UPDATE
TH E AUSTRALIAN
WAGYU
Vol. 68 The Wagyu industry’s premier trade magazine produced by the Australian Wagyu Association www.wagyu.org.au April 2018
WHY WAGYU HAS STEAK EATERS
R a vi n g
INSIDE ....
| BIG SWITCH TO WAGYU | NEW GENOMICS ERA | NSW PUSHES WAGYU EXPANSION $600 STEAK FOODIE LEGEND INVESTIGATES | WAGYU BREEDER FINALIST FARMER OF THE YEAR WAGYU INVESTMENTS EXPANDS | MEMBER RIGHTS TO WAGYU DNA | AWA PRODUCTION FORECAST
BEST FILLET
STEAK IN THE
WORLD
No. 1
STEAK IN THE
WORLD
No. 1
STEAK IN THE
WORLD
our results for themselves Geoff Willett phone 07 4661 9600 mobile 0408 716 960 fax 07 4661 9601 email geoff@maydan.com.au
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THE AUSTRALIAN WAGYU UPDATE
MAYDAN
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CONTENTS 6
Why Wagyu has steak eaters raving
7
Big switch to Wagyu
8
Key projects announced for 2018
10
Gearing up for the genomics era
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Wagyu Single Step BREEDPLAN implementation & FAQs
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22 Wagyu breeder farmer of year finalist 25 $600 steak - foodie legend investigates 27
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Wagyu investment expands
28 AWA clarifies member rights to Wagyu DNA 33 Japan’s magnificent 2017 Zenkyo Wagyu show, in pictures and words 37
NSW pushes Wagyu expansion
38 Wagyu cattle numbers rising 40 Wagyu expansion continues 43 Grading-up pathway now available 46 Moving towards SNP parentage verification
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50 Wagyu burger top offering at Macca's 52 2017 Australian Wagyu Association Survey production forecasts THE
AWA CONFERENCE & TOUR
2-6 MAY 2018
Publisher THE AUSTRALIAN WAGYU ASSOCIATION (AWA) office@wagyu.org.au 02 6773 3355 Consulting Editor GEOFF PHILLIPS geoffphi@ozemail.com.au 0411 413 599 Contributing Writers PETER GILMOUR, Dr. MATT McDONAGH, JON CONDON, LUCY KINBACHER, MARK PHELPS, SHAN GOODWIN AND CATRIONA MILLEN
ON THE COVER Entry from the highly regarded 2018 Wagyu Branded Beef Competition. The competition seeks to promote excellence in Wagyu beef production over 4 categories. The Australian Wagyu Update magazine is printed by Litho Art on paper stock derived from sustainable forests managed to ensure their renewability and preserve natural eco-systems for generations to come. All content is subject to copyright and may not be reproduced in any form without the written permission from the publisher. Opinions expressed in The Australian Wagyu Update magazine are not necessarily those of the publishers. Acceptance of an advertisement does not imply endorsement of any product or service by the magazine or the association, nor support any claims by the advertisers. Every effort is made to ensure information contained in this magazine is correct at the time of publishing.
Art Direction HEATHER FRAZIER heather@squishcreative.com 0432 949 764 GENERAL ENQUIRIES AWA Chief Executive Officer Dr. MATT McDONAGH office@wagyu.org.au
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MACKAY
02 6773 3990
Wagyu Update advertising enquiries HEATHER FRAZIER heather@squishcreative.com 0432 949 764
CONNECT WITH US
www.wagyu.org.au /AustWagyuAssoc /AustralianWagyuAssociation /Wagyu
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THE AUSTRALIAN WAGYU UPDATE
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THE AUSTRALIAN WAGYU UPDATE
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WHY WAGYU HAS STEAK EATERS RAVING When John Kilroy introduced Wagyu to the menu in his famed Cha Cha Char restaurant in Brisbane in the mid 1990s, he struggled to sell the highly marbled steaks.
“For the first six months we had it on the menu we had to virtually give it away. No one was interested”, Mr Kilroy said “It was new and was costing me hundreds of dollars a kilo wholesale. Of course we all thought it would eventually take off but at that time people just weren't willing to even try it”. The difference now is people have come to know the incredible dining experience that Wagyu delivers. Mr Kilroy said part of the problem was there had been some disappointing experiences with cheap steak that was being sold as Wagyu at some of the pubs around town.
Mark Phelps Queensland Country Life
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THE AUSTRALIAN WAGYU UPDATE
Also it just looked so different to the steaks people were used to eating, Mr Kilroy said. “The level of marbling that Wagyu offered and the way it performed in the mouth wasn't recognised for what it added to the eating experience”. Fast forward some 25 years to 2018 and the Five Star Brisbane riverfront restaurant now boasts a range of
meals featuring Wagyu, including an incredibly popular $110 steak. “The difference now is people have come to know the incredible dining experience that Wagyu delivers,” he said “This is meat that is filled with flavour, is juicy and because of the marbling and the low melting temperature it literally melts in your mouth”. “Combine that with an outstanding wine like Hill of Grace and it is a real experience that people recognise as a fine dining event”. Mr Kilroy said in his experience, people who were looking for a five-star experience seldom worried about the price. “What they demand is quality, service and a location that matches the prices we are asking”, he said “Being in the CBD we have a lot of business people through our doors. If someone is celebrating a major success or looking to secure a big new contract, they absolutely want the best”. Cha Cha Char production chef Urs Braumgartner says Wagyu is an impressive meat to work with, but
BIG SWITCH TO WAGYU When beef producers Noel and Jo-Anne Chiconi moved their 2,000 head of grey Brahman cows with them from North Queensland to Mungallala, 600kms west of Brisbane in 2003, they considered themselves open range cattle breeders running a simple, yet viable, operation. Now, they are entering their third year as ‘Wagyu breeders’ with a focus on genetic traits. The Chiconi family currently run 6,500 head on their 34,000 hectare property comprising fullblood and purebred Wagyu, F1 Wagyu plus commercial black Angus. Their commercial cattle are turned-off as grass fed bullocks dressing 340kg, while the F1 and Wagyu herd are sold at 300kg live weight feeders.
“It is always about getting the most out of the meat to create the best experience possible”, he said. “Our aim is to always get that right and keeping diners coming back”. Lucy Kinbacher Queensland Country Life
LEFT John Kilroy shares his insights on ways to utilise different Wagyu cuts at the 2016 #Wagyu Revolution Conference.
They have recently finished their first artificial insemination program with 54 heifers along with two embryo flushes of six donor cows, as they begin shifting to a registered female Wagyu breeding program. >>> page 15
Image courtesy: Lucy Kinbacher, QLD Country Life
did require careful handling
Noel and Jo-Anne Chiconi
THE AUSTRALIAN WAGYU UPDATE
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president
PETER GILMOUR
KEY PROJECTS ANNOUNCED FOR 2018 Welcome to the Australian Wagyu Association’s May 2018 Wagyu Update. The “Wagyu Edge Conference” in Mackay and “Beef Week” in Rockhampton are two highlights events of the year and we hope that all attending members extract value, direction and are able to create further direct opportunity for their businesses. Many members are experiencing a difficult season and we sincerely wish you well for better days ahead. On behalf of the board of the AWA we would like to sincerely apologise to members for the extraordinary delay some have experienced in being able to DNA verify or genotype animals for parent verification. We know this has been frustrating as the turn around service up to the commenced delivery of SNP had been within a satisfactory time frame. The reasons for the delay are complex and it has been difficult to create a fast remedial action by the board to support the CEO and staff to implement an acceptable turn around time. However we are seeing some improvement and continue to monitor the situation closely. The CEO will explain further the actions being taken in this Wagyu Update and at the conference. I would encourage members to carefully consider how they are going to convert their herd to SNP genotypes. Both parents need to have a SNP profile for the progeny to get a SNP only parent verification. Imagine a ‘P’ drop herd of say 50 breeders with a mix of natural matings, AI and ET 8
THE AUSTRALIAN WAGYU UPDATE
calves. Please make sure you are able to get a SNP profile off both parents, otherwise results will return with ‘unkown’ parentage and you may need to MiP the calf. We are seeing instances where bulls have been sold or AI sires are dead or ET calves have a MiP only parents and there is no DNA (hair or TSU) readily available. However the SNP profile will not be necessarily wasted on the calf as you will create a new SNP parentage profile as it comes to breeding age. The challenge is that the conversion to SNP takes a lot of pre-planning of your time, MSO time and laboratory time to resolve satisfactorily. Notwithstanding the slow down in the MiP and SNP parent verification the exciting new development is the advent of Single Step Wagyu BREEDPLAN. In developing the Single Step Estimated Breeding Values (EBVs), the AWA has worked collaboratively with staff at the Animal Genetics & Breeding Unit (AGBU) and the Agricultural Business Research Institute, with funding support from Meat and Livestock Australia, to implement a new approach for incorporating genomic (50K SNP) information into a Wagyuspecific EBV calculation. These changes have been applied to the April 2018 Wagyu GROUP BREEDPLAN analysis and will now apply to subsequent monthly analyses. The changes are a result of significant improvements in the BREEDPLAN software used to calculate EBVs. The new Single Step Wagyu BREEDPLAN model is now based solely on Wagyu data and Wagyu EBVs are directly derived from Wagyu performance data. This means
that Single Step Wagyu BREEDPLAN is a world-first Wagyu specific genomic and pedigree analysis platform. You will experience significantly higher accuracy on newly registered progeny with a (50k) SNP profile. This new genetic analysis combines pedigree, performance and genomic (DNA) information together in a complete multitrait BREEDPLAN analysis of birth, growth, fertility, carcase performance and potential future feed intake traits. For calendar year 2018 we are developing further the following key projects with the CEO and staff and board sub committees for the benefit of members and the Wagyu industry: »» Review of ‘word intent’ in the Constitution (2017) – held over for 2018 AGM »» Review of the AWA Strategic Plan 2016-2020 »» Promote the Premium Wagyu Sale and continue the Elite Wagyu Sale »» “Wagyu Edge” National Wagyu Conference in Mackay, Qld and CQ Tour to Rockhampton Beef Week. »» Promote the Sire Progeny Test Program including NFI testing »» Implementation of the new MIJ Digital camera for carcase analysis »» Develop Single Step Wagyu Breedplan utilising genomic testing »» Sponsoring the Brisbane RNA (EKKA) Paddock to Palate Wagyu Challenge (breeder competition) »» Develop an AWA Honour Roll of significant acheivements
We welcomed new board member Pete Cabassi to the board in January as an elected member following the AGM. Pete has been through the director induction, briefing of board matters and has contributed along with the entire board in our various sub committee and board meetings. A small group of members participated in the NSW DPI: Australian Wagyu Export Capability Program to Shanghai, China and Taipei, Taiwan in March. It was an excellent tour and the underlying messages were the demand for Australian Wagyu product remains high, consistency and quality are paramount for premium and ultra premium markets and personal relationships are important to build a loyal brand following. Wishing you all an outstanding 2018 season. Peter Gilmour President Australian Wagyu Association
The Wagyu Sire Progeny Test Program helps identify promising sires for feed efficiency and carcase quality, delivering the data directly into Wagyu BREEDPLAN analysis.
