EDITORIAL Marbling a Priority

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1 Wirruna Poll Hereford Stud (est. 1949) Wirruna News Inside this issue: Marbling a priority 1 EBV Talk Gene Markers & EBV's 3 Black Baldy Initiative 4 Sire Profile - WNAC26 5 Spring 2009 Sale 6 "We want to eat the taste fat not the waste fat" Dates for the Diary: Southern Beef Week Field Day Monday, 27th July, 2009 Muscle Field Day Tuesday, 4th August, 2009 Wirruna Spring Sale Wednesday, 26th August 2009 Wirruna Autumn Sale Thursday, 18th February, 2010 EDITORIAL Marbling a Priority It is nice to be inside the office writing this newsletter without the pressure of hungry stock beckoning to be fed their drought ration. An excellent June and continued wet and growing weather in July has significantly eased the pressure from what we have been dealt in the previous 10 months. Although we have only received half our usual rainfall for the six months up to the beginning of July, we are currently looking up and happy to get out of bed in the morning to greet the day. As for many in the south, we are looking for some significant catchup rain and winter and early spring is our ideal time for it. This editorial focuses on the importance of Marbling, which is the small flecks of fat scattered throughout the muscle. The other fat is subcutaneous fat that occurs between or outside the muscles. Marbling is important because it contributes to flavor, juiciness and tenderness. A large consumer study conducted by the Beef CRC confirmed that marbling improves eating quality, especially grilling cuts. Unfortunately, our lean beef campaigns of the 1980 s and 90 s convinced our domestic consumers that lean beef was best. Now, the research at WA s Curtain University has found marbling could assist in the prevention of health problems typically associated with fat consumption. Science now recognizes the marbling improves eating quality and can be better for you. My concern is that Hereford breeders may still be ignoring the science. Whilst all markets do not have a marbling requirement, the high value restaurant and food service industry and a growing number of our export markets (particularly Japan & Korea) pay a premium for marbled beef. At the quality end of the market, the demand for marbling will continue to grow, including at the domestic level. That is not to say that the market will want higher and higher levels of marbling; that will be in the niche market category. However, a minimum level of marbling is the far more likely proposition. Many processors for high value markets now look for a minimum marble score of 2. Grant Garey of the Cargill owned Jindalee feedlot, near Temora NSW, tells me of the very successful MSA graded Newsletter Winter 2009 product called Riverine Premium Beef. Cattle are grain fed for 112 days and a minimum marble score of 2 is required. Typically 40-50% of red cattle make this grade (which include Herefords). Angus cattle are, on average, meeting a far better compliance rate for this product. Clearly, this lack of compliance impacts on the demand for, and price of Hereford cattle. Grant has assured me that he is buying Hereford cattle, however, he is very focused on those producers with a proven track record of marbling on the kill sheets or can demonstrate that they have been actively selecting bulls for marbling. Animal health performance is also a key consideration for Cargill when purchasing feeder cattle. I strongly believe that commercial Hereford producers should aim to improve their propensity to marble in their herds and so make their cattle attractive to backgrounders, feedlotters and various MSA graded (meat quality focused) markets. The good news is that I do not think that improving the genetic level of marbling in the typical Hereford herd is a very difficult thing to do. It does take time, however, there are a number of factors that work in our favour. These are: There exists a large range of low to high marbling cattle in the Hereford breed. This means there is ample opportunity for selection. Marbling is a highly heritable trait (36%). This means that we can make progress relatively quickly. Unlike most traits, I view marbling as a free trait. Unlike growth traits, where too much growth has negative impacts on production traits such as fertility and calving ease. Selection for marbling comes at no cost to beef herd productivity. The price differential between high marbling and low marbling bulls is historically small. Measurements for marbling was added to the carcase scanning conducted at Wirruna in 1998 as part of validating the Intramuscular Fat EBV (IMF% EBV). Since that time the accuracy of the IMF% EBV has grown and the fact that a large range exists between animals that do and do not express marbling has been highlighted.

