of each organization.  Given Select Sires dominant sire lineup and genetic programs, this will be a big win for those Accelerated Genetics representatives that have seen their share of top sires go from 6% back in 2015 to under 3% in 2016. With the two merged programs now representing 36% of the top sires, the merger holds 18% more top sires than the nearest competitor.  (Read more: STUD WARS EPISODE IV: THE FORCE GROWS STRONGER – 2016, and STUD WARS EPISODE III – THE CONFLICT FOR CONTROL)

Dave Thorbahn, Select Sires’ President, and CEO comments, “It is pretty early to speculate on all staff positions, but our goal is to attract passionate people at all levels of the organization. At Select Sires and Accelerated Genetics, we value people, as they are a leading reason for our success. We also plan to expand the use of the Accelerated Genetics production facilities in Westby, Wisconsin and will retain employees to accommodate that growth. This also provides opportunities to office employees as well, to support the production, product management, and operational efforts.”

With the merger also comes speculation about what this means for World Wide Sires.  Thorbahn comments, “World Wide Sires is one of the most respected sales organizations in the world.  It has been very successful in growing sales and has represented both Select Sires and Accelerated Genetics around the globe for years. While World Wide Sires will now be wholly-owned, it does not mean major changes.  With one organization now owning all the shares, it will give us an opportunity to work more closely with World Wide Sires and make us more synchronized to better serve the producers around the world.”

For those of you wondering what will happen to the Accelerated Genetics website, which has become one of the most popular resources for searching for sire genetic evaluations, Janet Keller shares with us that “Accelerated Genetics has worked diligently over recent years to provide a resourceful and relevant website for breeders and industry associates around the world. Plans are underway to continue to provide the best information in a timely fashion to people that visit the website moving forward. Dairy and beef sire information, animal health product solutions and cooperative news are just a few of the great resources found on the website. Stay tuned for even greater content.”

The Bullvine Bottom Line

One could very accurately argue that the dairy cattle genetics industry has changed more in ten years than it has ever done before in its history.  With that comes the need for organizations to either change or close their doors.  When Select Sires was formed back in 1965, it was Accelerated Genetics (then known as Tri-State Breeders) deciding not to join the newly formed co-operative and instead to take their own path. Now, 52 years later, we see these two co-operatives finally merging and further cementing the position of the Select Sires Federation as the greatest force in the dairy breeding industry in the world.

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In a Bullvine video exclusive join Select Sires Holstein Sire Analysts, Kevin Jorgensen & Herby Lutz, as they tours us through some of the top proven sires at Select Sires.  Including MOGUL, SUPERSIRE, MONTROSS, IRWIN & VALENTINO.  See these amazing bulls as the parade around the Kellgren Center.

MOUNTFIELD SSI DCY MOGUL
“Mr Customer Satisfaction” – The Modern Day Elevation

SEAGULL-BAY SUPERSIRE
#1 NM sire in the breed
A very special sire in the history of Select Sires Inc.

BACON-HILL MONTROSS-ET
One of the youngest sires to receive an official proof in history. The next great impact sire from Select Sires Inc.

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What started as The Battle for A.I. Supremacy back in July 2013, has seen many changes in the power struggle when it comes to sire lineups. Many of the smaller A.I. units have been purchased by larger genetic players, and the rate of change has accelerated considerably. Let’s see who has come out on top this year and who has fallen behind in the genetics race.

TPI

Select Sire’s dominance in the top genomic line-ups back in 2013 has helped them almost double the number of proven sires in the top 50.  Select has gone from a respectable 20% to sheer domination of the list with 52% of the sires.  While Select’s fortune shines as a result of their early adoption of elite genomic sires, ABS has suffered from not targeting these elite sires three years ago. As a result, they went from the strongest player with 28% of the market than to today’s discouraging record which shows that they have none in the top 50.

Continuing to work with what has been successful, and maybe seeing what has happened to ABS over the past few years, Select is not resting on it laurels and continues to invest heavily in providing the top Genomic TPI sires as well.  Also making significant investments in the high gTPI genomic sires, is Sexing Technologies, as they very aggressively seek to grow market share through product development.