THE AUSTRALIAN WAGYU UPDATE
9
ceo update
Dr. MATTHEW McDONAGH
GEARING UP FOR THE GENOMICS ERA Dear members, The AWA Board met recently on the 15th of February 2018. At this meeting, 31 new Full and Associate membership applications were approved by the Board. These included a high proportion of new international members. The meeting addressed a range of issues including: »» The need for additional Member Service Officer staff resources: which are being recruited for now »» The approval of a Memorandum of Understanding to work with the Wagyu Society of South Africa »» Changes to the AWA DNA testing – Perpetual Right of Access Agreement, Bylaws and Members Code of Conduct to highlight member ownership of samples and results and requirement for AWA to access these results for Parentage Verification and use in Wagyu BREEDPLAN »» Implementation of a new AWA Corporate logo »» Implementation of a new AWA Member logo »» Addition of a member Advertising Code of Conduct to the AWA Bylaws »» Changes to 24 year-old animal idents on the AWA database using the “+” symbol and year number to all 24+ year-old “P” year letter animals to be easily distinguished from 2018 “P” letter animals »» The 2018 AWA Conference – “The Wagyu Edge” – program was finalised »» Progress with development of Wagyu Single-Step BREEDPLAN was reviewed with new statistical models to be now generated for evaluation
WAGYU SINGLE-STEP BREEDPLAN IS NOW IMPLEMENTED The AWA Genetic Improvement Committee and Corporate Affairs Committees along with the Full AWA Board met in March and April 2018 to fully review and consider implementation of Single Step Wagyu BREEDPLAN. The Board has endorsed implementation of Single Step Wagyu BREEDPLAN which was run on the 10th of April 2018 for the first time.
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THE AUSTRALIAN WAGYU UPDATE
Single Step Wagyu BREEDPLAN will now run as the monthly AWA BREEDPLAN run utilising refined analysis and software improvements drawing solely on Wagyu performance data to deliver the world’s first public Wagyu-specific genomic and pedigree analysis platform. Further information on Single Step Wagyu BREEDPLAN is provided in a later article in the Wagyu Update edition.
DNA TESTING UPDATE In September 2017, the University of Queensland DNA testing laboratory transitioned to become Geneseek Australasia, and is now Neogen Australasia. With this transition, changes to DNA testing processes, new sample and data systems have been implemented at Neogen Australasia and at the AWA. Since September 2017, we have seen record numbers of DNA tests requests come through the office. We are currently processing more than 2,000 50K SNP genomic profiles a month, which is approximately 4-fold our previous monthly throughput. With the increase in DNA test requests, we are working to automate the process as much as possible. This requires additional checks to be made before DNA test request submission so that errors in testing and reporting are minimised. We are endeavouring to turnaround DNA test request checks at the office within 1 week prior to submitting these to the lab. In many instances, we require additional information from members to allow us to complete the DNA test request submission. If you do submit a DNA test request to us, please keep an eye out for any requests for additional information within the following week so that we can submit your DNA test request to the laboratory as quickly as possible. We are currently receiving DNA test results back from the laboratory within 8 weeks in most cases. The AWA staff are working together with Neogen Australasia to improve sampleDNA result turnaround times to AWA members and we appreciate your patience at the moment. Working with Neogen Australasia, we have implemented the following DNA test request and sample
submission process to assist in reducing delays in testing:
SNP REQUIREMENTS FOR PARENT VERIFICATION VS. PARENT DISCOVERY.
Please note that we are looking to review your DNA test request and clarify any changes prior to you submitting your samples to the lab. Making this change to the current process will minimise the number of hold-ups in testing. This will expedite results coming back to members:
As DNA technologies develop and improve, it is important that the AWA uses the most accurate and cost-effective technology available for its members to undertake Parent Verification.
THE NEW DNA TEST REQUEST AND SAMPLE SUBMISSION PROCEDURE IS AS FOLLOWS: 1. Collect samples 2. Download AWA DNA Test Request
www.wagyu.org.au
MEMBERSHIP & FORMS > FORMS, GUIDES AND USEFUL TOOLS
3. This form is updated frequently. Please ensure you download the most recent version which was last updated 1st March 2018. 4. Submit to
dna@wagyu.org.au
5. Your test request will be checked over to ensure that all information that is required is there and also any suggestions for changes to the testing request (including where we already have DNA results) will be sent back to the member for approval if required. 6. If all information is correct as required by the AWA and the testing lab, this will be submitted to the lab with the member cc’d in. 7. Then send your samples to the lab. Their address can be found at the bottom on the Instructions tab of the DNA Test Request Form (bottom left, green tab). 8. Your samples will begin processing once received at the lab. The above steps are consistent with what members are currently doing, we just ask now that you do these in a different order. Please do not send samples to the lab until your DNA test request form has been reviewed and you have approved any changes. This will result in faster turnaround times for all.
The AWA is unique among large Australian Cattle Breed Societies in that it maintains a ‘closed’ fullblood Herdbook. That is, all the animals within the fullblood Herdbook trace all of their genetics back to the Foundation animals that came from Japan. A core function of the AWA is the maintenance of the ever-growing Australian Wagyu Herdbook using the highest standards of DNA technology available. SNP technology is the leading edge of DNA technology for genotyping, including genomic analysis and Parent Verification. The AWA must, therefore, enable its members to use SNP technology for Parent Verification. Parent Verification is the process whereby the nominated parents of progeny are verified using DNA technology. To enable SNP Parent Verification, the AWA requires that members conduct testing using a minimum of 500 SNP as available through the Neogen Australasia Seek-Sire product. Parent Discovery is the process whereby the parents of progeny are not known and need to be ‘discovered’ from a larger set of sires and dams. To enable SNP Parent Discovery, the AWA requires that members conduct testing using the Neogen Australasia GGP 50K product. To complete Parent Discovery, the AWA uses the full 50K genotype information to accurately determine parentage. As the AWA is the legal entity that guarantees the Herdbook, it is the AWA’s responsibility to verify SNP parentage. For Parent Verification workflows, the AWA requires submission of the 500 SNP test result prior to registration. For Parent Discovery workflows, the AWA requires submission of the 50K SNP test result prior to registration. Once parentage is confirmed by the AWA, registration is able to be completed by members.
It is important to note that Parent Verification using MiP’s is still accepted by the AWA using the 21-marker panel.
PERPETUAL RIGHT OF ACCESS AGREEMENT At the 2017 AWA Annual General Meeting, the members present raised issues regarding Sample, DNA and intellectual property (IP) ownership. As a generalisation under IP law, the entity that creates knowledge (IP), owns the knowledge. When we consider DNA testing, a laboratory undertaking the testing, creates new knowledge by genotyping AWA member DNA samples. Through our investigation of prior DNA testing Service Agreements with laboratories, we have identified that the ownership of IP generated by the testing laboratory is passed back to the AWA. In response to member concerns raised at the 2017 AGM, the AWA Board has provided for transfer of sample, DNA and IP (genotypes) ownership back to the member through changes to AWA bylaws. These changes cover all current and prior agreements in which previously AWA was seen as the legal owner of samples, DNA and IP.
www.wagyu.org.au ABOUT US > BY LAWS
In making these changes, the AWA Board has ensured that Sample and DNA testing result ownership remains with the member. The Board has revised the legal agreement within the AWA DNA test-request form for memberowned livestock data and samples. Please see the “Terms and Agreement” tab on the AWA “DNA test request form” on the website in the forms guides and useful tools section.
www.wagyu.org.au
MEMBERSHIP & FORMS > FORMS, GUIDES AND USEFUL TOOLS
The new Perpetual Right of Access Agreement ensures that the AWA member owns the sample, DNA and genotype data, but the AWA member allows the AWA access to these resources so that it can >>> page 12 THE AUSTRALIAN WAGYU UPDATE
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<<< from page 11 undertake its core functions. These are: »» Maintenance of the AWA Herdbook, and »» Undertaking Wagyu BREEDPLAN analyses The AWA understands that tissue and hair samples may be exhausted by members through their own testing such that continued sample availability may not be possible. The AWA Perpetual Right of Access Agreement relates specifically to the information that our members choose to submit for their purposes. The AWA makes no claim on ownership of your information, but the AWA must be able to do two things: 1. Be able to verify parentage for registered animals using the highest standard of accepted technology 2. Be able to keep a record of animals and associated DNA data that go into Wagyu BREEDPLAN so that pulling animals out doesn’t have a ‘ripple effect’ on the rest of the Herdbook. A core function of the AWA is the development of Wagyu cattle breeding tools on behalf of all members. The value of the Association is the increased power gained in using data (genotypes and performance records) across all members to produce a combined analysis (Wagyu BREEDPLAN) that is far more powerful than single herd observations. The AWA Perpetual Right of Access Agreement allows the AWA to share DNA results for research and commercialisation purposes. Through our research partners, the AWA commercialises Wagyu BREEDPLAN to our members. But a separate research agency (Animal Genetics and Breeding Unit) conducts the research to determine the best statistical model to produce Wagyu EBVs. Hence, we need to share members data (performance records and genotypes) under strict terms with our research partner to improve Wagyu BREEDPLAN. We do this every time we have enough data to justify re-analysis to
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THE AUSTRALIAN WAGYU UPDATE
improve the Wagyu BREEDPLAN model. The AWA then commercialises the outcome through publishing Wagyu BREEDPLAN EBVs. Any other use of member animal genotype data held by AWA requires a written proposal to be formally approved by the AWA Board, and notified to members prior to any further action.
AWA MEMBER LOGO The AWA has developed a member logo so that Full members of the AWA are able to represent their association with the AWA through their own communications and representations.
NEW MARKETING AND COMMUNICATIONS MANAGER: DEBORAH ANDRICH. Following a broad search, we are very pleased to announce that Deborah Andrich is the new AWA Marketing and Communications Manager. Deborah started with the AWA in April 2018. Deb has been the Managing Editor of the Australian Meat News magazine and has excellent skills in translating complex technical issues into language that can be understood by the non-research community. Deb has a strong Marketing and Public Relations history and will take over leadership and delivery of the AWA’s corporate messaging and member communications. Deb will be attending the AWA 2018 Wagyu Edge conference in Mackay in May 2018. Please do introduce yourself to Deb and welcome her to the AWA team.
STAFF UPDATE - MEMBER SERVICES OFFICER NEW RECRUITMENT Due to the increase in volume of DNA test requests and animal registrations, we have recruited a third Members Services Officer to our team. Our member services team currently consists of Caroline Triebe and Steph Grills who are supervised by Carel Teseling, the AWA Technical Services manager. Our new Member Services Officer Ally van Duijnhoven, brings our member services team to 4 staff. This will allow the office staff to more promptly address your enquiries and better manage your DNA test request and registration processes.
AWA members are permitted to use the AWA member logo in-full and without fragmentation in promotion of their business and in signage for corporate use such as in letter heads, signage, business cards or website. In using the AWA member logo, members agree to all aspects of the AWA Advertisers Code of Conduct.
www.wagyu.org.au ABOUT AWA > BY LAWS
In using the AWA member logo, members agree to not using the AWA member logo in promotion of product including sale of livestock, genetic material, meat, meat by-products, meals or edible products and are solely responsible for all representations made. Logo templates will be distributed to members shortly.
2018 CONFERENCE – THE WAGYU EDGE Planning for the AWA 2018 Wagyu Conference – The Wagyu Edge, is complete and we look forward to meeting with approximately 500 attendees at the Mackay on the 2nd to the 4th of May 2018. We have an exceptional speaking and social program in place. Working closely with organisers at
Mackay Regional Council and the Mackay Entertainment and Convention Centre, the local community is looking to immerse itself in all things Wagyu, holding a “Wagyu Week” in which local business and the community will be engaged with us around the conference. This will help to create a more involved community feel at the Wagyu Edge conference an make for a more meaningful engagement with the local community.
