Feeding the world more sustainably

Drivers

CONSUMPTION OF ANIMAL PROTEIN

Continues to grow as the global population expands and urbanises, and seeks a more varied and nutritious diet. Pork, milk and beef consumption are forecast to grow by 1–2% p.a. in the next decade.

INCREASING COMPETITION FOR RESOURCES

Such as land and water puts pressure on farmers to become more efficient, including through the use of genetically superior animals and new technologies.

GROWING CONSUMER AWARENESS

Is driving demand for high-quality, healthier and more sustainable products, which are produced with fewer drugs . This increases farmers’ demand for genetically superior breeding animals, which are more efficient and resilient. In the future, gene editing and other breakthrough technologies may provide farmers with breeding animals that are fully resistant to some of the most devastating diseases globally.

FARMS ARE BECOMING LARGER AND MORE TECHNIFIED

Progressive farmers typically measure performance in more detail. This means they better understand and can benefit from the efficiency benefits of genetically superior breeding animals and optimised breeding strategies, such as combining the use of sexed dairy and beef semen on dairy herds to maximise profit.

 

Trends

CONSOLIDATION OF ELITE BREEDING HERDS

Elite breeding bulls and pigs are bred from genetically elite breeding herds. The increasing use of costly technology and the scale required to keep pace with industry leaders is driving consolidation of these herds. As genetics consolidate, some breeders are choosing to form strategic alliances with competitors, so they can offer their customers superior genetics.

ADOPTION OF SEXING TECHNOLOGY

Using sexed semen is a more efficient and sustainable use of dairy animal genetics. Adoption of semen sexing technology with elite ABS germplasm is growing fast across dairy herds, as it enables farmers to efficiently produce more productive heifers. The production of female offspring with sexed semen means the rest of the herd can be bred with beef semen, to maximise the meat quality of the resulting calf.

BREAKTHROUGH TECHNOLOGY AND DATA

The animal genetics industry is pursuing innovative solutions to improve productivity and to tackle animal disease and suffering. These include using data and health-focused breeding indices, as well as breakthrough technologies such as gene editing and advanced  reproductive biology techniques. Progressive farmers are also increasingly looking to digital technologies, which provide data and insight to support decision making.

Position

Genus is a world leader in animal genetic improvement. We have a global commercial platform with critical mass. We are also the only listed porcine and bovine genetics company globally, giving us strategic access to finance. Our competitors are largely private companies and farmer-owned cooperatives, many of which are regionally focused.

1 Source: Genus analysis; US Holstein breeders represented in the Top 200 NM$ rankings by birth year; 2020 data based on Top 200 Holsteins active using August 2020 data from the Council on Dairy Cattle Breeding.
2 Source: Government agencies, local independent pork organisations, Genus estimates. Market shares represent the estimated share of pig production in top pig production markets.
3 Source: Government agencies, local bovine genetics and agriculture organisations, Genus estimates. Market shares represent the estimated share of combined dairy and beef volumes in ABS’s Top 29 target markets for dairy and Top 8 target markets for beef.

arrow