Never in history has the breeding industry seen one force as dominant as Select Sires is today when it comes to genetic offerings.  Smart investments in procuring the bloodlines that make great sires has lead Select Sires to a 42% market share in the top TPI sires.  That is an increase of over 17% over three years ago and 28% higher than the next strongest TPI lineup at Semex.  ABS’s late change in implementing a genomic sire strategy has seen their once 2^nd most potent TPI list fall to be tied for #6.

NM$

Select Sires’ progressive genomic approach back in 2013 has helped them maintain the lead in the top NM$ proven sires lists.  Conversely, ABS’s lack of aggressive procurement back in 2013 of top NM$ genomic sires has seen their 27% market share of proven sires drop to 8%.

Select Sires continues their aggressive development and procurement of top genomic NM$ sires.  Also stepping up their programs is Sexing Technologies that has increased their share from 6% back in 2013 to 16% now.

What was once boasted as reflecting the great balance among the top A.I. organizations back in 2013 has now become a one horse race with Select Sires possessing 40% of the top NM$ sires in the world.  All other organizations have seen their share decline, except for Sexing Technologies, which has seen their market share triple to 9% on the strength of an aggressive genomic program.

PTAT

Taking over the reigns as the top proven sire lineup for PTAT is Semex.  They have seen their 30% market share of the top genomic sires for PTAT back in 2013 become 30% share of the top proven sires in 2016.  Similarly, former #1 proven PTAT line up of Select Sires has fallen from 36% back in 2013 to 24% now, reflective of their 28% genomic market share back in 2013.  Due to the dominance that Semex and Select hold in procuring these top sires, it is now a two-horse race, with no other organization having over 10% market share of the top proven PTAT sires.

Seeing that a strong genomic PTAT line up is the best way to achieve a strong proven sire lineup, Semex has upped its game to now possess the strongest gPTAT line up in the world.  Flip flopping with Semex, Select continues to maintain a very strong lineup with the two organizations having almost 60% of the top sires and no other stud with more than 12% (ABS Global).

Although it had been a relatively dominant win for Select Sires back in 2013, it is now Semex that possesses the strong PTAT lineup.  The other clear point is that when breeding for type, it is a two horse race with no other stud owning more than 9% of the top PTAT sires.

Polled

While Polled was not included in our lists back in 2013, there is no question the larger studs have taken notice.  Today, the likes of dairybullsonline, that once had 20% of the top Polled sires, now find themselves with less than 5%.  (Note: for list we used the top 50 TPI polled sires)

R&W White

R&W sires are still the one area that has been the most diverse when it comes to the list of ownership by the top organizations. Select Sires looks to be changing that, going from 14% when we first looked at this back in 2014 to 32% currently. (Read more: Stud Wars: Episode II – April 2014)  This is a result of purchasing GenerVations that had the third strongest R&W line up back in 2014. (Note for list we used the top 50 PTAT R&W Sires)

The Bottom Line

The timely move to an extremely aggressive genomic program three years ago has taken Select Sires from 26% share in 2013 to a very dominant 42% today.  Benefiting from the 2^nd strongest genomic line up back in 2013 has lead to Semex going from 8% market share to now possessing over 17%.  As a result of a genomic program that accounted for less than 8% of the top sires in 2013, ABS Global has gone from 18% market share of the top proven sires in 2013 to 5% currently.

With these results Select Sires and Semex have seen from their previous investments in top genomic sires now becoming top proven sires, so it’s no surprise that they continue to be the biggest investors in top genomic sires.  A dark horse that is coming on very strong in recent years is Sexing Technologies that now possesses the third strongest genomic sire lineup at 14%. This is up from 6% back in 2013.

What was once a strong force with 28% of the top sires in the world, Select Sires has grown its dominance to where they now possess 33% of the top sires.  Semex continues to hold steady with the 2^nd strongest sire line up with 18% share.  The biggest mover in this Star Wars episode is  Sexing Technologies that has gone from the 7^th most potent lineup and 4% share back in 2013 to 4^th strongest and a 9% share.