2018 #WagyuEdge AWA conference and tour will be held in Mackay QLD.
BEEF 2018 – AUSTRALIAN WAGYU ASSOCIATION STAND Following the Wagyu Edge Conference, we
to prominent Wagyu industry figures. The tour will finish in Rockhampton on Sunday the 6th of May to enable delegates to attend the 2018 Beef Australia event following the conference tour. The AWA will have a presence at Beef 2018 through its stand at the Durack Pavilion. Information on the Wagyu Industry, the AWA and a chilled display of Wagyu Beef will be provided to visitors. Presentations to visitors will be provided on topics such as considerations for F1 breeding. I look forward to seeing many of you at the 2018 Wagyu Edge Conference and at Beef 2018.
are holding a post-conference tour South from Mackay through a part of Central Queensland which has high levels of Wagyu production including properties belonging
Dr. Matt McDonagh Chief Executive Officer Australian Wagyu Association
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THE AUSTRALIAN WAGYU UPDATE
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Image courtesy: Lucy Kinbacher, QLD Country Life
Big switch to Wagyu
<<< from page 7 Having traveled to Japan in September last year with the Australian Wagyu Association tour, Noel and Jo-Anne along with their son Gary and wife Jessie, now know the sort of beast they want to breed and spend a lot of time researching animal traits and breeding values. Jessie Chiconi said they aimed to breed a high growth and marbling beast in the top one per cent of Wagyu traits. But she said it was the eating experience they were really striving to deliver. “There are a few calves in the AI program, if they are successful, they will be +1.1 for marbling and be high growth as well,” she said. “At the end of the day a lot of people breed for type, these cattle are not about type. There are some really nice Wagyu cattle getting around, but that’s not what the game is about. “It’s all about the meat and creating that meat without knowledge of what it is going to be before it’s slaughtered. It’s
Image courtesy: Lucy Kinbacher, QLD Country Life
The top price he saw at the meat market was $28,000 Australian for a carcase.
November having previously sold F1 live export cattle to Japan.
“The people who can afford to have a good eating experience will ensure there is no worry selling the product and we won't be able to produce enough in Australia”
Noel Chiconi said they took away many valuable experiences
Mr Chiconi said.
including a visit to meat market in Tokyo where carcasses
“I never expected to be a Wagyu breeder”.
Above
“While premium Wagyu cuts are expensive per kilogram, the small quantity needed to satisfy your appetite makes it worthwhile,” he said.
The Chiconi Grazing Team and Chiconi Wagyu influenced weaners.
a big process and a lot of thinking goes in towards the steak.” The family will sell their first fullblood and purebred turnoff by
were sold individually. “We saw various carcasses fullblood and F1s (WagyuXHolstein) up to 800kgs dressed”, he said.
THE AUSTRALIAN WAGYU UPDATE
15
WAGYU SINGLE STEP BREEDPLAN IMPLEMENTATION Australian Wagyu producers will be armed with genomic-based data enabling more robust selection decisions with faster gains and higher accuracy under a bold shift to a new own-breed genetic analysis model.
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THE AUSTRALIAN WAGYU UPDATE
Wagyu BREEDPLAN was published in early April utilising refined analysis and software improvements drawing solely on Wagyu performance data to deliver the worldâ&#x20AC;&#x2122;s first public Wagyu-specific genomic and pedigree analysis platform. Single Step Estimated Breeding Values (EBVs) mean Australian and International Wagyu are now being benchmarked against the best of their own breed under even more stringent assessment criteria and weightings,â&#x20AC;? AWA CEO, Dr Matt McDonagh explains. In developing the Single Step EBVs, the AWA has worked corroboratively with staff at the Animal Genetics & Breeding Unit (AGBU) and the Agricultural Business Research Institute,
Single Step BREEDPLAN provides significant improvements in EBVs that more closely reflect genetic relationships in Wagyu data will be evident ...
with funding support from Meat and Livestock Australia, to implement a new approach for incorporating genomic (50K SNP) information into a Wagyu-specific EBV calculation. Significant improvements in EBVs that more closely reflect genetic relationships in Wagyu data will be evident. As an example, Dr McDonagh reports that for â&#x20AC;&#x2DC;high accuracyâ&#x20AC;&#x2122; sires with a previous EBV accuracy of more than 75%, the EBV for marble score has decreased in range by approximately 1 EBV marble score unit. The previous top marble score sire had an ms EBV value of + 3.4. This is now + 2.6, but the same sire remains industry leader for marble score. The decrease in value range for marble score is primarily due to the addition of genomic analysis within Single Step Wagyu BREEDPLAN which has detected a higher degree of relatedness between popular sires than was previously estimated by pedigree within standard Wagyu BREEDPLAN. The impact of the reduced range of marble score EBV is a $269 reduction in the range in the related terminal carcase index for
high accuracy sires . The sire with the previous top Terminal Index value of $792 remains the top ranking sire, with a new Index value of $587. The sire with the previous lowest Index value of -$338 is now -$274 in the Terminal Carcass Index. The terminal carcase index has been well adopted by industry, but is not intended for use in breeding replacement livestock. With implementation of Single Step Wagyu BREEDPLAN, the AWA will now introduce a parallel fullblood self-replacing herd index in coming months. This will assist in selection for breeding stock and accelerate breed development in a variety of related traits. For high accuracy sires, the range in EBV for carcase weight has increased in range by 35kgs. Previously, the highest carcase weight EBV among this group of sires was + 58.1 kg: the highest cwt EBV in this group of sires is now 75kg. This increase in EBV range is largely due to the improved estimate of the heritability of carcase weight enabled by the substantially expanded Wagyu-only dataset. The genetic contribution to carcase weight is now
recognized as significantly higher than previously estimated. These changes mean that within Single Step Wagyu BREEDPLAN, the carcase weight EBV now has a relatively larger influence on terminal carcase index, with the marble score EBV having a lesser influence. These changes have been applied to the April 2018 Wagyu GROUP BREEDPLAN analysis and will now apply to subsequent monthly analyses. The new Single Step Wagyu BREEDPLAN model is now based solely on Wagyu data and Wagyu EBVs are directly derived from Wagyu performance data. This means that Single Step Wagyu BREEDPLAN is a world-first Wagyu specific genomic and pedigree analysis platform.
THE AUSTRALIAN WAGYU UPDATE
17
- EXCELLENCE IN BREEEDING LFDFY0004 Ideal for lifting marbling in F1 and Full Blood production Outstanding cow family Very fine coated calves Quiet progeny Great bull for heifers
DING
TAN OUTS
.0 LE +2 MARB 79 FTI $3 GL
BW
200
400
600
EBV
-1.2
-1.4
-3
-2
-5
Acc
75%
93%
91%
87%
88%
MCW
MILK
SS
CWT
EMA
RIB
RUMP
-6
-3
77%
64%
RBY
MS
-0.8
-9
+3.7
-0.0
-0.0
+0.7 +2.0 +0.59
66%
84%
65%
75%
75%
67%
84%
LONGFORD 004
WKSFMO164 WORLD K’S MICHIFUKU
WKSFMO 139 WORLD K’s HARUKI-2
IMUFP0102 KANADAGENE 102D
LFDFT0480 LONGFORD MUTSU
72%
JUNE 2017
IMUFAJ2810 KITATERUYASUDOI ETJ003
SEMEN FOR SALE BOTH SIRES
MF
1-10 DOSES 11-50 DOSES 51+ DOSES
$80 +GST $75 +GST $65 +GST
WKSFL0976 WORLD K’s SUZUTANI 976
WESFZ0278 EXPORT SEMEN AVAILABLE
Very high carcass weights High retail beef yield AA for the best fat Free of all genetic disorders Extremely quiet progeny TRAIT
Great milking daughters
ER
LEAD
5 TH +4 GROW
+8 MILK .1 2 RBY +
200
400
600
MCW
MILK
SS
CWT
EMA
RIB
RUMP
RBY
EBV
+1.2 +4.3
GL
BW
+22
+36
+45
+40
+8
+2.2
+29
+1.6
-2.6
-4.0
+2.1
-0.2 +0.06
Acc
80%
96%
96%
96%
94%
95%
88%
92%
85%
89%
90%
83%
77%
96%
WESTHOLME HIRASHIGETAYASU Z278
MS
b.robertsthomson@bigpond.com
THE AUSTRALIAN WAGYU UPDATE
71%
SIRE - IMJFA12351 HIRASHIGETAYASU ETJ001 GRAND SIRE IMJFAJ2810 KITATERUTASUDOI ETJ003 GGS IMJFA2703 ITOMORITAKA ETJ002
18
MF
|
Barbara Roberts-Thomson
|
www.academyredwagyu.com
Armidale NSW 2350
|
02 6772 1856
WAGYU SINGLE STEP
FREQUENTLY ASKED QUESTIONS
the marbling breed
DEFINITIONS BREEDPLAN The Australian genetic evaluation system for beef cattle, including Wagyu. Using Best Linear Unbiased Prediction (BLUP) technology, BREEDPLAN produces Estimated Breeding Values (EBVs) for cattle for a range of important production traits.
AWA Single Step Wagyu BREEDPLAN transition and impact on Terminal Carcase Index.
Estimated Breeding Values (EBV’s) EBV’s are the estimates of an animal's breeding value, its genetic merit, produced from BREEDPLAN. Half of an animals EBV will be passed on to its progeny. Genetic evaluation The analysis of pedigree, performance and (now) genomic information to estimate the value of animals’ genes. Is done through BREEDPLAN in all major beef breeds in Australia. The estimates of genetic merit are known as Estimated Breeding Values (EBVs).
Pedigree The record of descent of an animal showing its lineage or ancestry Singe Step The combined use of genomic information with pedigree and measured performance data the genetic evaluation.
BREEDPLAN is the Australian genetic evaluation system for beef cattle. Like all sound genetic evaluation systems, it requires knowledge of the genetic architecture of traits – their heritabilities and the genetic relationships or correlations amongst them, and knowledge of the impact of non-genetic factors such as age, age of dam, and contemporary or management group. These genetic parameters are derived from analysis of large datasets – for Wagyu BREEDPLAN, or Wagyu data.
Q 4. What genomic information is used in
Q 2. When was the Wagyu BREEDPLAN
Genomics The use of DNA markers at thousands of points across the whole genome (DNA) of an animal to assess the genetic makeup of an individual and its relationship to other animals in the population. Heritability The proportion of observed variation in a trait that is due to genetics. Also, the proportion of observed superiority of parents that is passed on to their progeny.
production traits and reported these as EBVs. Research conducted by scientists at the Animal Genetics and Breeding Unit (AGBU), with funding support from Meat and Livestock Australia (MLA) has enabled the combination of these three pieces of information into one genetic analysis in a process called Single Step Wagyu BREEDPLAN.
Q 1. What is BREEDPLAN?
model last revised? In 2014/2015, the Animal Genetics and Breeding Unit (AGBU) at the University of New England estimated the Wagyu BREEDPLAN model, managed by Agricultural Business Research Insitute (ABRI) using generic Bos Taurus genetic parameters derived from Beef CRC research and fullblood and purebred Wagyu performance records provided by AWA members. This genetic evaluation has been used by AWA for Wagyu BREEDPLAN EBVs since that time. This generic model had a a standard adjustment for DOA at slaughter over all breeds of 750 days, as noted in the 2015 AWA Breeding Guide. The DOA adjustment for Wagyu is now 990 days.
