Our Strategy - Helping Customers Thrive

Genus has a robust strategy to meet its corporate goals and capture the very significant growth opportunities in the animal genetics market.


To maintain and enhance our product leadership

We do this by leveraging our genomic selection and broader genome science capabilities to continuously improve our herds, and investing in new technology and tools to strengthen our capabilities.

Achievements in 2015/16


  • Developed PRRSv-resistant pigs and secured exclusive global licence
  • Accelerated rate of genetic improvement

Beef & Dairy

  • Sourced 20% of all new US Holstein bulls from our internal breeding programme
  • Formed a strategic partnership with the world’s leading independent Holstein breeder1
  • Launched proprietary health indices for Holstein and Jersey cattle
  • Secured an exclusive licence for technology to combat BRD


  • Prepared GSS for launch
  • Secured access to CRISPR-Cas9 gene editing technology, through collaboration with Caribou Biosciences

Case Study

Tackling Disease with Breakthrough Technology

Porcine Reproductive and Respiratory Syndrome Virus (‘PRRSv’) is the most significant and harmful disease faced by pig farmers. Millions of pigs and piglets suffer from the virus each year, which causes reproductive failure, reduced growth and premature death. Despite being a challenge for the pork industry for more than a quarter of a century, there is still no cure.

In December 2015, we announced that our long-standing collaboration with the University of Missouri had produced a major breakthrough – the first pigs resistant to this devastating disease. Using gene editing, the University was able to breed pigs that do not produce a protein necessary for PRRSv to spread. Early stage studies showed that these pigs stayed healthy and gained weight normally when exposed to the virus. We are now working to further develop this technology and expect that it will take at least five years to obtain any required regulatory approvals and make PRRSv resistant animals available to farmers.

Our work will be aided by our new strategic collaboration with Caribou Biosciences — our largest technology driven alliance to date. Caribou is a leader in the revolutionary field of CRISPR-Cas9 gene editing, which allows precise and controllable changes to the genome. Genus has a worldwide exclusive licence to use the technology to develop new traits in pigs, cows and potentially other livestock species, with PRRSv being one of our first targets. This collaboration will ensure that Genus remains at the forefront of developing and applying technology to support animal well-being.



To deliver the right offering for the right customers

We do this by targeting meat and milk producers globally who understand the impact of genetics, offering them products, support and technical services tailored to their needs.

Achievements in 2015/16


  • Grew presence with leading pork producers in Europe and Asia
  • Signed new supply chain agreements in China

Beef & Dairy

  • Won our first IVF customers in the US
  • Began selling elite frozen embryos in Brazil
  • Launched a new bull stud in India

Case Studies

Pursuing Growth in the World's Largest Dairy Market

India offers a major opportunity for Genus. With a population of 1.25 billion people, it is the biggest dairy market in the world. However, milk yield and production efficiency are low and local restrictions have hindered genetic improvement, including a ban on importing bulls and limits on importing semen.

In view of these restrictions, we explored other ways of giving farmers access to our much-needed genetics, and identified a way of importing elite North American genetics in the form of embryos, and implanting them in carefully selected animals. We needed a local partner to help with the process and joined forces with the Chitale family, who owned the only private stud in India.

As we grew the range of locally housed bulls, it became clear that we needed a larger production facility. We formed a joint venture with the Chitale family and in early 2016, opened a truly world-class facility, incorporating the very latest practice in areas such as bull handling, production and health and safety. The stud is the leading facility of its type in India and one of the most advanced in the world.

At full capacity, the stud will be able to produce more than 7 million semen straws a year. It also has room for expansion and is compliant with our GSS project, so we are ready to implement this when it comes on stream. Increasing production is being supported by further development of our commercial infrastructure and offer within India. This includes expanding our range of distributors and distribution models and developing a tailored Indian index for genetics, so we can breed for Indian conditions and economics.

Expanding Our IVF Offering

In 2015 we acquired a majority holding in IVB, the world leader in bovine in vitro fertilisation (‘IVF’). While IVF and artificial insemination (‘AI’) both allow farmers to improve their herds’ genetics on the male side, IVF enables them to select elite female genetics as well. This allows our customers to accelerate annual genetic improvement in their herds.

