Helping to meet the growing demand for animal protein through genetic improvement

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Long-Term Drivers of Animal Genetic Improvement

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Growing consumption of animal protein driven by global population growth and greater appetite for animal protein in growing urban populations.

Increasing competition for resources such as land and water puts pressure on farmers to use superior genetics and new technologies to improve efficiency.

Growing consumer awareness is driving demand for high-quality products, which are produced with fewer drugs.

Farms are becoming larger and more technified. Larger producers typically measure performance in more detail and better understand the benefits of superior genetics.

Forecast Growth in Protein Production

+1% Pork
+2% Milk
+1% Beef

Source: OECD-FAO; represents forecast global production CAGR between 2017–2026.

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Key Trends in the Animal Genetics Industry

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Consolidation of Elite Breeding Herds

The number of breeders consistently producing high-ranking dairy genetics is falling, due to the consolidation of genetically elite breeding herds. Elite porcine breeding herds are also consolidating. This consolidation is driven by the increasing cost and use of technology to keep pace with industry leaders. As genetics consolidate, some breeders are choosing to enter into strategic alliances with competitors, so that they can offer their customers superior genetics.

Source: Genus analysis; US Holstein breeders represented in the Top 200 NM$ rankings by birth year; 2018 data based on Top 200 Holsteins active using April 2018 data from the Council on Dairy Cattle Breeding.

Adoption of Technology

Adoption of semen sexing technology and IVF is growing fast across dairy and beef herds, as they enable more focused selection of breeding animals, to breed a stronger next generation. Ownership or access to such technology is important in helping farmers accelerate genetic progress in their herds.

Breakthrough Technology and Data

The animal genetics industry is pursuing alternative solutions in the fight against animal disease and suffering. These include using data and health-focused breeding indices, and exploring breakthrough technology, including gene editing, which could have a significant impact on farming and animal well-being.

1% growth in conventional semen
25% growth in sexed semen
20% growth in embryos

Growth rates refer to actual volume growth rates for 2018 delivered by ABS. Conventional and sexed volumes relate to global dairy semen volumes. Embryos relate to total global embryo volumes.

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Our Position in the Animal Genetics Industry

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: Governmental agencies, local independent pork organisations, Genus estimates. Market share represents the estimated share of technified/commercial production in top pig production markets.
  2. Source: Governmental agencies, regional bovine genetics and agriculture organisations, Genus estimates. Market share represents the estimated share of combined dairy and beef volumes in ABS’s Top 30 target markets for dairy and Top 8 target markets for beef.
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