Q 3. What is Single Step Wagyu
BREEDPLAN? There are three important sources of information available for determining the genetic potential of an animal, its pedigree, its performance data along with that of its relatives, and now genomic information on that animal. To date, Wagyu BREEDPLAN has used pedigree information along with performance data to estimate the genetic merit of animals for important
Single Step Wagyu BREEDPLAN? Single Step Wagyu BREEDPLAN uses large numbers of DNA markers (50,000) spread across the whole genome to determine the genetic makeup of an animal. This is referred to as the 50K SNP test. The 500 SNP parentage panel is not used in Single Step Wagyu BREEDPLAN and can only be used for Parent Verification and registration of animals. Conducting a 50K SNP test allows Parent Verification as well as enabling the genomic information in the 50K SNP test to be used to improve EBV accuracy in Single Step Wagyu BREEDPLAN.
Q 5. Why is Single Step Wagyu
BREEDPLAN being implemented now? In late 2017 and early 2018, it was determined that a sufficient volume of fullblood and purebred data was available to re-estimate the Wagyu BREEDPLAN genetic model. AGBU have re-estimated the Wagyu BREEDPLAN model using genetic parameters including the thousands of fullblood and purebred performance records submitted by AWA members to BREEDPLAN since 2014/15. The new Single Step Wagyu BREEDPLAN model is now based solely on Wagyu data and Wagyu EBVs are directly derived from Wagyu performance data. The Bos Taurus genetic parameters developed through the Beef CRC have been removed.. >>> page 20 THE AUSTRALIAN WAGYU UPDATE
19
<<< from page 19 Q 6. What significant changes will I see with Single Step Wagyu
BREEDPLAN? Through the use of genomic information, Single Step Wagyu BREEDPLAN improves the accuracy of Wagyu EBVs, most noticeably for young animals or those with little recorded performance information as the genomic relationship to its ancestors or relatives with recorded performance information can be more accurately ascribed. This allows for moderate accuracy EBVs to be generated on young animals based on 50K SNP profiles alone.
Significant changes to some animals EBVs will be seen in Single Step Wagyu BREEDPLAN. These changes are a result of: »»
More accurate mapping of genetic relationship linkage through genomic relationships of animals with no performance records to animals that have performance records.
»»
Wagyu genetic parameters have been re-estimated and are now based solely on Wagyu data. As a result, some of the genetic parameters are different from what had been used previously in Wagyu BREEDPLAN. The revised genetic parameters more accurately describe genetic differences amongst Wagyu animals.
Q 8. Has the terminal carcase index formula changed?
Q 9. How is the terminal carcase index used by breeders?
»»
For sires with accuracy of greater than 75%, the range in EBV for cwt has increased by 35 kgs. Previously, the highest cwt EBV among this group of sires was + 58.1 kg: the highest cwt EBV in this group of sires is now 75.0 kg. This increase is largely due to the improved estimate of the heritability of cwt in Wagyu (it is now higher), with the genetic contribution to cwt being higher than previously estimated. For sires with accuracy of greater than 75%, the range in marble score EBV has decreased by approximately 1 ms unit. The sire with the previous top EBV for ms that was 3.4 is now 2.6, but is still the top sire. This decrease is largely due to the genomic analysis within Single Step Wagyu BREEDPLAN detecting a higher degree of relatedness between these well used sires than was previously estimated within standard Wagyu BREEDPLAN. This has reduced the range in marble score EBVs for high accuracy sires.
Q 7. How do changes in EBVs impact on the terminal carcase index
The changes to EBV ranges within Single Step Wagyu BREEDPLAN mean that cwt now has a relatively larger influence on terminal carcase index compared to the old model, with ms having a relatively lower influence than previously.
The net effect of the reduction in range of marble score EBV and increase range of carcase weight EBV is that the overall range in the terminal carcase index for high accuracy sires is reduced by $269 from $1129 to $860. The sire with the previous top Index value that was $792 is still the top ranking sire, with an Index now of $587. The sire with the previous low Index value that was $-338 is now -$274. Although the numerical range in TCI is reduced, there is still the same ability to detect genetic differences between animals.
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THE AUSTRALIAN WAGYU UPDATE
The terminal carcase index is literally for breeding slaughter animals only and is not intended for use in breeding replacement females. The Australian Wagyu Association is now looking to also develop a fullblood self-replacing herd index so that fullblood breeders can use a balanced breeding index for herd improvement.
Q 10. Are other selection indexes going to be developed by AWA?
Significant changes in the EBV ranges for some traits are also evident in Single Step Wagyu BREEDPLAN. These include: »»
The formula for the TCI remains as previous. This is a combination of ms x cwt EBVs as follows: the assumptions used to calculate the Index are a 420kg carcase, a base price of $8.50/kg carcase weight and an increase/decrease in value of the carcase of $1kg per marbling score. It is assumed that only half of the difference in EBVs will be passed on to the progeny because only half the genes come from the sire. For example, if a cwt EBV is 0, an increase in ms EBV of 1 unit is equivalent to $210 in value in the TCI (50% of $1 x 420kg).
In addition to a fullblood self-replacing herd index, a range of selection indexes will now be considered for development and will commence through industry consultation to identify the new industry $$ indexes which will place varying emphasis on growth, maternal traits and carcase EBVs based on economic and production data for a range of relevant commercial enterprises.
Q 11. Are there any changes to the number of EBVs available to
AWA members? Carcase trimming can impact subcutaneous fat measures and hence the ability to detect genetic differences in rib fat and as a result this trait has been removed from display in Single Step Wagyu BREEDPLAN. An indication of carcase subcutaneous fat is still provided by the Rump-Fat EBV, which is not affected by trimming.
General Notes Development and implementation of Single Step Wagyu BREEDPLAN demonstrates the AWA commitment to continuous improvement and development of EBVs to its members. This is consistent with the Association’s goals to improve the effectiveness and utility of our tools and services. The changes outlined above allow for more balance in the selection merit for cwt and ms. Relatively larger gain can now be made in cwt compared to ms in Single Step Wagyu BREEDPLAN compared to the old model. This has a similar outcome on the TCI, where cwt has a larger relative effect on the TCI. These changes, which have been generated by independent scientific analysis of the available total data submitted to AWA and included in BREEDPLAN. Single Step Wagyu BREEDPLAN uses statistical models developed solely on Wagyu data and includes genomic information through Single Step. Single Step itself has minor influence on EBVs overall, but on average, improves EBV accuracy, especially for younger animals so that more accurate genetic selection can now be made on young animals that have genomic information submitted to Single Step Wagyu BREEDPLAN.
WAGYU & RURALCO The Ruralco group of livestock agencies throughout Australia are pleased to be working closely with the AWA and Wagyu breeders in providing a sales service for all types of Wagyu, Wagyu cross and Wagyu genetics. Ruralco are sole agents for the Elite Wagyu Sale, Mackay, QLD in May 2018 and the Premium Wagyu Sales on AuctionsPlus regularly throughout the year.
SALE DATES FOR 2018 Friday, 2nd March 2018 - Premium Sale Friday, 4th May 2018 - Elite Sale Friday, 6th July 2018 - Premium Sale Friday, 7th September 2018 Premium Sale Friday, 2nd November 2018 Premium Sale Elite Wagyu Sale, Albury, May 2017
Premium Wagyu Sale, Sept 2017
Heifer calf in utero at Females average Embryos average Bulls average Semen average
Mayura L0010 $105,000 MS + 1.6 TCI + $395
$95,000 $25,570 $2,600 $20,799 $334
Macquarie M0480 $88,000 MS + 1.7 TCI + $468
Harvey Weyman-Jones, GDL Stud Stock Manager, Dalby, Queensland is the National Wagyu Coordinator for Ruralco Agencies throughout Australia. Please call Harvey to discuss your needs.
Harvey Weyman-Jones 0414 941 788 hweymanjones@gdlrural.com.au WWW.GDLRURAL.COM.AU
THE AUSTRALIAN WAGYU UPDATE
21
WAGYU BREEDER FARMER OF THE YEAR FINALIST
A Wagyu operation from Bingara in northern New South Wales was one of three beef finalists in the Weekly Times 2018 Farmer of the Year.
The Jac Wagyu herd comprises 100
Founded in 2002, Jac Wagyu is operated by Jason and Ann Lewis and Jason's parents John and Lynn on their 2500 hectare property on the banks of the Gwyder River.
Most prime cuts remain in Australia
The brainchild of Jason – who studied business and marketing at university and worked off farm before returning home – as a way of increasing farm profits, the business has enjoyed a rapid rise to the point where it now sends a container of branded beef to China each month and it is the sole supplier of premium Wagyu to Coles.
side product in the form of rendered
purebred Wagyu cows and heifers and 400 to 500 Angus cows which form the basis of a Wagyu crossbreed operation. The cattle are fed a secret recipe for at least a year and up to 400 days before being slaughtered and packed for market. Two thirds of the 50 Jac Wagyu carcasses produced each month is shipped to China. where customers such as Coles sells cuts in selected Sydney stores. Jac Wagyu also produces a value added Wagyu fat, an alternative to oil or butter for roasting vegetables. Looking forward, with a waiting list of customers, the Lewis family has an ambitious plan to more than double production and diversify their customer base. Short-term they plan to increase turnoff
Last year the herd was named by Meat Standards Australia as the best in New South Wales for eating quality. In 2015 it was in the top three for the state.
Taste the Experience
Since 1991
www.beefcorp.com.au Ph 03 5368 2345
22
THE AUSTRALIAN WAGYU UPDATE
to 100 Head of month. “In the longer term we would like to be turning off 2000 head a year," Jason.
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NEW 2018 BULLS Ginjo Kitahatsuhi L9 (GINFL00009). Combines the distinct Tottori/Kedaka growth lines of Hirashigetayasu (001) and rare Kitahatsuhi 97/1. Two infusions of 100% Tajima in Kitateruyasudoi (003), plus TF151 Itozurudoi . Massive growth with proven marbling, offering options (with Ginjo K930) for joining decisions that capture rare diversity and exceptional performance.
Ginjo Kitaitonami L965 (GINFL00965) Unique ‘semen available’ son of Westholme Kitaitonami , sire of 127 registered AACo fullblood bulls. Do these progeny numbers suggest extraordinary performance in a huge, secretive and very well recorded FB herd Dam side reinforces MS, plus big CWT influences – from Itomoritaka (002), TF 147 Itoshigefuji and TF151 Itozurudoi. All well demonstrated in 2017 drop progeny.
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For further details on the sires, visit the Australian Wagyu Forum website: www.australianwagyuforum.com.au Prices: Domestic Semen Prices: $AUD45 - $AUD65 per Unit. International Pricing & Availability: POA
MIKE BUCHANAN | GINJO WAGYU: - 125 Pindimar Road Tea Gardens NSW Australia 2324 Postal: PO Box 71 Tea Gardens NSW Australia 2324 • m: +61 437 047 234 • t: +61 2 4997 0482 • e: mjbuch@bigpond.com Founding Member: Australian Wagyu Forum www.australianwagyuforum.com.au
THE AUSTRALIAN WAGYU UPDATE
23
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THE AUSTRALIAN WAGYU UPDATE
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$600 STEAK - FOODIE LEGEND INVESTIGATES Sydney's harbourside Black Bar and Grill restaurant at The Star has an off-themenu $600 Wagyu steak meal. It's so rare and exclusive, it has its own private waiting list according to senior foodie Terry Durack.
