pg 1
FALL/WINTER 2014
It’s About You. Life is an evolution, building on the past and adapting for the future. At Semex, our vision is directed by what we see in our clients’ eyes. Genetics For Life is this evolution. It encompasses genetic solutions, how we will expand globally, our commitment to research & development, our training programs and most importantly developing long-lasting, profitable herds and lifelong partnerships. Genetics For Life is all about enhancing lives, and how we will feed the lives of tomorrow together.
pg 2
Beyond 6
A Game Changer pg 4
Seven Questions for Semex’s Director Global Human Resources
Seven Questions for Semex’s Director Global Human Resources pg 6
8
A Custom Approach to Genetic Selection that Works for Everyone
A Custom Approach to Genetic Selection that Works for Everyone pg 8 Immunity+™ Evidence Growing pg 11
A Game Changer
4
One Market Worlds Apart pg 16 Semex Working Beyond Borders pg 18
22
Results Show Genomax™ Success pg 24
Advanced Reproductive Management (ARM)
6 Results Show Genomax Success
24 18
Semex Working Beyond Borders
BEYOND BORDERS IS A MAGAZINE DESIGNED TO PROMOTE DAIRY GENETICS, TECHNOLOGY AND MANAGEMENT PUBLISHED BY SEMEX Comments or submissions to the editor should be forwarded to Brenda Lee-Turner, Semex, 130 Stone Road West, Guelph, Ontario, Canada N1G 3Z2. tel: 519-821-5060, fax: 519-821-7225; email: bturner@semex.com.
pg 3
“
W E’RE COMMITTED TO PROVIDING THE SOLUTIONS YOU NEED TO BE BOTH PROFITABLE AND SUCCESSFUL FOR GENERATIONS TO COME. WE BELIEVE THIS ENSURES GENETICS FOR LIFE.
”
pg 4
Paul Larmer, Semex Chief Executive Officer
A Game Changer At Semex we developed our own corporate Mission. This Mission is to ‘Create value by developing and delivering innovative genetic solutions.’ This is something we take extremely seriously and over the past few years, we have been working continuously to produce revolutionary solutions that will positively impact our customers’ profitability. Introducing Semex ai24™, SemexWorks™ and Immunity+™ have been key to the evolving solutions offered to our clients worldwide. And, while genetics continues to be our core business, these solutions will add value to your operation each and every time we step out of the truck.
Lowering drug costs and increasing productivity through healthier calves and cows is a goal of all producers everywhere. Continued research on data retrieved from USA dairy herds utilizing Immunity+ sires shows an 8% reduction in disease incidence when compared to those cattle sired by non-Immunity+ sires. The largest difference is observed in incidence of mastitis and calf pneumonia, two economically significant diseases. While the advances in just one generation are exciting, the impact will be repeated and compounded with each subsequent generation of Immunity+ sired daughters, making this a true game changer on the dairy.
Recognizing our clients’ need to breed a healthier, disease resistant herd was something we long ago saw as a paramount need on the farm. And, genetic solution for this need works for any producer, anywhere in the world, under any management system, whether he milks 50, 500, 5000 or 50,000 cows.
The sales and recognition this new technology and product receives increases daily. Just last Fall, Immunity+ was awarded as an Innovative Product of the Year by Dairy Herd Management at World Dairy Expo. This was a very definite endorsement from the dairy industry that this technology is truly unique, valuable and a game changer.
In 2013, decades of research and hard work in collaboration with the University of Guelph resulted in the launch of Immunity+ sires worldwide. The acceptance of the science and technology behind this specialized line-up of sires has been tremendous. Worldwide, dairymen are requesting these sires because they know, just like we know, that it makes sense. Some cows and cow families just do not get sick. They go virtually unnoticed in the herd, doing their job day in and day out.
For us, however, bringing the Immunity+ line-up to the farm gate is simply the best possible way we can live our Mission. With record sales each of the past four successive years and on track for our fifth, we might be tempted to be satisfied and complacent. We know this will never happen, because our corporate Vision states ‘We demand the best of ourselves... Our company… And what we do for our customers.’ Earning and keeping your trust is important to us. Introducing and delivering valuable solutions, such as Immunity+, to your dairy is not just a ‘nice to do,’ it is a critical part of our Vision, Mission and Core Values each and every day.
pg 5
281 corporate employees
360 global subsidiary/joint venture
Seven Questions for Semex’s Director Global Human Resources
employees
WE BELIEVE…
Karen Twaddle Semex’s Director Global
PEOPLE
Human Resources
are the cornerstone of our success
PASSION fuels our results
LEADERSHIP creates growth and opportunities
TRANSPARENCY builds clarity, encourages ideas and questions t he status quo
The Human Resources function is a strategic partner to the business managers and is responsible for implementing and integrating Human Resource (HR) programs across the organization, including Semex global subsidiaries. In my role, I translate business needs into integrated human resource solutions that align employee capability, organizational development and resource management. It sounds a bit text book, but essentially HR supports the organization in achieving our business objectives by ensuring we have the environment and programs that attract, motivate and retain the best people.