For complete genetic evaluations from around the world click here.

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Select Sires commitment to success began 50 years ago when four cooperatives, owned and managed by dairy and beef producers, began working together to achieve more than any individual cooperative could accomplish.

Built of the shared belief that “Your Success in Our Passion”, Select Sires and its federation have delivered products and services that have helped dairy and beef producers reach their goals. This has led to the fact that today more dairy and beef producers “Select America’s Best” more often than any other provider.

To celebrate 50 years of Select Sires helping the cattle industry reach new heights, Select hosted a celebration attended by past and present employees, media, and industry leaders to celebrate their anniversary. David Thorbahn CEO of Select Sires acted as the master of ceremonies introducing visitors from Japan, World Wide Sires, LT Governor of OH, and past general manager Richard Chichester. Memories from employees, board members from the past 50 years put Select’s passion and commitment on display for all those in attendance. The attendees were treated to a unique video presentation showing the history of the organization.

In an exclusive interview the Bullvine, David Thorbahn – President and CEO of Select Sires Inc sits down and chats with us about their 50 years, the achievements they have made, and the challenges that face them going forward.  Managing the largest artificial insemination co-operative in the world is not easy.  David’s shares with use how he became manager, the challenges he faces as well as advice to those who aspire to one day achieve similar success.  Watch this video and find out just what makes Select Sires special and why investing in top quality genetics from great people is the best decision you can make for your dairy operation.

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The Bullvine caught up with Charlie Will, Holstein Program Manager for Select Sires to discuss his 40+ years with Select Sires, their sire programs, and the many impact sires they have had over the years.  Charlie has been involved with the selection and sampling of some of the greatest bulls in the history of the Holstein breed.  In this exclusive interview with the Bullvine Charlie shares with us how he career got started, the turning point that rocketed him down the road to success as well as shares with us the they story behind the greatest bulls Select Sires has ever sampled, and just what sires are the next generation of impact sires.  Don’t miss this opportunity to learn from one of the best in the business as he shares with us his advice and experience.

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In a Bullvine video exclusive join Select Sires Holstein Program Manager, Charlie Will, as he tours us through some of the top proven sires at Select Sires.  Including PLANET, MOGUL, EPIC, GOLD CHIP and BRADNICK.  See these amazing bulls as the parade around the Kellgren Center.

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Juan Moreno (Co-CEO Sexing Technologies), Maurice Rosenstein (Co-CEO Sexing Technologies), Natalia Rodrigues (Vice-President TAG), Patrice Simard (President TAG)

More and more over recent years we have seen smaller A.I. companies being purchased by larger genetic organizations.  Most recently the world’s fastest growing dairy genetics company, Trans America Genetics (TAG), has been acquired by Sexing Technologies (ST) the world leader in sex-sorted semen.  (Read more: TAG Acquired by Sexing Technologies) We sat down with the executives of both these organizations to understand the artistry of this deal.

Patrice Simard (President TAG) and wife Natalia Rodrigues (Vice President TAG)

Patrice Simard, President Trans America Genetics

TBV: How did this deal come about?

P.S.: It came about as the result of some discussion we have had over the years.  We have known Juan Moreno for quite some time now, even before we launched TAG.  We have always been watching and inquiring about what Sexing Technologies has been doing. We always valued Juan as  person, as a visionary, for the great work he has been doing, and what he brings to this industry.  One discussion leading to another, we started to realize that there were certain synergies between TAG and ST that were very complimentary to one another, and that triggered some deeper discussions.

TBV: How does this affect the TAG brand?

P.S.: It is a mutual feeling that the brand and the name we have been able to develop here at TAG is partly what triggered ST’s interest in acquiring TAG. ST has some very high-quality products, high gTPI and gLPI genomic sires that are comparable, if not better, to the kind of products the TAG brand has been associated with. The plan is to maintain the name, with the addition of by ST at the end, TAG by ST. The name TAG has been well established in many markets and offers a premium brand to the ST offerings. Sexed semen has a broad range of marketplaces, but certainly is prevalent in the premium high index market where TAG has been able to ascertain its brand.