Writing in the Australian Financial Review, Durack said he visited The Star to find out how good the budget breaking steak really was. Executive chef Dany Karam told Durack he wanted the best steak he could get in Australia ‘and I got it”. Lebanon born Karam trained in his home country before heading to France where he honed his skills and further developed his unique approach to modern cuisine at the Michelin starred restaurant, Particulier. He moved to Australia in 2009 to work at The Star. His culinary expertise elevated him to executive chef status at The Star’s Black Bar & Grill. In 2017 he was named chef of the year in the Tourism Accommodation Australia’s NSW awards of excellence. He is recognised as a passionate authority on all things steak and grilling. Durack was impressed by the massive 1kg dry-aged Wagyu ribeye that chef Karam brought to the table for a look before slapping it on the grill. Durack described it as “Majestic; the fat creamy, and the meat as pink and marbled with creamy white streaks as my mother's formica breakfast table".
Majestic; the fat creamy, and the meat as pink and marbled with creamy white streaks as my mother's formica breakfast table ...
The steak originated from Fulblood Wagyu cattle produced by Victoriia’s David Blackmore and compliments the other Blackmore Wagyu dishes that fill the menu with a range of marble score 9 plus offerings, each on the $100 plus range.
But back to the $600 steak. It had been dry aged on the bone for 28 days by Vic’s Premium Quality Meats Anthony Puharich to break down the fibres, evaporate moisture and concentrate flavour. Finally, it was cooked on the bone over fire which is the only way any decent meet should ever be cooked according to Durack. Karam placed it over cherry wood coals to imbue it with the aromatic smoke and bring it to room temperature. It then moved to the fiercely hot open grill over glowing iron bark logs. No marinade, no herbs, no spices, just Murray River pink salt was all it needed. Karam says his golden rule is to rest the steak for the same time as it was on the grill so 30 minutes later, it arrived at the table looking all of its $600, dark, gnarled and crusty served thinly sliced, reassembled with the bone. So what is the verdict from this senior food critic. “I take a bite and my mouth is instantly swamped with buttery juices, taking me by surprise. It’s the intramuscular fat, clean and buttery melted by the heat. The meat is tender and giving, but still feels like real meat, not memory foam. It’s not so much beefy and savoury and vegetal - pure umami - with a lightly smoky back flavour”. There was a choice of elegant condiments, none of which were necessary. Sommelier Addy Lam suggested a dream pairing would be the 2009 Grange Hermitage at $288 a glass. That offer was declined. While the $600 steak met the highest standards, Durack was more than uneasy about the pricing, even if it is enough for three or four to share. THE AUSTRALIAN WAGYU UPDATE
25
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14/03/2016 10:40 AM
Mathew Walker (Cicero Group) founded Stone Axe Pastoral Company with James Robinson in 2014.
WAGYU INVESTMENT EXPANDS The trend for big investors to see the Wagyu industry as stable and profitable continues with the announcement earlier this year that the New South Wales state government will take a $3.3 million stake in the Wagyu beef agribusiness Stone Axe Pastoral’s Ebor NSW based operation.
Stone Axe Pastoral chief executive Scott Richardson, Northern Tablelands MP Adam Marshall, Deputy Premier John Barilaro and First State Super chief investment officer Damian Graham at the Ebor property on Wednesday.
Announcing the deal the NSW Deputy
well as 114 indirect jobs.
the growth stage equity and alternative
Premier John Barliaro said this was the
Mr Barliaro said the $150 million GO NSW
investments sector.
first investment by the innovative new GO
fund in partnership with First State and
NSW project which allows the government
Stone Axe chief executive Scott Richardson
ROC Partners would target a market gap
to invest in businesses with high growth
where there was a limited depth of liquidity
said the company would now build on
potential.
in Australia.
The deal is a co-investment including $6.7
“This is an important and necessary
million from First State Super.
catalyst if we want to support our
It will allow Mathew Walker’s Stone Axe
companies to become leaders on the global
that total Wagyu beef production will
Pastoral to expand operations at Glen Alvie
stage”, he said.
be around 75,000 tonnes by 2022
at Ebor while maintaining 800 Wagyu
Mr Barliaro said the fund would highlight
representing an average increase in
at Cheviot Hills in Western Australia. It
the quality of investment-ready companies
production of 21% per year. Fullblood
is claimed that 76 full-time jobs will be
in NSW and by doing so unlock additional
Wagyu beef is expected to account for 90%
created by the fifth year of the project as
superannuation investment funds to target
of Wagyu exports by 2022.
its existing fullblood Wagyu breeding program. Mr Richardson send modelling indicates
THE AUSTRALIAN WAGYU UPDATE
27
the marbling breed
International activity regarding livestock DNA intellectual property ownership has prompted the Australian Wagyu Association to take action to protect members’ rights.
AWA CLARIFIES MEMBER RIGHTS TO WAGYU DNA Member ownership of Wagyu livestock DNA, test results and related intellectual property (IP) rights has been enshrined in recent changes to Australian Wagyu Association (AWA) bylaws.
AWA CEO Dr Matt McDonagh says “progressive changes to testing requirements for herdbook registration have been needed to keep pace with rapidly advancing technology. With these changes, the complexity of the genotype data has increased, as has the potential to add value to data for the benefit of both members and the breed.”
then the commercial interface for the testing process.”
The AWA Board believes that Sample and DNA testing result ownership should remain with the member. To deliver this, the Board has commissioned a perpetual right of access legal agreement to member-owned livestock data and samples . This ensures that the AWA can secure its core member resources, the AWA Herdbook and Wagyu BREEDPLAN analyses.
often not protected at this level, and rights may be retained by the
The AWA understands that tissue and hair samples may be exhausted by members through their own testing such that continued sample availability may not be possible.
“Prior to the recent AWA by law changes, DNA supplier testing contracts allocated all IP and the ownership of samples to AWA, as the contracting customer. Wagyu breeders operating outside this umbrella on the basis of informal DNA testing relationships are DNA test suppliers”. “For those breeders now working through the Association, this change is a significant improvement in ownership rights.”
BACKGROUND “It is imperative to Australian Wagyu pedigree accuracy and local Wagyu livestock values that we use the latest generation of technology, which is now SNP,” says McDonagh, “and equally
PREVIOUS AGREEMENTS
important that we then have ongoing access to state-of-the-
Under previous agreements, standard DNA testing supplier contracts delivered ownership of all results and related IP to AWA.
art DNA tests that link the current national herd to the Wagyu
The Association has now responded to increasing global awareness of the value of DNA and related data in agriculture by ensuring that all contracts with DNA testing suppliers are uniform in delivering all IP and sample ownership rights to AWA in the first instance, with the significant change that the Association then re-assigns ownership back to members, simply retaining the perpetual right of access essential for the maintenance of herdbook and Wagyu BREEDPLAN integrity. “We are simplifying a legally complex issue,” Dr McDonagh explains. “Historically, the AWA has provided the economic incentive to both local and global scientific organisations capable of providing the DNA testing services that all Wagyu breeders need to maintain breed integrity. In the majority of cases the Association is 28
THE AUSTRALIAN WAGYU UPDATE
foundation nucleus exported from Japan. The advent of SNP has recently demanded a new generation of DNA supplier contracts, and this transition has coincided with the rise of global interest in the related area of agricultural IP. ” According to Dr McDonagh, the recent by-law changes are a specific recognition of this current global DNA IP ownership discussion in agriculture. Since commencement in the early 1990s, AWA has been the Australian beef cattle breed leader in the compulsory use of molecular science for parent verification through succeeding generations of DNA testing technologies.
MEDIA ENQUIRIES Dr Matt McDonagh
matt@wagyu.org.au
AU S T R A L I A ' S P I O N E E R F U L L B L O O D WAG Y U B R E E D E R :
S U M O WAG Y U
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w w w. s u m o w a g y u . c o m * All quoted prices are listed per unit, in Australia dollars, including GST. Orders for export semen will incur additional export fees. * All EBV’s and TCI’s listed are correct as at 20.2.18 and are subject to change.
THE AUSTRALIAN WAGYU UPDATE
29
30
THE AUSTRALIAN WAGYU UPDATE
Yasutani
Tajima 68.75% Yasumi 25 % Kikumi 25 % Nami 18.75% Itozakura 25% Kedaka 3.125% Shimane 3.125%
TF900 FB11741
TF813 Kimitofuku
Breeding Rotation B-D
TF760 FB7506
Kimifuku 3
TF709 FB7578
TF148 Itoshigenami
TF1012 YASUTANI ID TFWFJ1012
TF600
Kikutsurudoi
Yukifuku
Tanifukudoi
Hikokura 1/12
Kimifuku 3
Fukuyuki
Shigeshigenami
Improve your herd!!
Yoshizuru 1
Tajima 68.75% Okudoi 37.5% Nami 18.75% Yasumi 12.5% Itozakura 18.75% Kedaka 6.25% Shimane 3.125% Okayama 3.125% CF505 FB5699
Okumiya J10588
Breeding Rotation B-D
TF727 YOSHIZURU 1
Hikokura 1/10
TF148 Itoshigenami
Miyako J205158
Okutani J8819
ID IMUFBTF727
Hikokura 1/7
Itomichi
Fukuyuki
Shigeshigenami
Ootsuki
Shiroasa
Dai3 Yoshiko
Okushirodoi
Takeda Farm Pty Ltd takedafm@bigpond.com
THE AUSTRALIAN WAGYU UPDATE
31
Tajima 68.75% Yasukimifuku Kikumi 28.125% 2 Yasumi 28.125% Nami 12.5% Itozakura 18.75% Kedaka 6.25% Shimane 3.125% Okayama 3.125%
TF705 FBB7573
TF 1012 Yasutani
Hikokura 1/12
Kimifuku 3
TF900 Tanifuku
Hikokura 1/11
Itomichi
Yukifuku
Tanifukudoi
TF760 Kikutsuru
Kimifuku 3
TF709 Kimifuku
TF148 Itoshigenami
ID TFWFB26094
TF813 Kimitofuku
Breeding Rotation B-D
TF1026D YASUKIMIFUKU 2
i
Tajima 50 % Yasumi 18.75% Kikumi 15.625% Nami 15.625% Itozakura 50 %
TF705 FBB7573
TF604 Itomichi
TF900 Tanifuku
TF813 Kimitofuku
Also used in Japan
TF1005 Itofuku
TF 1012 Yasutani
Breeding Rotation A-C
Hikokura 1/12
Kimifuku3
CF504 Itoshigenami
TF36 Itomichi 1/2
TF760 Kikutsuru
Kimifuku 3
TF709 Kimifuku
TF148 Itoshigenami
TF1028D ITOYASUNAMI ID TFWFB26092
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THE AUSTRALIAN WAGYU UPDATE
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2/3/18
3:28 pm
Exploring Wagyu origins and markets
JAPANESE WAGYU TRADE MISSION
JAPAN’S MAGNIFICENT 2017 ZENKYO WAGYU SHOW, IN PICTURES AND WORDS Highlights for participants on the Japan Wagyu trade mission organised by the Australian Wagyu Association.
Jon Condon Beef Central
One of the highlights for participants on the Japan Wagyu trade mission organised by the Australian Wagyu Association was the opportunity to visit the All Japan Wagyu Show (Zenkyo) held this year in Sendai, north of Tokyo. While vaguely reminiscent of stud cattle shows like Brisbane’s Ekka and Sydney Royal Easter Show, the Japanese turn on a spectacle for the event, held only once every five years, unlike anything this reporter has seen. Firstly, the Zenkyo is truly national, with 37 of Japan’s 43 regional prefectures stretching from the far northern island of Hokkaido to the country’s extreme southern sub-tropical tip around Kagoshima and Oita all represented in the judging ring.