In 2015/16, ABS and IVB have worked together to expand IVB’s geographical footprint and its product offering. IVB has established a new presence in Mexico, which is an exciting market with the largest ‘cow pocket’ in Latin America. Mexico offers tremendous potential to implement IVF technology and to leverage ABS’s strong presence. The new operation includes a laboratory equipped with the very latest technology. IVB has also relocated a complete team from Brazil, to ensure its technicians in Mexico have substantial experience of IVF. This will ensure Mexican producers receive the same high quality as our Brazilian customers.

The laboratory in Mexico can produce either fresh or frozen embryos for dairy producers. IVB’s new Direct Transfer process has simplified the freezing and transferring of embryos, so they can be implanted in one step, similar to AI. Early results show this new methodology is achieving equal or better results than previous freezing techniques, strengthening customers’ confidence in Direct Transfer. IVB and ABS have also begun selling high genetic merit embryos in Brazil and we continue to target the progressive farms segment, which has a high level of technology adoption and the scale to implement it.



To capture an appropriate share of the value we deliver to customers

We do this by demonstrating the value of our genetics and indices through trials and aligning our interests with our customers’, by linking our revenues to their productivity.

Achievements in 2015/16


  • Signed three new royalty agreements with large customers in China
  • Grew proportion of our business under royalty by 2 percentage points

Beef & Dairy

  • Achieved over 7% price increase for high health status bulls, and grew their share of total volumes by 1.7 percentage points
  • Achieved over 20% aggregate price increase in Latin America

Case Studies

Positioning Genus for Further Success in China

offers major long-term opportunities for us. When we first established a presence in China, its differing risk profile led us to operate through owned and joint venture farms. In line with our global strategy, we are now transitioning to contracted production with trusted partners, helping to mitigate our exposure to farming and commodity price risk.

Riverstone became our first multiplier and royalty-based customer in 2014. This year we signed a seven-year agreement with the Yunnan Shennong Agricultural Industry Group, to enable them to establish 50,000 sows for a new production facility. The agreement includes a multiplication farm, with the capacity to produce 30,000 grandparent gilts a year, and the establishment of a sire line nucleus, which will double our capacity to produce high-quality terminal boars in China. Both will initially be stocked with the latest high-health greatgrandparent animals from PIC’s genetic nucleus in the US. In addition, we signed an agreement with Jinluo group, China’s biggest slaughter plant, to supply terminal boars for its 50,000 sow commercial system.

These agreements, and the long-term royalty arrangements involved, give us resilient revenues and enable us to share in the value created by our proprietary genetics.

With this firm foundation in place, we will now be integrating our porcine operations in China and our other Asian markets into the global PIC organisation. This will help us deliver a consistent customer experience worldwide, while maintaining flexibility to address local market needs.

Preventing Post-Calving Disorders Through Advanced Genetics

Cows making the transition from giving birth to becoming productive members of the milking herd can suffer from a number of significant health problems. In fact, three-quarters of disease in dairy cows occurs in their first 30 days in milk and as many as half of high-producing cows are affected. This means dairies can lose up to 10% of the herd each year due to transition cow problems, resulting in substantial time, money and productivity costs.

In August 2015, we launched our TransitionRight™ genetics, giving farmers the first genetic solution to multiple post-calving disorders. Some of the key problems TransitionRight™ addresses are mastitis, metritis and ketosis, which typically cost US farmers between US$200 and US$350 per case. By choosing a 5-star TransitionRight™ sire, farmers can save an average of US$100 per lactation compared with a 3-star sire and US$200 compared with a 1-star sire. This saving reflects lower treatment costs, labour and lost profits, as well as avoiding additional housing, care, monitoring and feeding expense. At the same time, reducing the incidence of post-calving disorders is beneficial for animal welfare.

Customers worldwide have responded positively to TransitionRight™’s introduction and have quickly incorporated TransitionRight™ into their genetic selection criteria. As a result, we have seen growing demand for high-ranking 4-star or 5-star TransitionRight™ units.



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