1. WHAT HAS CHANGED AT SEMEX SINCE YOU CAME ON BOARD IN 2010? The short answer is a lot! When I joined Semex, we were very much a semen sales and marketing company servicing global markets. The number of employees in Canada was a small fraction of our global employee base (approximately 60 employees). The past four years has been a steady transition to a global genetic solutions company. Today, our scope of responsibility has expanded to include all domestic and global animal housing and product production functions. Most recently, we have integrated our Research & Development (R&D) division and our embryo business to increase alignment and efficiency. Globally we have increased our presence in new markets through strategic investments and partnerships. The changes over the past four years have increased our scope of responsibility, expanded the size of our organization and our employee demographics. Our programs continue to evolve to align with our changing organization.
pg 6
2. HOW MANY EMPLOYEES DOES SEMEX HAVE? WHERE ARE THEY ALL LOCATED? Our corporate employee group is about 280 employees, working for the most part in Ontario (Guelph and Kemptville) and Quebec (SaintHyacinthe & Ste. Madeleine). Within our global subsidiaries we have about 360 employees.
3. HOW CHALLENGING IS IT TO HAVE EMPLOYEES SPREAD AROUND THE WORLD? From my perspective the challenge always comes in communication. We all know that face-to-face communication is best, but geographic spread presents its challenges. We continue to work on this to ensure all employees get the information they need, when they need it. We have a great group of managers, both in Canada and globally, and we rely on this group to ensure communication remains a focus.
4. WHERE DID SEMEX’S CORE VALUES COME FROM AND WHAT DO THEY MEAN TO THE EMPLOYEES? We’re very proud of our Core Values. Particularly because these values were developed internally by a group of employees representing all areas of our business, including participation from our Board of Directors. Having had the pleasure of participating in this project, it was wonderful to witness the enthusiastic discussions regarding what values were truly core to our culture. The hope is that the Core Values, along with our Vision and Mission that were developed at the same time, act as a guide to employees and our organizational culture.
5. WHAT DOES THIS MEAN TO A CUSTOMER?
We have a culture that is focused on people who are passionate about the work they do and how they do it. If I was a business owner, I think I would want to partner with a company that shares these same traits.
6. S EMEX IS GROWING BY LEAPS AND BOUNDS… WHAT IS THE COMMON THREAD AT ALL SEMEX OPERATIONS? At the risk of repeating myself, the passion of our people. Whether they grew up in the agriculture industry or not, Semex’s employees are committed to doing their best.
7. WHAT ARE THE JOBS OF THE FUTURE AT SEMEX? If only I had a crystal ball … If we look at how much Semex has changed in the last four years, along with the changes within our industry and the growing complexity of our new markets, the jobs of the future at Semex will continue to evolve. It is a given that genomics will continue to advance and change our business. Through continued research we are learning more and more about the impact of animal care on our genetic products, along with growing modernization in our farms. Our laboratories are increasing in technological demands and greater focus on the biology of our products. As R&D grows in alignment with our production functions, the opportunities in this area are vast. We are driving technological change in the tools we are developing for our sales teams and expanding their professional skills as genetic consultants. Our markets are expanding, and with this expansion comes new challenges for health requirements. In all facets of our business we continue to look for ways we can do things better … Do things best. All of this will shape the roles of the future at Semex.
Our Core Values were written for our employees, but I think they do have relevance to our customers. The values articulate our company culture …
pg 7
SEMEXWORKS IN THE US
AUSTRALIA USA NEW ZEALAND PERU ARGENTINA CANADA BRAZIL FINLAND ITALY BELGIUM NETHERLANDS UK GERMANY AND MANY MORE TO COME
SEMEXWORKS IN THE UK
pg 8
SEMEXWORKS IN AUSTRALIA
Ben Versteeg, Semex Sales & Product Specialist
A Custom Approach to Genetic Selection that Works for Everyone Most often, dairymen select genetics based on standard evaluations such as TPI, LPI, JPI or Net Merit. These evaluations rank bulls according to total merit and economic values across an entire population. Applying these standard evaluations to a single dairy can be an ineffective process, making genetic purchasing decisions difficult and confusing. And, often times dairymen are left wondering not only which bulls make the most sense on their dairies, but also which bulls at what price will net them the biggest return on investment. Most people agree that the one-size-fits-all approach to genetic selection actually fits no one. The need to simplify and customize the genetic selection process has never been greater, and has never been possible until Semex introduced its new client-driven program, SemexWorks™. SemexWorks is an easy-to-use, touch-based, tablet software that truly puts the dairyman in the driver’s seat, selecting the traits, strategies and economic parameters that are important to him. Unlike traditional genetic evaluation tools and indexes, SemexWorks has been designed to take a different approach to sire selection by allowing the customer to create a personalized selection formula that fits their unique specifications. To further refine their selection index dairyman can identify key traits, and reproductive or genetic solutions such as Repromax™, Immunity+™, Sexxed™ semen or even beef bulls. SemexWorks’ flexibility also encourages users to segment their herd, allowing for unique strategies and solutions to be used on different portions of the herd. Once traits are identified and emphasized, bulls are each given a client index value. This number is based on the areas the dairyman has chosen to emphasize, the weightings he places on traits and the herd segmentation. This provides the client with a list of bulls that is easy to navigate, and is ranked on the individual breeding goals set for each herd segment.
