Our Strategy in Practice

Despite difficult conditions in the global dairy market, ABS has continued to evolve a broader and increasingly differentiated range of solutions to help dairy and beef customers ‘Profit from Genetic Progress’. During the year, we made the following progress against our strategic objectives, whilst also implementing a number of short‑term, profit-focused initiatives to counter the market headwinds:

Increasing Genetic Control and Product Differentiation

  • Expanded our elite dairy female programme with 20% of our new bulls sourced from it in 2016. In September 2016 we formed De Novo Genetics in partnership with the US’s leading independent Holstein breeder.
  • Strengthened our beef nucleus herd, which is expected to deliver 900 bulls to our PowerLine beef bull programme by 2019.
  • Launched proprietary indices to help customers identify dairy sires with offspring more resistant to diseases after giving birth, resulting in price and volume increases for high health status bulls.
  • Harnessed IVB’s IVF technology to expand our genetic improvement solutions and launched new direct transfer frozen embryos in Brazil combining elite female and male genetics.
  • Supplied IVF services to a major US dairy customer.
  • Prepared to launch our proprietary Genus Sexed Semen technology in key markets.

Targeting Key Markets and Segments

  • Embedded customer segmentation in our dairy business and created a distinct customer experience for different segments.
  • Upgraded our proprietary Genetic Management System (GMS 2.0), enabling advanced customisation and incorporation of genomic data.
  • Established IVB’s operations with new laboratories in the US and Mexico, and expanded operations in Mozambique.
  • Delivered efficiency savings by reducing sales and service staff in Europe and reduced distribution costs.

Sharing in the Value Delivered

  • Implemented a new pricing-to-value strategy in the US and UK, based on an ‘ABS Value Index’.
  • Demonstrated and captured a share of the value of higher fertility genetics with customers in Brazil.
  • Increased prices in Latin America by over 20% to counter the impact of exchange rate devaluations.

Priorities for FY17

  • Drive profit recovery through focus on value and cost initiatives.
  • Accelerate delivery of differentiated genetics produced internally through De Novo partnership.
  • Harness new technologies and roll out our proprietary GSS, to build business with new and existing customers.
  • Continue to grow IVB with large enterprise customers and distribute frozen direct transfer embryos to medium size customers.
  • Focus on the exciting opportunities in beef, by establishing a global team to help us evolve proprietary products, continue developing our technology and enhance differentiation.

 

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