TBV: What changes can people expect as a result of this deal?

P.S.: As a result of this deal breeders can expect a much bigger presence of both companies. TAG has done substantially well for the resources that were available.  This arrangement enhances the reach and resources accessible to further build the organization.  The philosophy and the ideology behind the selection and the promotion of sires of the two companies are very similar.  As a result, there should not be any change in direction, but rather an acceleration of the process. This deal make it possible to do even more of what we have already started. In Canada, that means that we now have access to the entire offering of programs, genetics, and sires from both TAG and ST. Obviously this gives TAG an edge and a much larger portfolio to offer our breeders.

TBV: What changes will there be for current staff?

P.S.: The way the deal was structured permitted us to keep all our team into place. The current staff will keep on driving forward. The whole TAG team is excited and enthusiastic about the possibilities ahead. Through the worldwide TAG network, everyone is very excited by this opportunity.

TBV: What changes will there be for distributors?

P.S.: Nothing changes for our worldwide distribution network.  The TAG channels that are in place will continue to grow and develop. Of course with this deal there is the opportunity to improve and expand some of these channels. Certainly in the mid and long term there will be a desire to significantly increase TAG’s reach in new markets, as well as improve on markets where there are some weaknesses. For sure the TAG channels and networks have done very well for the organization.  They are almost entirely exclusive to TAG, so now the potential to move a much broader product offering is very exciting for the distributors as well. We expect this greater breadth of product offering to help grow the TAG distribution network.

TBV: Will there continue be TAG sires being sampled?

P.S.: There are still many details that need to be looked at under a microscope in order to make decisions for the long term. As of now, we need to go through a transition period, optimizing logistics, integrating inventories, discussing different types of bulls and their positioning in various markets.  Also, there is a need to look at the different philosophies, a mix of cultures and see how TAG can integrate into the ST network.  However, one thing for sure there is a lot of great genetics, so it’s never an issue to put an exceptional product offering out in the marketplace.   Now the how to and the branding them, and those decisions we still have a lot of work to do to put a comprehensive strategy together.

TBV: What reaction to expect for TAG shareholders?

PS: Well, over the last few months, little details of the ongoing negotiations with ST made it back to different partners, and they have inquired Natalia and I about it. Their reaction has been very positive. They have seen the company they helped to start, grow up before their eyes.  Just like a zealous mother looks after her growing child, our partners have been there, supporting us through each step in this maturation process. Most of them have been able to get some financial return through different incentives and programs.  Our semen discount program will remain for them, and we are very proud to continue this.  We expect them to be pleased with the many great TAG accomplishments.  And we certainly hope they will take advantage of their preferred pricing to acquire excellent conventional and sexed semen products to increase their herds’ profitability trough genetics!

(Read more at The TAG GAME PLAN – 5 Years from “Startup” to “Game ON!”)

Juan Moreno, Co-CEO of Sexing Technologies

Juan Moreno, Co-CEO of Sexing Technologies

TBV: What first caught your attention about TAG?

JM: I have been following TAG since it started.  I think the concept was a very very good concept.  They made tremendous strides in the marketplace in branding and image and also did a very good job with sourcing bulls.  So they had a good lineup of bulls with a strong brand.   On top of that they had some great people working with them.  Ultimately is always about the people.

TBV: How did this deal come about?

JM: Good questions, well I guess you hear through the rumor mill about changes going on at all different organizations and especially in the marketplace that affect all companies, and we saw an opportunity based on these market changes.  I have known Patrice for over 7 years, so we started some conversations, first kind of just scratching the surface and jokingly but then over time those conversations slowly progress and you begin to talk more and more.  You never know if it is possible to find a deal that works well for everyone and it can take a long time to reach that point.

TBV: How does this deal benefit Sexing Technologies?