Your Dairy’s Data Every herd faces unique circumstances, and therefore needs to address different issues on their dairy in order to realize economic gain. By integrating real client data into the SemexWorks economic formulas, dairymen can see the genetic traits that will have the greatest economic impact on their dairy and to their bottom line. The ability to analyze the economic value that each sire brings to a specific herd is an industry first, and allows the dairyman to delve further into a bull’s economic merit before a purchase decision is made. This allows SemexWorks to give valuable Return on Investment (ROI) analysis. By definition, ROI weighs an investment’s ratio of cost versus benefits and is a common form of analysis across many industries including on-farm purchases of feed, health and infrastructure. However, the dairy genetics industry has been cautious to apply ROI to the long-term investment in genetics. With the introduction of SemexWorks, Semex clients can now analyze the ROI of the package of sires being considered, ensuring they’re selecting the bulls that will bring them the greatest value, in line with their goals and needs. SemexWorks is another example of Semex’s commitment to bring tools to our clients that are as individualized as they are. SemexWorks focuses on the unique needs and economics on the dairy, calculating pay back on the genetics. This simplifies the buying decision process, and gives dairymen confidence in their genetics. The end result is that the genetics they select are precisely focused on helping them achieve their specific goals. At Semex we believe this will keep our clients ‘A Step Ahead’ and is certainly Genetics for Life.
pg 9
“I’ve been amazed at how useful it is for my clients. It lets them think about their objectives and requirements. For those working to a strict budget the program’s ability to balance maximum genetic gain to cost whilst giving as high a return on the investment as possible is great.” Andrew Axford, Semex UK Southern Regional Sales Manager
“For me the main advantage of this tool, especially with the growing utilization of genomics, is it narrows down the group of young genomic bulls that best fit the client’s needs and goals.” Flavio Junqueira, Semex Brazil Progressive Manager
SEMEXWORKS IN THE US
“
SEMEXWORKS ALLOWS MY CUSTOMERS TO MAKE THE BEST GENETIC DECISIONS BASED OFF THEIR OWN ECONOMIC NUMBERS. IT’S THE BEST AND EASIEST WAY TO MAKE SURE WE ARE MEETING THEIR GOALS.
”
Jessica Lundgren, Semex District Sales Representative, Eastern Wisconsin
pg 10
GENETICS FOR LIFE IS ALL ABOUT ENHANCING LIVES & HOW WE WILL FEED THE LIVES OF TOMORROW TOGETHER
6 SIRE AND PRODUCTION FACILITIES ON
4 CONTINENTS
$10+ MILLION INVESTED IN INDUSTRY INFRASTRUCTURE & DATA COLLECTION EVERY YEAR
OVER 12 MILLION
INDUSTRY’S ONLY SOURCE
DOSES SOLD
IMMUNITY+ SIRES
FOR
IN 2013
pg 11
5,400 SIRES GENOMICALLY TESTED LAST YEAR
INTO TOMORROW TOGETHER
PATENTED TECHNOLOGY EXCLUSIVE TO SEMEX
Jay Shannon, Semex Global Dairy Solutions Manager
Immunity+™ Evidence Growing New technologies are always coming along that claim a host of benefits. Seldom, however, do such technologies deliver on or surpass their original claims. Immunity+ appears to be one of those special innovations that does indeed meet or exceed original expectations. There is a lot of on-going research in the immune response field, and in each case, the findings further validate many benefits of this outstanding new technology: • Starting with the expectation of 48% reduction in disease, an analysis of three large dairies has shown a disease reduction in daughters by Immunity+ sires that is at least 8% or more with most notable reductions in mastitis and pneumonia • Using Semex bulls and daughters tested for immune response, a study by Emam et al (August 2014) validated the transmission of immune response to the progeny from their sires • Crispi-Thompson et al (August 2014) did an association study between the genomic markers on the 50K panel and immune response for a group of Semex bulls. A significant peak on chromosome 23 was found confirming previous results from the association studies using cows
• The same research project calculated immune response heritability and indicated the actual heritability could be even higher than the original estimate of 25% • Preliminary findings by Cartwright et al (May 2014) suggest high immune responders have significantly less digital dermatitis (footwarts or hairy heel warts) than average. A relationship was previously hypothesized, however it had not been demonstrated until recently • Fleming et al (August 2014) showed how high immune cows have significantly more total immunoglobulin and betalactoglobulin in their colostrum. These cows are expected to provide superior passive immunity to their calves through this enhanced colostrum. The paper suggests the future possibility of innovative ingredients for functional foods, enhancing both human and animal health High immune response technology has shown the potential to be one of the more significant innovations in the genetics industry, having a profound effect on each dairy’s selection strategy to improve overall animal health.
pg 12
High immunity passed from parent to progeny at rates exceeding all health/fitness traits
25
%
heritable One mating to an Immunity+ sire provides at least
4-8
%
reduction in disease MASTITIS
PNEUMONIA METRITIS
RETAINED PLACENTA
Preliminary studies indicate resistance to other important diseases DIGITAL DERMATITIS
JOHNE’S DISEASE
25 DISEASE % heritable 25 DAUGHTERS HAVE: 10 heritable
parent to progeny at rates exceeding all health/fitness traits
High immune cows have significantly more total
immunoglobulin and betalactoglobulin in colostrum
FOR
Fleming et al 2014.