2 Page 2 EDITORIAL Marbling a Priority cont. All Wirruna sale bulls are individually ear notch tested negative as pestivirus carriers. They are also drenched and fully vaccinated for: Pinkeye (Piliguard) 7 in 1 Vibrio Pestivirus Attention Hereford Breeders Wirruna have undertaken some Horned/Polled DNA Analysis through IGENITY of sires & donor cows used in our program and some potential sires. This test is expensive (US$88/sample) and 96% accurate. Nevertheless, true-polled animals have obvious benefits, particularly for those wishing to 100% dehorn Hereford cows. Five homozygous polled bulls are offered in the upcoming Spring Sale on 26th August Details are provided in the catalogue due out in eary August. The following graph looks at the genetic progress of the Wirruna herd. IMF EBV Clearly, our program has been able to significantly improve marbling as part of a balanced approach in trait selection. This marbling is also well reflected in our own MSA carcase feedback performance. It is important to recognize, however, that the breed as a whole is making no progress in IMF%. Herefords Australia is also trying to make breeders far more aware of this important trait. As an illustration of this, a positive emphasis has recently been placed on marbling in the standard selection indexes that are calculated for the Hereford breed. The next graph shows the relationship between IMF% EBV and auction price of Bulls sold in the last 2 years of Wirruna bull sales. Note that based on historical data, there is a low correlation (R) between IMF EBV and sale price. In other words, the difference in price between high and low marbling genetics at Wirruna auctions is not significant. I suspect that this result would be consistent across the breed. 2.5 IMF EBV IMF% - Breed Trend - Genetic Progress - IMF EBV Wirruna Auction Price vs IMF EBV The Durham progeny test project for the Shorthorn breed was a good practical example of how well selection of high IMF% bulls improved the herd marble score over a single joining. Average marble score of progeny of top 10% ranked IMF bulls was Marble score 2.8, as opposed to 2.4 for the bottom 10% IMF ranked bulls. Another progeny trial of Angus Bulls over R = 0.23 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000 $9,000 $10,000 Auction Price Hereford cows showed marble score of 1.34 for progeny of high marbling Angus sires as opposed to 1.15 for Angus sires that were selected for high yield. Both these trials show an average of 16.5% improvement in the marbling performance of progeny. In high quality feeder markets, Hereford breeders should be looking to improve their average marble score to meet a marble score 2. This may involve lifting marble score by 1 point. The best tool to use is the IMF% EBV. If you use a bull battery with IMF% EBV s well above average, eg. top 10% bulls have an EBV of +0.4, I estimate it will take around 15 years to lift the average genetic marble score from 1.2 to 2.2 in 22 month old progeny. However it really depends upon the base you are starting from with your cow herd and current bull battery. Predicted Marble Score Target Marble Score Herd Marble Score 22 month old progeny This marble score graph shows where I have modeled a typical cow herd with a third of animals having a genetic marble score of 0.5, 1.25 and 2.0 respectively. The model assumes a 50% replacement rate of heifers and cows culled for age at 9 years. Assuming that joining top 10% marbling sires improves phenotypic marble score by 16.5% in progeny, the average marble score of 22 month old progeny is significantly improved. It would take 12 years to move the average marbling of progeny in this model herd to above marble score 2. Clearly, there are environmental factors that may also be considered. Nevertheless, genetics works and is cumulative over time. It just takes time! With higher grain prices shortening the time on feed and grass fed markets developing with a marbling requirement, even more pressure is being placed on the genetic marbling ability of cattle. Not forgetting the warnings about single trait selection, this issue of the link between marbling and eating quality and the fact that many Hereford breeders are turning a blind eye to the needs of high quality markets is important and requires a change in thinking.

3 Page 3 EDITORIAL Marbling a Priority cont. At this stage, the Hereford seedstock sector are not getting market signals to radically change their selection for marbling. Some leading seedstock herds and Herefords Australia do recognize the importance. Ultimately you as the commercial producer has to consider if marbling is an important trait for your herd into the future. I contend that marbling will add market flexibility and opportunity in the future with greater market access. Applying extra selection pressure on marbling is currently a low cost option. In the longer term, paying a premium for higher marbling genetics can be well justified. I hope it rains over your patch. Ian Locke "Seedstock Producers who see Gene Markers as their replacement tools for performance recording and Breedplan EBV's should think again." Key Points: Gene Marker technology is in its infancy It is proving very useful for identifying parentage, genetic diseases and simple type traits It is proving more and more complex for multi gene traits Current commercialised gene markers for production traits are of no or little value to seedstock producers Incorporation of marker information into the current Breedplan system will be best for industry Much more science and validation is needed Wirruna Website: EBV Talk Gene Markers & EBV's (This article has been compiled with the help of articles produced by Southern Beef Technology Services SBTS and include the views of Wirruna). The last thirty years has seen the constant development of Breedplan EBV s as the tool to measure various genetic traits in beef cattle. Although sometimes EBV s face a healthy level of skepticism, they have been backed by world class scientists, adopted in many countries around the world and validated in various progeny trials and by the Beef CRC. More recently, we have seen a wave of new genetic technologies being made available to producers. Referred to as Gene Markers, this new technology has been seen by many as a way to save cost on collecting performance data, instead the simple collection of tail hairs or blood to get DNA of a calf could yield the genetic