1. Deliver a differentiated proprietary genetic offering
Strategic priorities
We harness the latest technologies and talent to continuously improve the genetics of our own herds and resulting product offering. We protect our unique position by carefully selecting who we sell our genetics and technology to, and on what terms.
What does success look like?
Genetic Gain: creating superior breeding animals for farmers, measured against indices comprising traits that help to drive farmers’ productivity and sustainability.
Porcine genetic improvement index (US$)
Measures the genetic improvement we achieve in our porcine nucleus herds, which ultimately filters down to our customers’ farms.
DEFINITION: The index measures the marginal improvement in customers’ US$ profitability, per commercial pig per year, on a rolling three-year average.
PERFORMANCE: Genus continues to deliver increasing rates of genetic improvement through expanding and maintaining a large nucleus population for high selection intensity, improving technical processes for genomic evaluation, implementing precision data collection from birth to consumer and continuing to add new traits and data streams.
Genomic bull net merit index (NM$)
Measures the genetic quality of our bulls released to market, based on economically relevant traits for farmers.
DEFINITION: The average Net Merit $ (NM$) index score of generally available Holstein commercial bulls launched in the market compared to the average of the 4 largest competitors. This data is presented on a two-year rolling basis, as bulls are typically sold over a two-year period.
PERFORMANCE: Genus continues to improve the quality of its commercially available bulls to maintain a leading genetic position in the dairy industry. This is primarily driven by the high proportion of top-quality bulls sourced from the proprietary breeding programme, De Novo. During the year, the company acquired the remaining non-controlling interest in De Novo, further strengthening its genetic supply chain.
2. Focus on progressive protein producers globally
Strategic priorities
We focus our offering on progressive livestock farmers, who are data driven and results focused. We tailor our products and services to maximise their performance on their farms. We serve different markets in different ways to manage cost and risk effectively.
What does success look like?
Volume Growth: growing volumes, particularly with progressive livestock farmers.
ABS volume growth (%)
Tracks our global unit sales growth in dairy and beef.
DEFINITION: The change in dairy, beef and sexed units of semen and embryos delivered or produced for customers in the year.
PERFORMANCE: Excluding China, global markets were generally stronger with bovine volumes growing 5% to 25.9m units. In addition, strategically important Sexed volumes were up 11%, reflecting good growth in Sexcel and third-party IntelliGen production.
PIC volume growth (%)
Tracks the growth in the number of commercial pigs with PIC genetics globally. Figures exclude China.
DEFINITION: The change in volume of both direct and royalty animal sales, using a standardised MPEs measure of commercial slaughter animals that contain our genetics.
PERFORMANCE: Market conditions for pork producers were generally positive, supported in particular by lower feed costs. Against this backdrop, porcine volumes grew by 9%, to 223.3m MPEs. Strategically important royalty volumes grew by 5% with growth in every trading region.
3. Share in the value delivered
Strategic priorities
We aim to capture an appropriate share of the value we deliver to customers, aligning our interests with theirs. We demonstrate the value of our genetics on farm through validation trials and data, and link our pricing to genetic indices and our customers’ productivity.
What does success look like?
Profitability: generating profit resulting from the performance of our products in customers’ systems, and growing margin as we leverage scale and R&D investment across species.
Operating profit per market pig equivalent (£)
Monitors porcine profitability by unit.
DEFINITION: Net porcine adjusted operating profit globally, expressed per MPE. Results include our share of Agroceres PIC, our Brazilian joint venture and also PRP commercialisation costs that ramped from FY23.
PERFORMANCE: Operating profit per MPE was £0.55, £0.01 lower (£0.03 higher in constant currency). Strong underlying operating growth and leverage was impacted by growth in PRP commercialisation costs and foreign currency headwinds.
Bovine operating profit per unit (£)
Monitors bovine profitability per unit.
DEFINITION: Bovine adjusted operating profit globally, expressed per dose of semen or embryo delivered or produced for customers.
PERFORMANCE: Operating profit per dose was £0.75, £0.19 higher (£0.26 higher in constant currency). The primary driver of performance growth was operational efficiency improvements from Genus ABS’s Value Acceleration Programme (‘VAP’) initiatives.
4. Sustainability at the heart of our business
Strategic priorities
Our strategy is underpinned by our approach to sustainable business and the strength of our people. The Board measures the performance of these key areas using the KPIs opposite.
What does success look like?
Develop Life Cycle Assessments across our proteins, to demonstrate the environmental and welfare benefits of our products