F M
Greater Response to Only the top LESS Commercial Vaccines
48 Higher Quality Colostrum %
Wagter et al 2000.
% EACH FOR 4
FIRST MATING bulls tested qualify
SUBS T
of Immunity+ sired sons also qualify as Immunity+ (Compared to only 11% of sonsHigh from othercows bulls) immune have significantly more total
Higher High Better % 4-8 immunoglobulin and betalactoglobulin in colostrum. Fertility Immunity Health x2
DAUGHTERS HAVE: Fleming et al 2014.
Higher Quality Colostrum Higher Greater tosemen fertility High immune cows have significantlyResponse more total immunoglobulin and betalactoglobulin in colostrum. +0.9 higher SCR than other bulls Commercial Vaccines USDA/CDCB proof data, Apri Fleming et al 2014. Wagter et al 2000.
Immunity+ daughters produce better quality colostrum
BROA Greater Response to 3.7% higher 56-day DE Higher High Better non-return Immunity+ rates as cows Commercial Vaccines
Immunity+ daughters have greater response to commercial Wagter et al 2000. vaccines
Immunity
MAST
Immunity+ sires have higher semen fertility (+0.9 higher SCR than other bulls) Immunity+ sired daughters have higher fertility (3.7% higher 56-day nonreturn rates as cows)
agains CDN Fertility Measures by Sire,bact April
2013 DHM Innovation Fertility Award recipient
Health
MASTITIS
Higher semen Higherfertility High Better +0.9 higher SCR than other bulls Fertility Immunity Health Genetic correlation between immune
METRITIS
S
USDA/CDCB proof data, April 2014.
More resistance IMMUNE RESPONSE HAS PREL infectious dig Higher semen fertility 3.7%+0.5 higher 56-day - +0.7 GENETIC CORRELATION dermat Cartwright +0.9 higher SCRnon-return than other bulls rates as cows STUDIE IMMUNITY+ WITH HEALTH/FITNESS TRAITS* et al USDA/CDCB proof data, April 2014.
response and health traits
0.50 - 0.70
IS
J. Chesnais, August 2014.
CDN Fertility Measures by Sire, April 2014.
PL DPR SCS DCE
DIGITAL DERMATITI
GENETICS FOR IMMUNE RESPONSE HAS LIFE
3.7% higher 56-day non-return rates as cows Immunity+ Non-Immunity+ Difference
BULLS THAT WERE IMMUNE RESPONSE TESTED FROM JULY 2013 - JUNE 2014 Trait
*Productive Life, SCS an
More resistance to infectious digital dermatitis
Cartwright et al 2014.
CDN Fertility Measures by Sire, April 2014. (67 bulls) (560 bulls) +4.8 +3.0 +1.8 +1.0 +0.1 +0.9 +0.5 +0.7 GENETIC CORRELATION 2.72 2.82 -0.10 (favourable) TRAITS* 5.4% WITH HEALTH/FITNESS 6.0% -0.6% (favourable)
IMMUNE RESPONSE HAS +0.5 - +0.7 GENETIC CORRELATION WITH HEALTH/FITNESS TRAITS* pg 13
*Productive Life, SCS and DPR.
A BETTER, MORE NATURAL WAY TO FIGHT DISEASE.
pg 14
pg 15
Mike North, President, Commodity Risk Management Group
One Market Worlds Apart Over the course of the last three months, US producers have enjoyed strong Class III and Class IV markets for their milk, as butter and cheese have visited old highs or reached for new ones. This would lead one to believe that global product inventories are tight and buyers are willing to chase the market to what seems like unending limits. But is that necessarily the case? Taking a few steps back from the domestic market, one will quickly realize that our domestic situation does not define what is true elsewhere on the planet.