JM: I think it all about trying to make sexed semen available from high genetic value sires in the hands of dairy farmers. TAG had certainly built a network of people who were achieving just that. In addition, there is the ability to greater progeny test sires through the system that TAG had developed was very interesting and will benefit the growth of Sexing Technologies.   The lineup of young sires that they have was very impressive, with many top genomic sires.  And the staff is young and energetic and a great group of people that see the changes that are occurring in the industry and have a lot of good ideas but have not had the resources to always execute on them, that now they will have that opportunity.

TBV: What will the structure be going forward?

JM: TAG will continue to operate pretty much the way it has operated in the past.  I think there are some things that we can add to TAG, most notably sexed semen in their lineup.  I addition I think there are certain things that TAG can add to ST, but for the most part it will remain as it has been.

TBV: How will this affect your international distribution?

JM: The network that TAG has built will remain intact.  TAG will continue to service their clients the same way they have in the past. If anything now they will have an even great product offering to provide their customers.  The addition of sexed semen and more sires offers their clients worldwide even more to get excited about.

TBV: What changes can breeders expect as a result of this deal?

JM: The biggest changes breeders can expect is the addition of sexed semen.  TAG did not have sexed semen in their pipeline in the past, so that is the most significant change that breeders can expect.  The number two change that most breeders can expect to see is that there will be a greater selection of sires available.

TBV: With many changes recently and ST continuing to grow, can we expect more changes coming soon?

JM: Our primary focus is on the technology side and the ongoing improvement of the technology. So from that aspect you can expect to see continued changes.  Our genetics part is not large, we are one of the smallest bull studs in the marketplace, so we are not large in respect to the genetic side of things.  The biggest changes to come are in the continued improvements in the technology, in both sexed semen and conventional semen. We are now starting to dedicate many resources to conventional semen improvements as well.

(Read more at: SEXING TECHNOLOGIES: Gender Vendors in a Changing Marketplace)

The Bullvine Bottom Line

There is certainly no question that the dairy genetics industry is going through it greatest changes in history.  Genomic, IVF, and sexed semen have certainly been major game changers.  With these technologies has come changes in how companies operate.  As the marketplace has changes, companies have had to react.  In the acquisition of TAG, Sexing Technologies continues to be a leader in this changing market.  Always looking for ways to move forward ST has been driving change instead of reacting to the action of others. This deal certainly demonstrates that those with technological differentiation are certainly going to be in the driver’s seat going forward.

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So you have a high testing bull that all the A.I. studs want…Great! Now the headaches begin.  Sure the day you got the test results back it felt like you had won the lottery. But it’s not that simple. There is a lot more work to be done.  You see, picking which A.I. center to lease your bull to is a lot more complicated than most think.  It’s not simply figuring out who will pay you the most money.  Anyone who has read a sire lease agreement knows that you need a masters in law and mathematics in order to calculate just how much money you will actually get paid.  With that in mind the Bullvine decided to highlight some of the key factors that many breeders may not be paying enough attention to when they decide who to lease their bull to.

Market Share & Distribution

Bigger is not always better (Read more: Does Size Matter).  Having said that, when it comes to which stud to lease your bull to, size can’t hurt.  Think about it. The big 5 studs have more than 10 times the distribution of even the medium studs.  That would mean that you need to get 10x the % royalty that you would get from a smaller stud.  For example if Stud A has a 25% market share and offers a 10% royalty, a smaller stud that has say 5% market share would have to offer 50% royalty in order to deliver the same net revenue.

Market Segment

Probably just as important as market share is market segment.   This means that you would not lease a high type sire to a stud whose core clientele is commercial producers.  They just would not have the correct distribution network to move the maximum amount of semen for you.  For example, studs like Alta Genetics, Genex and ABS have a strong commercial producer clientele, so a NM$ sire would be better to lease to them than a high type sire would be.  Conversely, studs like Semex and Select Sires have strong type lineups. Hence they have developed great distribution channels that work well for show and pedigree breeders.