ABOVE One of three enormous grandstands housing the Zenkyo crowd as the show gets underway. The AWA contingent is in there somewhere.
About 550 Black and Red Wagyu cattle were entered in all bull and heifer classes, with separate meat judging competitions on top of that. Judging criteria on the hoof was difficult to ascertain, especially as the Wagyu industry in Japan is so heavily focussed on carcase performance. Each prefecture’s livestock show team was decked out in distinctive uniforms, and prefectures had their own rowdy cheer squads
in the stands, bellowing out slogans and madly waving flags and banners when results were announced, or their team entered the ring. The main stadium in which judging took place seated about 7,000 in air-conditioned comfort, and was standing-room only for the peak events during the judging program. One local media report suggested 417,000 people had attended the five-day long event. While there was no outright first place awarded, one of the sentimental favourites, Kagoshima prefecture, finished first in the coveted group award, followed by Miyazaki (both renowned regions of high marbling performance Wagyu), and the southern prefecture of Oita, third. Miyazaki had won the group award at the previous two Zenkyo events, bouncing back after a devastating FMD outbreak in 2012. The entire live cattle judging process carried a great sense of ceremony and occasion, with officials and dignitaries decked-out in morning suits and corsages, and speeches during the event’s closing ceremony, witnessed by the tour group, running to 90 minutes. >>> page 34 THE AUSTRALIAN WAGYU UPDATE
33
A local media report suggested 417,000 people had attended the five-day long 2017 Zenkyo Wagyu Show.
<<< from page 33 Another important part of the event is a Wagyu carcase competition, with judging based on camera images captured by the Japanese vision grading camera collected at meat processing plants across Japan. Carcases were judged against the Japanese Meat Grading Association’s benchmarks for quality (1-5) and yield (A-C).
About 550 Black and Red Wagyu cattle were entered in all bull and heifer classes, with separate meat judging competitions on top of that. AWA President pictured right) Peter Gilmour makes a point during an interview with Japan's leading finance and business newspaper, Nikkei, during Zenkyo.
Results and photos for each carcase were displayed prominently on noticeboards at Zenkyo, and prize-winning carcases attracted a great deal of attention. During the auction that followed, Australian visitors saw one show-standard Japanese A5 graded carcase, 453kg carcase weight, sell for 10,600 Yen/kg (Y4,801,800), or the equivalent of $54,126 Australian. That price inevitably contained some ‘promotional value’, not unlike a led steer at Brisbane or Sydney Royal show selling to a supermarket chain or steak restaurant for $15 or $20/kg, liveweight. Similar carcases were seen a week earlier by the tour group passing through the Tokyo Central Meat Market for the equivalent of $18,000-$20,000 Australian. Outside the main show judging pavilion was an area set up with trade booths representing each prefecture, promoting semen and genetics sales and the distinctive qualities of each region’s beef. Many appeared to be doing good business with local cattle producers seeking herd improvement. Some were identified as dairy F1 breeders, and others fullblood Wagyu. Beyond that was a commercial trade show promoting everything from feed ingredients and animal health products to software and stock handling equipment. Seminars were held in nearby rooms. Food was another Zenkyo highlight, with Wagyu beef samples and countless other traditional Japanese foods available to patrons. Thinly-sliced barbecued tongue meat is much prized in the local Miyagi area, and it was available in abundance at Zenkyo. One of the clear messages at the event was a heightened biosecurity awareness, perhaps linked to the country’s 2012 Foot & Mouth Disease outbreak. Unlike earlier five-yearly events, the general public including the Australian tour group was unable to enter the cattle stalls/ accommodation area, and disinfectant foot-baths and other precautions were commonplace. 34
THE AUSTRALIAN WAGYU UPDATE
AWA study tour group arriving at Zenkyo.
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THE AUSTRALIAN WAGYU UPDATE
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THE AUSTRALIAN WAGYU UPDATE
NSW PUSHES WAGYU EXPANSION More Australian Wagyu may be destined for international markets following a successful industry study tour to mainland China and Taiwan as part of the New South Wales Department of Primary Industries Australian Wagyu Export Capability Development Program.
Designed and implemented by the NSW DPI around collaboration between Government, producers and industry organisations, the program is the first of its kind specifically for the Australian Wagyu industry. NSW DPI Project Manager, Ryoko Uchida said overseas demand for Australian Wagyu products was continuing to increase. “It is vital for producers to understand international markets and their requirements, as it will help them to have clearer breeding plans that specifically match product to the markets,” she said. “The market visit is a key element of the program, helping producers develop and improve the business culture, skills and knowledge required for the trade with Shanghai and Taipei. “It provided valuable opportunities to learn about the market and import requirements from different perspectives, and allowed the participants to expand their networks and to explore current and future trade opportunities.” Mainland China was the fourth highest value export market for Australian beef to the value of A$832 million in 2017, while Taiwan is a steady importer of Australian Wagyu and is constantly looking for new suppliers.
The Australian Wagyu delegation that visited China recently as part of a NSW DPI program aimed at expanding Wagyu’s export capabilities.
Ms Uchida said Australian Wagyu is in a unique position with a globally well-known premium brand and further industry growth expected. “Along with opportunities international markets present, our program has also
allowed the industry to understand market challenges for their strategic approach to international markets,” she said. Fourteen producers from 11 farms across Australia participated in the study tour, including Peter Gilmour, President of the Australian Wagyu Association. “As delegates we were able to meet customers first-hand to see and understand their requirements and determine uptake and sales arrangements,” Mr Gilmour said. “There were several compelling presentations and opportunities that could not be accessed without being present in market. “For many of the customers this was the first time they had met a Wagyu delegation and could appreciate some of the intricacies of Wagyu production techniques. “This was a great NSW DPI initiative and will have a lasting impact on the attending delegates and their businesses.” The supporting organisations include, Australian Wagyu Association, MLA Austrade and Export Council of Australia, along with NSW Department of Industry. In addition to the market visit, the DPI’s comprehensive export program also includes post-visit webinars to further support the participants with the implementation of their export business. The webinar contents will be customised specially geared at Wagyu export businesses and trade development, assisted by Export Council of Australia and the relevant Government and red meat industry. THE AUSTRALIAN WAGYU UPDATE
37
WAGYU CATTLE NUMBERS RISING Specialist Wagyu breeder and retailer Pete Cabassi says it is a constant challenge to have sufficient quantities of the highly marbled product on hand at his gourmet butcher shop in the Brisbane suburb of Coorparoo. Mr Cabassi, who operates Kobe’s of White Hill in inner-city Coorparoo, said there was still a major gap in production compared to the constant demand from Brisbane consumers. “Wagyu is absolutely dominated by the 90 per cent-plus sales that exist in the export market,” said Mr Cabassi who recently joined the Board of Australian Wagyu Association. “It means so much product is going overseas it can be difficult to have enough product in store just to meet our customers expectations. “We certainly like the buzz that accompanies the arrival of new product each fortnight, but we could certainly sell a lot more if it was available.” Mr Cabassi said there was no doubting the future of the Wagyu industry. “It is now plain to see that Wagyu has begun to embed itself into the most powerful extensive cattle raising operations and is increasing at a rapid rate,” Mr Cabassi said. “This industry is vibrant, aggressive and growing. Australian Wagyu Association president Peter Gilmour said the industry was very much in a growth phase. Over time it was likely 38
THE AUSTRALIAN WAGYU UPDATE
numbers would double. “We’ve come from a few hundreds animals in the early 1990s to having about 36,000 full blood and pure bred Wagyu animals,” Mr Gilmour said.
... we're well on the way having more than a million Wagyu cattle in Australia over time.
“We also estimate there are about 400,000 crossbred animals in the national herd, that are found across a wide range of climatic conditions including the hot pastoral regions. “I think we’re well on the way having more than a million Wagyu cattle in Australia over time.” Japan has about 1.4 million Wagyu cattle.
Mr Gilmour said the advent of genomics was enabling the industry to more accurately predict the production potential of individual animals. “Feedlot capacity will always be a constraining factor for long fed animals,” Mr Gilmour said. “Wagyus typically go into a feedlot for 350500 days meaning they take up a lot of time compared to short fed cattle.”
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THE AUSTRALIAN WAGYU UPDATE
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Wagyu also boasts a number of mature value chains with relationships between brand owners, processors, feedlots and producers highly integrated.
WAGYU EXPANSION CONTINUES Wagyu has opened beef production up to new faces The Australian Wagyu Association (AWA) takes on around 100 new members each year and many come from a background outside livestock production. Chief executive officer Dr Matthew McDonagh said the Australian Wagyu Association had a unique mix of members in that most obtained the lion’s share of their income from commercial production and the membership covered the full supply chain from seedstock producers to international brand owners. “Our membership base is increasing also in scale of enterprise, with 50 per cent of members having less than 100 head three years ago but less than 30pc now having less than 100 head,” he said. Of AWA’s 600 members, 500 are from Australia, predominantly NSW, Queensland and Victoria, with others coming from the United Kingdom, Europe, New Zealand, the United States and South Africa. They are looking to benefit from the only global genetic analysis system for Wagyu, Dr McDonagh said. Shan Goodwin Fairfax Ag Media
40
Wagyu also boasts a number of mature value chains with relationships between brand owners, processors, feedlots and producers highly integrated, he said.
THE AUSTRALIAN WAGYU UPDATE
Wagyu occupies the luxury beef market and within this, there appears to be a trend towards very highly marbled beef - marble scores of eight, nine and nine-plus, with demand for this product very high in export markets, Dr McDonagh said. “There is also a huge opportunity for marble score four and five product in domestic markets, and we need to be working hard with the Australian consumer to improve their understanding of the phenomenal attributes of wagyu beef”. Is there opportunity for grass-fed Wagyu? Perhaps, said Dr McDonagh. “However, given the energy demands in depositing fat as opposed to muscle, it can be difficult to finish Wagyu content cattle on grass as they can't consume the volumes required to obtain the unique high marbling characteristics of Wagyu beef”, he said The protein and energy requirements for Wagyu are different to normal cattle as they deposit so much more fat in the way of marbling over their life, Dr McDonagh explained. “Energy intake required to deposit a gram of fat is three times that of lean meat. So the feed requirements of Wagyu are different to other breeds of cattle”.
THE AUSTRALIAN WAGYU UPDATE
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THE AUSTRALIAN WAGYU UPDATE
GRADING-UP PATHWAY NOW AVAILABLE To satisfy rapidly growing international demand for high Wagyu content beef carrying high levels of marbling, the Australian Wagyu Association has introduced a grading-up option giving producers the opportunity to participate in the premium end of the market. It is estimated the next four years will see a move towards breeding higher content Wagyu cattle through grading up by using fullblood and purebred bulls over Wagyu content females. While Wagyu prices are in line with the general correction in cattle prices, the premium for high content Wagyu has held. As a result, parts of the Australian Wagyu industry are now transitioning towards more consistent production of high content carcases. Basically, grading up refers to retaining F1 females and crossing them back fullblood or purebred bulls. The Wagyu explosion has been nothing short of phenomenal jumping by around 20% per year in the past five years and expected to continue at that rate to at least 2022. The push to increase the Wagyu content of cattle in feedlots to F2 or higher has many producers rethinking what is likely to unfold in the fullblood and purebred areas with large embryo transfer programs underway with more than 25% of matings occurring by ET. A new SNP based crossbred Wagyu test is now available as another quality assurance option enabling progeny of tested animals to be upgraded to purebred status. Before this new development the only quality assurance technology available to admit and progress an animal to the next level of the grading-up process was DNA parent verification.