CME SPOT CALL BUTTER VS. GDT BUTTER AT 80% FAT $3.00 $2.50 $2.00 $1.50 $1.00 $.50 $0 1-7-14
2-7-14
3-7-14
4-7-14
CME SPOT BUTTER CALL
5-7-14
6-7-14
7-7-14
8-7-14
GDT PRICE CORRECTED TO 80% FAT
for sales of butter and cheddar. Foreign buyers will simply find sources with prices much more agreeable to them. Additionally, this very same price separation invites imports. If you could sell butter for twice the price as what is available elsewhere, wouldn’t you explore the opportunity? Secondly, the geopolitical front has added a new element of consideration: the Russian/Ukrainian conflict. With Russia retaliating against countries that have levied sanctions against them, more European butter will be looking for a home this fall. Thirdly, the current price environment has been rather inviting SPOT CALL CHEDDARSince BLOCKSthe VS.beginning GDT CHEDDERof the year, to producersCME looking to expand. $3.00 producers have added an average of 10,000 cows per month to bring the $2.50 national herd to 9.272 million head, just 12,000 shy $2.00 summer peak. Milk production continues to grow of the 2008 in tandem$1.50 with the herd expansion, with July up 4% over 2013. These will$1.00 be the dominant head winds for the milk market as we enter into $.50 2015. Speaking of$0 the milk market, it too is operating in two different 1-7-14 2-7-14 3-7-14 4-7-14 5-7-14 6-7-14 7-7-14 8-7-14 worlds. There is an old expression that speaks to the cure CME SPOT CALL CHEDDER BLOCKS
GDT CHEDDAR
BUTTER AT 80% FAT
CME SPOT CALL BUTTER VS. GDT BUTTER AT 80% FAT US butter prices at the beginning of September were trading for $2.8425/lb (the Chicago Mercantile Exchange (CME) spot butter call), a new record. Corrected to 80% fat, the Global Dairy Trade (GDT), a benchmark for world pricing, had butter trading for US$1.22/lb. (See Chart: CME Spot Call Butter vs GDT Butter at 80% Fat).
$3.00 $2.50 $2.00 $1.50 $1.00 $.50 $0 1-7-14
This raises the obvious question… Why such a difference? The 2-7-14 lies 3-7-14 5-7-14 6-7-14 7-7-142013.8-7-14 answer in the 4-7-14 New Zealand drought of Domestic CME SPOT BUTTERgave CALL way to other GDT PRICEproducts CORRECTED TOlike 80% FAT butter production powders and BUTTER AT 80% FAT cheese that showed greater profitability. Together with greater demand for butter, stocks tightened to the lowest levels in more than a decade. The price response has been expected in its direction, but very unexpected in its scope. Butter is not alone in this disparity, with cheese showing many of the same characteristics. Again, looking at the spread between CME spot pricing for block cheddar and the GDT auction pricing (See Chart), domestic cheese pricing is also in a world of its own. With exports growing, inventory has tightened from last year considerably. And of late, buyers have scrambled for holiday needs on a more advanced schedule and with a much greater determination to secure product. The question then becomes ‘Can this last?’ In the short run, it is possible. Longer term, we have several issues to reconcile. First, current prices make the United States grossly non-competitive
CME SPOT CALL CHEDDAR BLOCKS VS. GDT CHEDDER $3.00 $2.50 $2.00 $1.50 $1.00 $.50 $0 1-7-14
2-7-14
3-7-14
4-7-14
5-7-14
6-7-14
CME SPOT CALL CHEDDER BLOCKS
7-7-14
8-7-14
GDT CHEDDAR
for high prices being high prices. To that end, the milk market has built a stark separation between the world as it is in 2014 and the world that is expected in 2015. A quick view of milk pricing reveals that current values of $24/cwt Class III and $23/cwt Class IV fades into $18/cwt as we start the new year. There exists an expectation that all of the previously mentioned headwinds will play out in the coming months. This presents a problem for producers who have become accustomed to the elevated pricing experienced throughout the year. It becomes difficult to mentally accept pricing that is $5-6/cwt less than current values.
pg 16
This is where a margin focus becomes critical. A holistic view of both milk and feed prices reveals that for many despite the lower value currently assigned to milk, margins are still quite favorable to profitability. This is when producers should be actively pursuing strategies to capture that margin. Better yet, consider strategies that give you flexibility to accept current margin offerings while leaving room for greater opportunity later. Options present such an offering and should be a part of your conversation with your risk management advisor. While, current values may be less than many would like to see, they are still only futures prices. By no means does the market guarantee that these values will still be available when the calendar is turned to the month in question. The bottom line‌ Start addressing the market before this unprecedented separation between US and world markets is reconciled.
The information contained herein is the opinion of the writer or was obtained from sources cited herein. It should be noted that the impact on market prices due to seasonal or market cycles and current news events may be reflected in market prices. Trading in futures products entails significant risks of loss which must be understood prior to trading and may not be appropriate for all investors.
pg 17
SEMEX WORKING BEYOND BORDERS There is no doubt that today’s marketplace is global. At Semex, we live this each day. Borders have melted away and we’re spending time watching, listening and learning from our customers around the world every day. What we’re hearing from these folks is guiding us and helping us grow our global footprint. Developing these lifelong partnerships and offering clients everywhere the genetic solutions that will develop long-lasting and profitable herds worldwide is Genetics for Life. It’s our promise to each other and it’s how, together, we will feed the lives of tomorrow together. Standing shoulder-to-shoulder with our clients in over 100 countries worldwide is working, and has resulted in many successes in both developing and mature markets alike. Two successes in the mature markets are found on opposite sides of the planet… Italy and Mexico.
pg 18
Brenda Lee-Turner, Semex Marketing Communications Specialist
45,000 DAIRY FARMS FEED PRICES ARE +18% TO WORLD MARKET SABBIONA FARM IS HOME TO 105 EX COWS
As one of the world’s top cheese producing and exporting countries, Italy is a top player in the world’s dairy industry.