Taking this one step farther, it’s also important to see how strong that studs lineup is that would compete with your bull.  For example Select Sires has a strong all around line-up (Read more: Stud Wars – The Battle for AI Supremacy), so your bull may be one of many top sires to market in that segment.  Whereas studs like ABS and Accelerated have a strong market segment to the commercial producers, but currently do not possess as strong a lineup of NM$ sires in relation to their market share.  Leasing your high NM$ sire to one of these studs would probably result in greater marketing and distribution efforts for your sire, as it would be more unique in their lineup, and still be in that stud’s wheel house.

Marketing/Lease Agreement

Seth Godin probably said it best “Never sign a contract or make an investment that you don’t understand at least as well as the person on the other side of the transaction.”

In reviewing many of the contracts offered by most studs these days, the wording is so vague about what you will actually get paid, and who owns the rights to what, that it can be hard for most non lawyers to even understand what you are signing.  You may know the stud’s personnel or the sire analyst that you are dealing with quite well. But what happens if they get fired?  What happens if new ownership or technologies come out?  Things like first release semen, cloning, etc are all key parts of any agreement. These are just a few of the details that you need to understand clearly.

We keep a law firm on retainer for all contracts we sign for the work that we do.  This has helped since starting the Bullvine for those interesting times when some threaten to sue us.  When I showed our lawyers the contracts that the major A.I. studs have breeders sign, they first laughed, and then said that breeders should never sign them.  Everything should be clearly put in writing.  Until you are crystal clear on how the agreement will work (in writing), you should never sign anything.

There are key questions you need to be clear on: what is their definition of domestic semen; what is the value of early release semen; and what is the difference between the retail and wholesale selling price?  Each of these terms can have a huge impact on the revenue you will receive.   For example many of the larger studs sell semen to their member co-operatives or sister organizations very cheaply and that is the rate you get your lease from.  Even though these studs then go and sell that semen for 5 and 6 times as much.  Since you are paid on what the originating stud sells it for and not their member co-operative or sister organization sells it for, you could be losing out on thousands of dollars.

One thing I am surprised about is that more breeders aren’t demanding and more studs aren’t delivering a full accounting of exactly how many units were sold and for what price.  In a sense they are asking you to trust them in blind faith that the numbers they tell you are correct.  Now I am not saying the studs are trying to cheat you, but for everyone involved an accurate accounting for total number of units sold and blend price is necessary to build trust in these partnership arrangements.

It`s also important to make sure that the agreement is a Win-Win for both sides.  You may think you have gotten the best of the stud for the arrangement you get, but if it is not a win for them they just won’t move semen, and that is an extremely key element in any lease.  You see if it costs them too much to sell your bull and they have other bulls that are close and cost way less, naturally they are going to move those other sires.

Also realize that in today`s genomic market, 6 months after a bull is released there is a good chance that the bull will no longer be in the top of the list, so an agreement that worked well for a list topper, may no longer work well for a sire who is in that no man’s land between early release and proven sire status.  Make sure you have arrangements and agreements in place with the stud that keeps semen moving and is still a win-win for both sides.  One arrangement I have seen work well is a % of net royalty for the first year and then a set price per dose after that.  That way you capitalize on the high value, early release semen and then agree to a very manageable set price for the stud after that. This way, they can continue to market and promote the sire.

The Bullvine Bottom Line

The “aw shucks I am glad to be selling a bull to A.I.” days are over.  This is a business.  Big business. And with big business comes contracts.  In order to maximize your revenue, you really need to become adept at contract negotiations.  Only then can you know who is really selling your bull and exactly how much money you are making.

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Milking Daughters

In fact, in addition to the sons a bull has enter AI, it is the number of milking daughters of a bull that determines the contribution he will have on the breed. The Bullvine decided to investigate the female registrations by sire to determine which bulls breeders are actually using.

Population geneticists tell us that about 25% of the improvement in a population comes from the sires that produce the milking daughters. By comparison the contribution from the sires of AI young sires is 43%, the contribution from the dams of AI young sires is 25% and the contribution from the dams of the milking females is 7%. Even though the sires of milking daughters contribution is not the most important factor in an Al breeding population, it is the most important factor that breeders have control of in their herd.