BACKGROUND It is a requirement that Wagyu animals be parent verified before entry into the AWA Herdbook Register. This requirement invariably results in some fullblood or purebred animals failing their parent verification (PV) to one or both of the parents through the parents
the progeny of the F2 as F3 and the
death or inaccessibility, and as a result, the animal cannot be registered in the Herdbook Register.
progeny of the F3 as purebred. Also see figure 1 below for a schematic description of the process. It is clear
THE CURRENT GRADING-UP SYSTEM
that, after a failed PV, it could take 10
Until recently, the only option when an animal failed its PV was to either register the animal in the Wagyu Content Register or enter the animal as a crossbred Wagyu F1 50% (as it normally qualifies as the progeny of one of the parents) into the Wagyu grading-up section.
years or three to four generations of breeding to get the progeny back into the Herdbook as registered purebred animals. Many breeders saw this as too much effort and taking too long and opted not to register the animal and just added it to their â&#x20AC;&#x153;commercialâ&#x20AC;?
Under the current grading-up system parent verification is the only technology allowed to quality assure the expected minimum percentage Wagyu content of an animal. Therefore, if no parentage can be guaranteed (through parent verification) the animal has to be entered as a Base animal (grade 0) or if the animal have been parent verified to one fullblood (FB) or purebred (PB) Wagyu parent the animal is regarded as an F1 (grade 1). Subject to successful parent verification at every generation, the progeny of an F1 animal is eligible for F2 status,
herd to breed slaughter progeny. As a result, the Wagyu industry missed out on the registration of valuable genetics that could help to maintain the genetic diversity of the breed.
THE EMERGENCE OF A NEW TECHNOLOGY The AWA in conjunction with the Animal Genetics and Breeding Unit (AGBU) developed the Crossbred Wagyu Test (CWT) to determine the Black Wagyu (Japanese Black) content of a DNA sample. Genotypes of eleven breeds were used, including about 1,600 from Wagyu, to develop the test. >>> page 44
FIGURE 1 The quality assurance of Wagyu content in the current grading-up system.
FB or PB WAGYU
UNKNOWN ANIMAL
GRADE 0
AFTER SUCCESSFUL PV TO WAGYU PARENT
FB or PB WAGYU BULL
F1 (50+% WAGYU)
GRADE 1
AFTER SUCCESSFUL PV TO BULL AND COW
FB or PB WAGYU BULL
F2 (75+% WAGYU)
GRADE 2
AFTER SUCCESSFUL PV TO BULL AND COW
FB or PB WAGYU BULL
F3 (87+% WAGYU)
GRADE 3
AFTER SUCCESSFUL PV TO BULL AND COW
PB (93+% WAGYU)
GRADE PB
THE AUSTRALIAN WAGYU UPDATE
43
<<< from page 43 To analyse the Wagyu content it is necessary for the DNA sample to have been SNP genotyped to at least 20,000 SNPs (20K). While the test is regarded as highly accurate, early test development identified a very small number of fullblood animals with CWT results in the vicinity of 70% Wagyu breed content. These lower
animal has been allocated a grade code (based on its CWT result) its progeny can progress to the next grade either through parent verification or by a CWT result. TABLE 1 Grade codes that will be allocated based on an animal’s Crossbred Wagyu Test result.
than expected CWT results were found to be representative of CWT result
some of the rarer Wagyu bloodlines and therefore potentially very
Allocated Grade
valuable and important to preserve genetic diversity in the Wagyu
Below 50%
0
population. The CWT results are reflective of the unique genomic
50+%
1
75+%
2
THE NEW GRADING-UP SYSTEM
87+%
3
The AWA board accepted changes to the bylaws that allow the
93+% without PV 93+% with PV
4 (if not parent verified) PB (if parent verified to sire and dam)
makeup of these rare fullblood animals.
use of the CWT as another technology to quality assure the Wagyu breed content of an animal and allow the animal to enter the grading-up system at a grade that reflects the CWT result. Therefore, an animal can be SNP genotyped and CWT analysed and if the result of the CWT is 87% or higher the animal will be allocated a grade code of 3. Table 1 below indicates the grade that
TABLE 2 CWT results and the current grading-up system (using parent verification for quality assurance) can be used to determine the grade of an animal.
Crossbred Wagyu Test Result
Allocated Current Grading-up result Grade
will be allocated to the animal based on its CWT result.
Below 50%
0
Base Animal
It's important to note that for an animal to be graded as “purebred”
Higher than 50%
1
F1 (PV’ed to a Wagyu Parent)
through this process the requirement has been maintained for a
Higher than 75%
2
F2 (PV’ed to both parents)
purebred animal to be parent verified to both its sire and dam.
Higher than 87%
3
F3 (PV’ed to both parents)
Therefore, even if an animal has a 99% CWT result, but cannot be
Higher than 93% (without PV)
4
Higher than 93% (with PV)
PB
parent verified to both its parents, the animal cannot be allocated the purebred grade and will be allocated a grade code of 4. Once an
44
THE AUSTRALIAN WAGYU UPDATE
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MOVING TOWARDS SNP PARENTAGE VERIFICATION
Catriona Millen Southern Beef Technology Services
DNA parentage verification offers beef producers a tool to accurately determine animal parentage and reduce pedigree errors which may otherwise occur. This article will explore how parentage verification works, the DNA markers that are used for parentage verification, and examine the best way for beef producers to manage the transition from microsatellite to SNP parentage verification.
and E. For Marker B, the calf has the genotype ‘BB’, so one ‘B’ allele must have come from the dam and the other from the sire. Of the five sires, Sires 1, 3, 4 and 5 have a ‘B’ which they could have passed on to the calf. Sire 2 can be ruled out. For Marker C, the sire of the calf must have passed on ‘C’ – once again this rules out Sire 4. Sires 2 and 4 are ruled out yet again at Marker D, where the sire of the calf must have passed on ‘d’. For Marker E, the sire of the calf must have passed on ‘e’, which rules out Sires 1 and 5 as possible sires. At the end of this process, the only sire left as a potential
HOW DOES PARENTAGE VERIFICATION WORK? DNA parentage verification works by analysing a series of DNA markers in the progeny and in potential parents. For each DNA marker, one of the two variants observed in the progeny must have come from the dam and the other from the sire. Therefore, potential parents can be ruled out if their DNA markers do not match those observed in the progeny.
sire candidate is Sire 3. Note that this process does not “prove” that Sire 3 is the sire of the calf; rather, it does not eliminate him as the sire. In this simple example, five markers were enough to eliminate four of the five sire candidates from contention. In real life situations, many more markers are used for parentage verification.
DNA MARKERS USED FOR PARENTAGE VERIFICATION
In the example shown in Figure 1, the calf and dam have been genotyped, as have five candidate sires. For simplicity, five different markers (Markers A, B, C, D and E) are being used. When we examine Marker A, we can see that the calf has the genotype ‘A a’, and the dam has the genotype ‘aa’. In this instance, the dam must have passed on ‘a’ to her calf. Therefore, the ‘A’ must have come from the sire. Sires 1, 2, 3 and 5 could have passed on an ‘A’ to the calf, so are potential sires of the calf. Sire 4, having the genotype ‘aa’, could not have passed on an ‘A’ to the calf, so can be ruled out as a potential sire.
The two types of DNA markers that have been used for
We can then repeat this process for Markers B, C, D
were the DNA marker >>> page 49
ANIMAL
DNA parentage verification in cattle are microsatellites and Single Nucleotide Polymorphisms (SNPs). A microsatellite is a repeat of a particular base pair sequence at a specific location in an animal’s DNA. The number of base pair repeats can differ between animals. Figure 2 shows a CA microsatellite, where animal 1 has three repeats and animal 2 has five. SNPs occur where there is a difference in a single base pair. This is highlighted in Figure 2 where A is substituted for T between the animals. Historically, microsatellites
MARKER A
MARKER B
MARKER C
MARKER D
MARKER E
CALF
Aa
BB
CC
dd
Ee
DAM
aa
Bb
CC
Dd
EE
SIRE 1
AA
Bb
Cc
dd
EE
SIRE 2
Aa
bb
CC
DD
ee
SIRE 3
Aa
BB
CC
Dd
Ee
SIRE 4
aa
Bb
cc
DD
ee
SIRE 5
AA
Bb
Cc
dd
EE
FIGURE 1 Parentage verification compares the genotype of a calf against the genotype of its dam and candidate sires. Here, five markers are used to eliminate four of the five sire candidates as the potential sire of the calf. 46
THE AUSTRALIAN WAGYU UPDATE
INDEX VALUE
BREED AVERAGE
+$564
+$143
January 2018 Wagyu GROUP BREEDPLAN GL
BW
200
400
600
MCW
MILK
SS
CW
EMA
RIB
RMP
RBY
MS
IMF
EBV
-0.9
+1.5
+14
+25
+26
+27
-2
0.0
+21
+2.4
-1.3
-1.9
+0.5
+2.2
+0.56
ACC
49%
54%
57%
59%
58%
53%
54%
48%
59%
57%
53%
58%
52%
64%
55%
THE AUSTRALIAN WAGYU UPDATE
47
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THE AUSTRALIAN WAGYU UPDATE
Moving towards SNP parentage verification <<< from page 46
used for parentage verification. However, SNPs are replacing microsatellites as the genetic marker of choice because of their greater abundance and stability. The greater abundance of markers means more markers can be included in tests, allowing them to be more powerful and accurate, while the greater stability means the test will remain accurate over many generations.
TRANSITIONING FROM MICROSATELLITE TO SNP PARENTAGE VERIFICATION FIGURE 2 There are two types of DNA markers; microsatellites (shown here as a CA repeat) and SNP (shown here as an A/T SNP).
MICROSATELLITE
Animal 1 ATGCCACACAATGC
Animal 2 ATGCCACACACACAATGC
SNP
Animal 1 ATGCCACCCATGCCAT
Animal 2 ATGCCTCCCATGCCAT
While many beef cattle societies are moving away from microsatellite parentage verification tests to the newer SNP parentage verification test, one limitation to this upgrade is that microsatellites and SNPs are incompatible. Unfortunately, microsatellite profiles cannot be converted to a SNP profile equivalent. Therefore, animals which require parent verification via DNA need to have the same type of DNA profile as their parents. In situations where the calf is to be parent verified using a SNP profile, and the parents only have a microsatellite profile, then the parents would need to be re-genotyped to have a SNP profile. Let us consider the best way to manage the upgrade from microsatellite to SNP parentage verification when full parentage verification is required (both sire and dam), as outlined in Figure 3. In Year 1, all sires and dams that have calves born in the Year 1 calving drop should be re-tested using SNP, as their microsatellite profile will not be compatible with a SNP profile. Their calves could then be parent verified using SNP. In Year 2, the only parents requiring a SNP profile are the new sires and dams coming into the herd (in this case, 2 year old bulls and 2 year old replacement heifers). The calves born in Year 2 can then be parent verified using SNP, as their parents would either have a SNP profile on file from Year 1 or have been tested in Year 2. In Year 3, the 2 year old sires and replacement heifers coming into the herd were born in Year 1, and so already have a SNP profile from when they were parent verified as calves. Therefore, in Year 3 and beyond, only the new calves would need to have a SNP profile done.