ITALY IS #11 IN WORLD MILK PRODUCTION Source: IFCN 2012
1 MILLION TONS OF CHEESE ANNUALLY Italy produces 1 million tons of cheese annually with mozzarella topping the list by volume. Seventy-five percent of Italian milk is produced in the northern districts of Italy.
One of the biggest and most important farms in Italy is the Sabbiona Farm in Lodi.
SABBIONA FARM Owned by Francesco and Ireneo Ciserani, Sabbiona is home to 550 Holstein cows (470 milking), with an impressive 105 scored EX, many of which have been winners at various Italian agricultural fairs. Founded in 1973, Sabbiona has been working with Semex for many years, having used some great 200 code bulls including famous names such as Goldwyn, Outside, September Storm, Lee, Rudolph, Lheros and Stormatic.
Continued on page 16
pg 19
“For our own farm, and for other Italian herds, the key strength of a Semex-sired cow is her evolution over the years.” “Calving after calving she offers the farmer not only a great animal in the prime of her life, but also a long-living, reliable and more profitable animal.”
No doubt the Sabbiona cows are profitable posting an impressive
11,000 KG/25,100 LBS HERD AVERAGE WITH A HIGH 3.7% FAT AND 3.4% PROTEIN.
Francesco Ciserani, Sabbiona
This belief in the profitability of the Semex-sired cow continues today with more recent sires being used including Windbrook, 0200HO05575 Gillette Jordan, 0200HO05592 Crackholm Fever, Gen-I-Beq Topside, 0200HO05588 Comestar Lauthority, 0200HO02137 Pine-Tree Sid and 0200HO05630 Comestar Lavanguard.
LOOKING TOWARDS THE FUTURE AND SEEING GENOMICS AS A VALUABLE TOOL TO BE USED WITHIN THE HERD, SABBIONA HAS INCREASED ITS GENOMIC YOUNG SIRE USAGE TO 80%. Chosen based on high GLPI, GTPI, Milk, Conformation and Mammary Systems with an eye on cow families, Semex’s Genomax™ sires are making an impact at Sabbiona. Genomax sires used within the herd include 0200HO03753 Marbri Facebook (now proven), 0200HO07450 Amighetti Numero Uno, 0200HO03809 Velthuis Let It Snow, 0200HO06480 Val-Bisson Doorman, 0200HO06450 Luck-E Adonis-Red, 0200HO02770 Sully-Hart Meridian, 0200HO02692 Gibbs-I Claynook Dude, 0200HO03950 Richmond-FD El Bombero and 0200HO03967 Gillette Speaker.
A true partner at Sabbiona, Semex hosted an Open Day in June 2014 in which over 400 people from all over Europe attended to see, learn and visit with the Ciseranis and to see this great herd first hand. “Besides the friendship and the collaboration that’s grown over the years, what I like the most about working with Semex is the way they present the information,” says Francesco Ciserani. “It’s always clear and up to date. It’s how we’ve created this life-long partnership and how we’re developing towards the future.” “The greatest thing about working with the Ciserani family is to see their passion for their cows, and how they pass this passion on to you,” says José Alfonso Ahedo, Director, Semex Italia. “They are excellent cow men and manage a great farm with amazing cows that are outstanding performers. They are hard-working and always challenge us, but never more than they challenge themselves! Having friends and customers like this makes Semex Italia a better, stronger company.”
This is Genetics for Life in Italy.
pg 20
The Mexican dairy economy is fuelled by an increasing demand for dairy products. With this demand comes the need to increase efficiency in dairying operations.
134,000 DAIRY FARMS MILK PRODUCTION GROWTH IS 1.2%/YEAR # 16 IN WORLD MILK PRODUCTION FEED PRICES ARE -2% TO WORLD MARKET Source: IFCN 2012
One of the operations leading the way in Mexico is Semex partner herd Fuentezuelas Farm in Querétaro, Bajio, located in central Mexico. A leading milk-producing region in Mexico, Queretaro is widely known for its dairy products.
FUENTEZUELAS FARM As a fourth generation operation founded in 1954, the Fuentezuelas Farm is owned by J. Ignacio Cervantes G., and is home to over 1000 Holstein cows that are milked three times a day in a new freestall facility that averages 12,076 kgs/26,623 lbs with a 3.55% F and 3.15% P. Herd health and reproductive performance is key to profitability on this dairy that boasts an impressive average 144 days open and 65 days to first service.
“We like functional cows with good feet & legs, good bodies and great udders.” “Semex cows are trouble-free and don’t loose condition after calving, making their lactations very persistent and strong. We feel that they both produce well and look great!” J. Ignacio Cervantes G., Fuentezuelas Farm Continued on page 18
pg 21
Knowing what he wanted his herd to look like, J. Ignacio Cervantes G. turned to Semex in 1999 and hasn’t looked back, using Semex’s mating program, proven sires, Sexxed™ and Genomax™ young sires. In fact, 80% of the herd is bred to Semex Genomax bulls. J. Ignacio Cervantes G.’s selection criteria for genomic young sires is much like his selection for proven sires… 70% genomic/proof numbers and 30% reliant on deep cow families. In use on the herd are popular bulls such as: 0200HO03753 Marbri Facebook; 0200HO05592 Crackholm Fever; 0200HO00560 Monument Impression; 0200HO00528 Sildahl Jett Air; 0200HO05575 Gillette Jordan; 0200HO05630 Comestar Lavanguard; 0200HO05549 Regancrest Reginald; 0200HO05567 R-E-W Seaver; 0200HO02137 Pine-Tree Sid; and 0200HO02106 Stantons Steady. Genomax sires include: 0200HO02692 Gibbs-I Claynook Dude; 0200HO03845 Gen-I-Beq Sammy; 0200HO03855 Ladys-Manor Savior; 0200HO03913 Croteau Lesperron Unix; 0200HO02920 Stantons Campus; 0200HO03829 JK Eder-I Control; and 0200HO03875 Stantons Elaborate.