Canada – 2012

The ten sires with the most registered daughters in 2012 in the Canadian Holstein Herdbook accounted for 23% of all female registrations. All ten sires were daughter proven and all listed in Table 1.

Table 1     Sires with the Most Registered Canadian Daughters (2012)

Click on image for enlargement

Every sire has his own merits and limitations. In our analysis the Bullvine decided to consider the Percentile Rank (%RK) each sire has for each of LPI and its three major components – Production, Durability and Health & Fertility. The ranges in and overall averages for %RK for these ten sires are very revealing. Even though these sires are 94%RK for LPI it can be seen that Canadian breeders put more emphasis on Durability (think Conformation) at 95%RK, moderate emphasis on Production at 79%RK and little emphasis on Health & Fertility at 54%RK.

Only one sire is below 94%RK for Durability and only two sires are below 75%RK for Production. However a very limiting factor to genetically advancing Canadian Holsteins is the fact that only four sires, Fever, Dempsey, Manifold and Jordan, are over 75%RK for Health and Fertility.  The fact is that little attention is being paid to Daughter Fertility when breeders use sires. That should concern us all.

What’s Happening in 2013

Holstein USA provides on its website a report called “High Registry Activity by Bull”. The report is updated daily and is for the most recent two week time period. The following is the report for April 22, 2013 (registrations April 08 to April 19).

Table 2             Sires with the Most USA Daughters (April 2013)

Click on image for enlargement

It is worthy of note that Mogul, McCutchen, Gold Chip and Supersire are all genomically evaluated bulls without any daughters included in their indexes. The other six sires are all daughter proven.

The Bullvine does not have the Percentile Rank tables for the USA bulls so the numbers in Table 2 are their actual index numbers. However the results are very similar to the top ten Canadian sires in 2012. TPI, PTAT, UDC and FLC are all relatively high index numbers on average. And the indexes for Net Merit, SCS and Milk are moderate to high. However standing out as being below average is Daughter Pregnancy Rate (DPR). So USA breeders, like their Canadian counterparts, are also not placing emphasis on a breed problem – fertility.

The Numbers Tell the Story

One question we had was “How much are genomic sires being used?”. Table 2 shows four genomic sires in the top ten in the USA. In fact in the top thirty most used American sires in 2013 there are eleven genomic sires. That compares to three in the top thirty in Canada in 2013. Breeders in the USA are making much more use of sires with genomic evaluations than Canadian breeders are.

The proof of the pudding is in the eating. The sires that advance a population are the ones that breeders use not the ones that top the ranking lists.

The Bullvine’s assessment on the sires breeders are currently using is:

• Production – Maintain the current amount of emphasis
• Type / Durability – the emphasis can be diminished
• Health & Fertility – the emphasis needs to be increased

The Bullvine Bottom Line

Given that many breeders tell The Bullvine that they wish to genetically improve health and fertility in their herds, it is time for breeders and AI organizations to become much more discriminating in these areas. Young sires entering AI will need to genomically rank in the top 25% of the population for DPR or DF. Many sires currently getting use in North America do not measure up for health and fertility. The genetic merit of sires selected and used in the coming years needs careful re-consideration.

Indexes are like having a compass. First you have to know where you want to go. Then you have to USE the information or you could still wind up lost.

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First it was LIQUID GOLD that caught everyone’s attention when GenerVations released him and his brothers in a limited offering for $750 and $500 (Read more – $750 Dollar Semen! Are You Crazy?).  That gave all breeders the chance to have equal access to early release semen, instead of playing favorites with preferred herds or contract mattings.  Now it’s GOLDEN PP, Kulp-Dale Golden PP-Red that is getting everyone’s attention.  When his first five units of semen sold for $50,000, it generated heaps of discussion around the industry.