SUMMARY The process of parentage verification, where a series of DNA markers are analysed in the progeny and potential parents, allows breeders to identify the most likely sire and/or dam of the animal being tested. While traditionally microsatellite markers have been used for parentage verification, the newer SNP parentage verification method provides improved accuracy and stability. In the upgrade from microsatellite to SNP parentage verification, some animals that have previously been tested via a microsatellite profile will need to be retested using a SNP profile. However, this can be managed effectively to reduce the number of animals that already have a microsatellite profile and require re-testing to get a SNP profile.
FIGURE 3 The upgrade from microsatellite to SNP parentage verification can be managed to reduce the number of animals that already have a microsatellite profile and will require re-testing to get a SNP profile. In this full parentage verification example, all sires and dams of the Year 1 calves are re-tested using a SNP profile, allowing the calves to be parent verified using SNP. In Year 2, the calves will have a SNP parentage verification test done, with only new sires and heifers entering the herd requiring re-testing to get a SNP profile. From Year 3 onwards, all new sires and heifers entering the herd should already have a SNP profile, so only the current drop of calves will require a SNP parentage verification test.
YEAR 1
YEAR 2
ALL SIRES (all ages)
2YR OLD SIRES (1 year on in YEAR 1)
DAMS (all ages)
2YR OLD HEIFERS (1 year on in YEAR 1)
CALVES (born YEAR 1)
CALVES (born YEAR 2)
YEAR 3
2YR OLD SIRES & HEIFERS (born in YEAR 1) Already tested
CALVES (born YEAR 3) THE AUSTRALIAN WAGYU UPDATE
49
WAGYU BURGER TOP OFFERING AT MACCA’S Global burger restaurant giant McDonald’s has launched a Wagyu burger offer in the Australian market, available through the company’s network of 970 stores nationwide, while stocks last. Australia is often used by McDonald’s as a ‘testbed’ for new products, including the McCafe concept, now taken worldwide, the McAngus burger, and the nowshelved ‘Design your own burger’ concept. Sales of the Wagyu Beef Burger started on March 21. A McDonald’s statement says in a world-first, Aussies will be able to get their hands on the new burger (McWagyu was a step too far, apparently) - featuring 100pc Australian-bred Wagyu beef. The project is described by the company as a ‘limited time offering’, rather than a trial. The new Wagyu burger breaks new ground for Macca’s in a number of areas – particularly in price point. The $10.75 retail price sets a new high for a McDonald’s burger (not linked to a meal deal or other add-ons like a second pattie). It is the first McDonald’s ‘a la carte’ (single item burger) to exceed the $10 barrier. Speculation has been evident in industry circles for years that McDonald’s may at some time launch a Wagyu beef offer – especially following the outstanding success of the company’s McAngus program in 2010. Questioned about such a prospect at industry gatherings, the company in the past has always said it would not rule-out any new product launches, but pointed to ‘critical mass’ as an important factor with a product like Wagyu. Wagyu industry growth in the past three years may have heightened the prospect of the launch.
Jon Condon Beef Central
50
“The delicious Wagyu beef pattie on the new burger is served on a brand-new gourmet bun, and alongside a specially created sauce, crispy bacon strips, caramelised onion, tomato, lettuce, and a slice of Coon cheese,” the statement said. The burger patties are being made at Keystone’s Australian Foods Corporation pattie plant near Coominya in southeast Queensland. The 151gram
THE AUSTRALIAN WAGYU UPDATE
portion size is the same as McDonald’s existing McAngus patties. Internally, the size is referred to as a “three-for-one,” meaning there are three patties to the imperial pound. “It’s a big eat,” a company contact said. McDonald’s Australia’s chief marketing officer Jenni Dill said it was exciting for the company to be able to serve up a world-first McDonald’s burger that centred on an ingredient Australians loved – 100pc Australianbred Wagyu beef. “The introduction of the Wagyu Beef Burger has given Macca’s the opportunity to source from a new stream of Aussie farmers, with all the Wagyu beef being sourced entirely from Australia,” she said. Director of supply chain at McDonald's, Robert Sexton, said “At Macca’s we believe in the quality and taste of Australian produce, and we’re proud of our long history of supporting the Australian agriculture industry. The launch of this burger is further testament to our commitment to use local suppliers wherever possible.” He estimated that while the burger was on store menus, McDonald’s would purchase more than 280 tonnes of Wagyu manufacturing beef. Beef Central understands that well-established Wagyu supply chain Stanbroke Beef is the primary supplier of raw material for the program, from its export plant at Grantham in Queensland's Lockyer Valley. Australian Wagyu Association chief executive officer Matt McDonagh commended the initiative, which he said brought a brand new beef eating experience to McDonald’s customers. “We look forward to hearing how Australians respond to this new addition to McDonald’s menu,” he said. The Wagyu Beef Burger is part of the McDonald’s Gourmet Creations range and will be served nationwide as long as stocks last.
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THE AUSTRALIAN WAGYU UPDATE
51
2017 AUSTRALIAN WAGYU ASSOCIATION SURVEY
PRODUCTION FORECASTS The AWA strategic survey was conducted over March to June 2017 asking respondents a range of questions about their interaction with the Australian Wagyu Association (AWA), their use of genetic improvement tools and the composition, size and growth of their business out to 2022.
The survey was designed to obtain feedback from members on AWA services and products as well as obtain descriptive statistics on our industries growth dynamics and production forecasts. All of these pieces of information will feed into our mid-term Strategic Plan review in 2018. The survey obtained responses from 216 members, which amounted to approximately 40% of the total AWA membership at the time of the survey. Of these 216 members, approximately 90% were full members, representing approximately 50% of AWAâ&#x20AC;&#x2122;s full members.
AUSTRALIAN WAGYU INDUSTRY PRODUCTION AND SUPPLY CHARACTERISTICS The Wagyu industry is rapidly increasing in size, with 1 in 5 respondents to the AWA survey not involved in the industry at the time of the last AWA survey and 35% of respondents involved in the Wagyu industry for less than 5 years. The AWA membership base (which is mostly full members) is dominated by family operations, also with a significant number of family-owned corporates. Currently, 71% of operations are moderate to small in size (<500 head), however herd sizes are increasing rapidly and this number is likely to drop (through organic growth and potentially also amalgamation). Compared to producers with 1000 or more head of Wagyu on their farm in 2014 (11% of total respondents), the proportion of total respondents whose per farm herd size is now 1000 or more is 18% and will increasing significantly again to 27% by 2021.
YEARS INVOLVED IN WAGYU PRODUCTION 20+ YEARS 15 -19 YEARS 10 - 14 YEARS 5 - 9 YEARS < 5 YEARS WHICH OF THE FOLLOWING BEST DESCRIBES THE STRUCTURE OF YOUR FARM? ABOVE Photo taken looking to the north from the Big Bluff, Robbins Island in NW Tasmania, 7 mile beach and Walkers Island in view with polled purebred Wagyu cows and calves grazing on the grassland.
52
THE AUSTRALIAN WAGYU UPDATE
74.5% FAMILY OPERATION
6.7%
18.8%
CORPORATE OWNED OPERATION
FAMILY OWNED CORPORATE
0% OTHER
HERD SIZE PER FARM
100%
0% 2%
90%
1% 1% 8%
11%
1,000 +
12%
8%
80%
1%
5% 18%
1,000 +
4% 4%
50,000+
18%
10%
70%
27%
60%
10,000 - 49,999
1,000 +
27%
18%
5,000 - 9,999
50% 1,000 - 4,999
43%
40%
42%
30%
500 - 999
54% 20%
100 - 499
28%
10%
13%
0% 3 YEARS AGO
TODAY
Wagyu industry producers rely on Wagyu for most or all of their income (average 67%). This is especially the case for those involved in seedstock/genetics. There is significant crossover between fullblood/ purebred production, crossbred production, and seedstock/genetics, with only 36% mentioning only one type of income-generating activity. Commercial
0 - 99
IN 5 YEARS production of fullblood and crossbred animals accounts for 73% of producer income, with 27% of income from seedstock/genetic sales. The 2017 survey indicates that in terms of both commercial and seedstock production, fullblood/purebreds will be responsible for an increased share of income over the next 5 years. Domestic fullblood and purebred joinings are projected to double over the next 5 years and there are similar projected increases in the proportion of FB/PB cattle on feed projected by feedlotters and very strong growth is forecast in sales of semen straws and embryos, especially in export markets.
% OF FARM INCOME DERIVING FROM WAGYU 60 50
AVERAGE = 67%
MEDIAN = 80%
40 30 20 10 0
10
11
11
11
3
18
0-9%
10-19%
20-29%
30-39%
40-49%
50-59%
7
5
60-69%
70-79%
13
20
56
80-89%
90-99%
100%
THE AUSTRALIAN WAGYU UPDATE
53
2017 Australian Wagyu Association Survey
TOTAL PRODUCTION PROJECTIONS BASED ON MEAT AND LIVESTOCK AUSTRALIA AND AWA MODELS The above data was used to inform the 2014 AWA model to predict annual joinings and turnoff figures through to 2022. In considering the model outputs, data was collected on major export supply chains to provide approximate annual total Wagyu beef outputs. These were estimated at 24,000 tonnes for the FY2017, suggesting that the survey captured approximately 70% of total meat sales. The total predicted from the production model was 23,777 tonnes for FY2017, which increased to 74,703 tonnes by 2022. This amounts to an average increase in production of 21% per year for the 6 years to 2022. The total production predicted by the updated model is significantly less than the original model (30% annual growth per year) due to lower than predicted growth in supply over the period 2014 to 2016. The proportion of fullblood/purebred to Crossbred (XB) for export and domestic markets is shown in the next figure. The following figure provides the current estimated and forecast fullblood/purebred numbers vs Crossbred joining numbers for the 2017 AWA production model out to 2022. As a proportion of total Wagyu numbers, FB/PB joinings are approximately 30% of the estimated National total. The Australian Wagyu Association sincerely thanks the more than 200 members who took the time to respond to this survey and provide the Australian Wagyu Industry with the best source of information relating to our current situation and the projected future scenario for our industry. The generosity in providing your time and in providing you business data is greatly appreciated. Thank you to the staff from Meat and Livestock Australiaâ&#x20AC;&#x2122;s Communication, Marketing and Industry Insights team for supporting and assisting the AWA in the conduct of the survey and in the analysis of the data. 54
THE AUSTRALIAN WAGYU UPDATE
TOTAL PRODUCTION ESTIMATES (TONNES)
tonnes 30,000 25,000
ORIGINAL MODEL UPDATE MODEL
20,000 15,000 10,000 5,000 0
2014
2015
2016
2017
2018
2019
2020
2021
2022
TOTAL PRODUCTION ESTIMATES (TONNES)
80,000 70,000 60,000
DOMESTIC BEEF PRODUCTION (TONNES) - FB/PB DOMESTIC BEEF PRODUCTION (TONNES) - XB EXPORT BEEF PRODUCTION (TONNES) - FB/PB EXPORT BEEF PRODUCTION (TONNES) - FB/PB
50,000 40,000 30,000 20,000 10,000 0
2014
2015
2016
2017
2018
2019
2020
2021
2022
FB/PB, XB AND TOTAL WAGYU JOININGS 900,000
TOTAL FB/PB XB
800,000 700,000 600,000 500,000 400,000 300,000 200,000 100,000 0
2011
2012
2013
2014
2015
2016
2017 2018
2019
2020
2021
2022
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