WHEN IMMUNITY+™ WAS INTRODUCED ON THE DAIRY J. IGNACIO CERVANTES G. DID NOT HESITATE TO PUT IT TO WORK. “I trust Semex and their technologies. I know that they’re well researched and that there’s information to back up this new technology. I can’t wait to see my Immunity+ calves on the ground very soon!” “My Semex representative knows his stuff! He brings solutions to my farm, he’s interested in our performance and profitability, but most importantly he’s not selling us something… He’s collaborating with us.” J. Ignacio Cervantes G., Fuentezuelas Farm In 2013, Semex and Fuentezuelas signed an agreement ensuring a very successful future in which Fuentezuelas is a Semex Elite Farm, hosting Semex customers and representatives to see the results of Semex’s product and services.
This is Genetics for Life in Mexico. Ana Sofia and Iñaki Cervantes
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A FIRST OF ITS KIND, SEMEXWORKS™ WILL CHANGE THE WAY YOU DO BUSINESS.
IT’S EASY • User friendly touch screens • Simple step-by-step process • Saves time
IT’S RIGHT FOR YOU • See Return on Investment • View a Proposal Snapshot • Results are instantaneous
IT’S FLEXIBLE • Match genetics to your needs • Be confident that your selections accurately meet your needs.
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Pierre Laliberté, Semex Senior Vice President, Genetics & Research
Results Show Genomax Success Genomax program launched in
2008
Over
5000 bulls genomic tested in 2014
Numero Uno is the sire of
15% of top 1000 GTPI females worldwide
30 countries have already purchased Doorman semen
Semex has been involved with DNA research since the 1980’s, and although these projects were more fundamental and not too specific, we made sure we were keeping semen on all bulls sampled in case one day we would need DNA material for research. In the late 1990’s there was an interesting project on genetic markers, and an important project conducted in collaboration between Semex and Agriculture Canada called ‘Daughter Design.’ This project collected the DNA from hundreds of females by the top proven sires of the time including Rudolph, Storm and a few others. While nothing was found to be accurate enough to apply directly to sire selection, it was an excellent way to get familiar with what we would call later ‘genomics.’
impressive number of calves, mostly before they even entered a milking line.
Genomic selection, as we know it today, is the result of a large research project conducted by the United States Department of Agriculture in the mid 2000’s. This project utilized new technologies to look at DNA differences between an individual and thousands of proven bulls. In 2008 it was used to increase an animal’s Parent Average (PA) accuracy by a substantial percentage, and dairy cattle selection would never be the same.
Now, six years into the Genomax program, it is a good time to reflect and to evaluate if our expectations have been met. And, in fact the early Genomax bulls are now proven, and at Semex we are very pleased with the results. Although not all bulls offered through Genomax have become proven elite sires (similar to bulls in a progeny proven program), several of them are still considered elite for their age:
Even though in the beginning genomics was mainly used to eliminate those bulls that had very little chance of being desirable, it quickly became a tool both A.I. and breeders alike used to make rapid genetic progress. Higher genomic young bulls were used extensively as sire of sons, and due to IVF (in vitro fertilization) technologies, high-ranking young heifers were able to produce an
Already Proven
Genomics has also brought major changes to the way producers choose their mating sires. Until 2009, dairymen were either using young sires as part of a sampling program or proven sires. As the reliability of young sires became substantially higher, breeders began to incorporate more and more genomic young sires into their own breeding programs. In October 2008 Semex launched our Genomax™ lineup, offering our clients worldwide access to the best genomic young sires in the industry. As the quality and quantity of these young bulls continued to rapidly improve, so did the demand!
0200HO05929 Gen-I-Beq Brawler Brawler was very popular when he was first offered as a Genomax sire in early 2010 and has remained a top-seller since his first official proof in August 2012. In fact, he’s so popular that he had over 1500 daughters in his Canadian evaluation in April 2014 at just six years of age! Continued on page 22
pg 24
“
G ENOMAX BULLS ARE NOW PROVEN, AND AT SEMEX WE ARE PLEASED WITH THE RESULTS.
”
pg 25
0200HO00528 Sildahl Jett Air Jett Air was one of highest genomic bulls for his age. Thanks to his high genomic numbers and attractive pedigree, he was very popular in a few countries. Proven in both Canada and the US, he remains one of the most solid proven bulls for Fat Yield, overall Conformation and Calving Ease. 0200HO02600 O-Bee Krusader He was immediately popular, and as a Genomax sire was sold on five different continents. Thanks to his solid type proof and good calving ease he remains extremely popular as a proven sire.