The Dairybullsonline Story

Dairybullsonline.com ad

To get a better understanding of the GOLDEN PP story, it’s best to trace it back to its roots.  In March 2011, Bryan Quanbury and Roy MacGregor started DairyBullsOnline (Read more – They’re Sold on Polled!!) by developing their website, www.dairybullsonline.com and placing the ad at right in the major dairy publications.

You see these two risk takers had spent many years in the dairy industry and they were very confident that polled was more than just the new red (Read more – Is Polled The New Red?).  They were not only confident that the market would come to demand polled genetics, they wanted to be at the front of it (Read more – Polled Genetics: Way of the Future or Passing Fad).  Recent sale results have confirmed that they are achieving their goal   (Read more – An Insider’s Guide to What Sells at the Big Dairy Cattle Auctions).

What these two men saw was a different way to sell and promote bulls.  Leveraging a different distribution model compared to traditional Artificial Insemination companies, Dairybullsonline.com was looking to be more of your amazon.com than your Wal-Mart (Read more – A Wake-Up Call to All A.I. Companies).  As well, they could offer a larger portion of the revenues back to the breeders of the bulls who had been forced to sign very limiting contracts in the past (Read more – Top 10 Questions to ask Before You Sign That A.I. Contract)  Hence  they developed the ad to attract breeders who were looking for a change.

The Golden PP Story

It was this wanting to partner with breeders and to become champions for polled that led them to help in arranging the sale of Kulp-Dale Snow Gold (Sister to Golden PP) from Kulp Genetics to Benner Holsteins, Steinbach Manitoba.  The trust they built up while working with Kulp’s earned them the privilege of sampling and marketing Kulp-Dale Golden PP-Red.

KULP-DALE GOLDEN PP-RED

GOLDEN PP came back with high initial genomic index tests.  With bulls you are only able to see genomic results every proof round compared to genomic indexes for heifers are released monthly.  Both Dairybullsonline and Kulp’s had to wait to see if they would indeed have the #1 Homozygous polled bull in the world.  When Elm-Park Geisha PP-Red topped the World Dairy Classic sale (Read more – World Classic 2012 Highlights) with lower genomic numbers than Kulp-Dale Golden PP Red, they were sure he could be the highest PP bull.

The Power of Social Media and Smart Business Decisions

Golden PP ad from Facebook

Now here is where the story takes an interesting turn.  While we were working on preparing a Facebook page to help promote GOLDEN PP, things started to swell.  First breeders from all over the world started “liking” the page, while it was still being developed.  Then the most unexpected thing in the world happened.  They were offered $50,000 for the first five units of semen.

Actual Facebook Conversation

The offer was made by Jerry Jorgensen of Ri-Val-Re Holsteins.  The offer came with the condition that no other semen could be sold or used outside his herd for 90 days.  This effectively guaranteed that he would have the first progeny on the ground.  Even more importantly, his progeny would most likely have a full proof round on the index lists before others would be on it.

Now $50,000 is a lot of money, “How can he ever make it back?” you ask.  “Especially on five doses?” Take a closer look.

Let’s say he uses those five doses for IVF.  That means he can flush about five different cows 5 different times, or for a total of 25 flushes.  Now let’s say that he averages 10 eggs per flush.  That would mean that they have about 250 eggs.  (Note: On the first round of flushes, Ri-Val-Re made 77 transfers off one unit of semen from nine donors).  They would only need to get about $200 more per egg to break even.  This is very achievable for a herd that already has some of the top gTPI B&W, R&W, and Polled Genetics.

Take it one-step further.

Let’s say they were to implant all these eggs and end up with 120 pregnancies.  If 60 are female, that means they would only need to get $1,000 more at the time of sale.  And that does not even factor in the potential revenue that having the next GOLDEN PP could bring.

When you take a closer look at the offer, it really is a very smart business decision.

The Bullvine Bottom Line

I am sure it seems like some of the prices you see top animals selling for these days are unrealistic and that $750 for a single dose of semen doesn’t make sense.  I agree that for most breeders it doesn’t.  However, if you are in the high-end genetics game, these prices are not only realistic they actually make good business sense and prove that “All that glitters is definitely Golden”