Newly Proven Sires Now in August 2014, these very popular Genomax bulls from 2011 have made their debut as proven sires: 0200HO06156 Larcrest Contrast: Thanks to great type and a huge fat percentage, Contrast now ranks among the top Semex sires. 0200HO06267 Gen-I-Beq Lavaman: Lavaman is the best protein percentage sire at Semex and is also an exceptional calving ease sire. He made an impressive start in UK as well, being # 3 proven bull for PLI in the August 2014 proof round.
L-R: WELCOME FACEBOOK PAULA GP-84-2YR-USA, WELCOME FACEBOOK PINTO G P-84-2YR-USA, WELCOME FACEBOOK PENTA VG-86-2YR-USA
0200HO03753 Marbri Facebook: Facebook was the #3 GTPI sire in December 2010, and now ranks #1 among all proven sires for TPI, #1 MACE LPI in Canada and #1 in Italy and Germany. He was quickly identified as a top sire by Semex’s Genetics Team, and was used extensively as a sire of sons. Semex sampled 17 sons, with 0200HO02870 Mr Lookout P Enforcer and 0200HO03877 Coyne-Farms Jabir being very popular Genomax sires as well as important sires of sons, ranking extremely high for GLPI and GTPI. Facebook’s tremendous production proof combined with a very solid type proof and his Immunity+™ status makes him one of the most popular proven bulls worldwide.
The Genomic Giant
The Type Specialist
When 0200HO07450 Amighetti Numero Uno had his first GTPI published in April 2011, he made a flamboyant debut as he was the first Holstein animal to ever be over +2600 GTPI. Not only was he the #1 bull, but he was more than 100 points ahead of the number two ranking bull, and remained #1 for 20 months, a record no bull has broken. As of April 2014 he had four, 13 and 21 daughters in Top 10, 50 and 100 GTPI respectively. Fifteen percent of top 1000 GTPI females worldwide are sired by Uno and many of his sons, including 0200HO10049 Rockymountain Lottomax, 0200HO03950 Richmond-FD El Bombero and 0200HO06551 Vieuxsaule Flame, are among the world’s highest ranking GTPI bulls and are creating the next generation of high genomic males and females. A certain bonus to this extensive resume is his ranking as an Immunity+ sire. With a 25% heritability, his daughters will be longer-lasting, trouble free cows that help build the profitable herds of the future.
As he became available at the end of 2012, 0200HO06480 Val-Bisson Doorman became extremely popular due to his exceptional genomics for type. Even though he will only be three years old in August, he already has sold semen to more than 30 countries worldwide! In fact, one of his daughters, Comestar Lamadona Doorman, won her class at both the Quebec and Wisconsin Spring Shows and she and other Doorman daughters will be ones to watch this fall. Even though not all of his sons are old enough to be in AI, he is the sire with the most sons among high type sires.
The industry is anxious to see his first official proof in December 2014, and reports so far on his first milking daughters are extremely positive. Stanton Farms in Ilderton, Ontario classified eight daughters from 22 to 26 months old, and they averaged 83 points. Now four years old, Numero Uno has developed as a very impressive individual in his own right in his Hungarian home.
pg 26
The Genomax Story The Genomax story is still relatively new and is being written every day. However, results so far are very encouraging. Just like in a traditional sampling program, not all Genomax sires will turn out to be great sires, but a good way to ensure success in any breeding program is by using multiple Genomax bulls. At Semex we will genotype over 5000 bulls in 2014, ensuring we can continue to supply our clients with the highest quality bulls possible. We think this is Genetics for Life.
INNOVATIVE REPRODUCTIVE RESEARCH AND DEVELOPMENT
GENERAL INQUIRES, MARKETING AND SERVICE PRICING:
BOVITEQ IS A DIVISION OF SEMEX
PAUL KRUEGER, SEMEX DIRECTOR SALES & BUSINESS DEVELOPMENT, USA 559-904-1692, PKRUEGER@SEMEX.COM
pg 27
PUT TIME ON YOUR SIDE™
C: 0 M: 69 Y: 100 K: 4
C: 0 M: 79 Y: 100 K: 11
C: 0 M: 46 Y: 73 K: 0
PMS: 173
“The best thing about the whole system has been the way we manage cows. Guys no longer have to watch 1,000 cows, they’re going after the cows that need attention.”
WE CAN’T PUT MORE HOURS IN YOUR DAY, BUT WE CAN PUT MORE TIME ON YOUR SIDE! As a herd manager you know how valuable your time is. You need time to feed cows, time to milk cows, and time to breed cows. Most importantly, though, you need that precious time away from the cows to do the things that mean the most in your life. Semex’s ai24™ whole herd management solution with both rumination monitoring and heat detection capabilities can’t put more hours in your day, but it can put more time on your side. It’s time for ai24™.
Loren Greenfield, Hilltop Dairy LLC Markesan, Wisconsin, 1,000 cows
(877) 545-ai24 | www.semex.com