blueprint of the calf for many important traits by identifying gene markers within that DNA. The advantages being that this is a direct measure of an animal s genetics and can be collected at a very early age in one single collection. As scientists have progressed along the gene marker technology path, the dream of a simple system of DNA collection to yield highly accurate production trait information has since faded. DNA technology for simple traits such as identifying genetic diseases, parent verification and identifying type traits (simple recessive/ dominant traits such as horn/poll, black/red coat colour) has been successful and is now utilized in our industry. However, DNA technology for production traits, like those measured by EBV s, has been far more complex than first envisaged. Unlike type traits that are controlled by simple genes with large effects, production traits are controlled by 100 s if not 1000 s of genes, each having a small effect. There are commercial companies that have released DNA tests for production traits including Pfizer (GeneStar & MVP s) which is available in Australia, Merial (IGENITY) and METAMORPHIX, both in the USA. There are also various Universities that offer the technology. Some of the production traits measured include carcass composition (muscle, fat, yield), carcase quality (marbling, tenderness), Fertility traits (calving ease, stayability, preg rate), Average daily gain, Feed efficiency and Docility. Many more DNA markers are being researched and no doubt many more large multi-national companies will enter the Australian market with these. As we have seen the initial commercialization of gene markers in Australia, an important step has been to independently assess if they are useful or otherwise. A project called SmartGene for Beef was established to look at the 4x tenderness, 4 x marbling & 4 x feed efficiency genes (GeneStar) provided by Pfizer Animal Genetics. SmartGene also developed methods to combine gene marker and performance information to produce marker assisted EBV s (EBV M ) (for details refer agbu.une.edu.au/smartgene.php). The results of the SmartGene assessment show that DNA markers for Tenderness have a small effect (8%) and will be useful if incorporated into a new trial Tenderness EBV M s. From the analysis of carcase records and based on the production systems studied, it was found that the marbling markers and feed efficiency markers were not informative enough to use in trial EBV M s for NFI. A further Beef CRC Independent Assessment of Molecular Value Predictions (MVP s), which have replaced the Pfizer GeneStar Stars (for details refer Beef-DNA-results). This assessment went onto confirm that most gene markers only explain a small variation of the target trait (at best < 10%) and that when tested across different populations the results can vary significantly. While it is true to say that DNA technology is still in its infancy, the research so far has revealed that the current available gene markers for production traits explain little of the variation of the targeted production traits. For seedstock producers to begin to utilize the technology for selection far more research, discovery and independent validation is required, including across different cattle populations.

4 Page 4 EBV Talk Gene Markers & EBV's cont. The expectation by some in the seedstock industry that Breedplan EBV s can be discarded in favour of a simple gene test is now totally mistaken. The realizations of researchers that we are dealing with hundreds, even thousands of genes which account for small amounts of variation in production traits leads to a requirement of more phenotypic measurements of animals to confirm and validate results. The best way to move forward is to incorporate the Gene Marker data with existing performance & pedigree data through the traditional Breedplan evaluation system to produce more accurate Molecular EBV M s. The quandary now facing the Australian Beef Industry is that large commercial companies that have developed their own gene markers are actively marketing them to industry, no matter what the results of independent assessments have revealed. The commercial model that demands shareholder return may not necessarily mesh well with the model that Breedplan is based on, which is owned and commercialized by industry for the good of the industry. The CRC for Beef Genetic Technologies commenced in 2005 and has a 7 year term. It is aiming to deliver about 1,500 markers for beef & carcase quality, feed efficiency, female reproduction and growth traits on a single DNA panel for less than $50. There is allot of science to be done to discover the genes and validate them by breed within Australian populations. The part that DNA technology plays in the genetic gain of the Australian Beef cattle remains as a blue sky issue. The Dairy industry has certainly discovered some useful gene markers and research continues. In the meantime, no need to act, just Watch this space!. Southern Beef Week Field Day Date: Monday, July 27, 2009, (Day 1) Time: 9 am to 4 pm All welcome to take this opportunity to visit our herd and talk to us about your breeding program and your requirements. Sale bulls, breeding females and a sample of our breeding herd will be available for inspection. Spring Bull Sale catalogues will be available on the day. Black Baldy Initiative Rennylea creating your future in beef Rennylea Angus and Wirruna Poll Herefords are pleased to announce a joint initiative to help breeders who are using or are moving to a Black Baldy crossbreeding system. As a simple criss-cross system, the advantages of the Black Baldy are well recognized and by making sure the genetics of the component breeds are well described and driving at the same target, we see an opportunity to help commercial breeders take advantage of hybrid vigour and improve their bottom line. The similarities of the breeding programs of these two seedstock producers are very clear. Both herds have very disciplined breeding programs and high level performance recording using BREEDPLAN. Selection focuses on a fertile and efficient cow herd selected under high stocking rate conditions with an understanding of profitability being achieved on a per hectare basis rather than a per head basis. An analysis of the two herds show similar goals for fertility and carcase traits. The herd average grassfed index for the Wirruna herd and the CAAB/Longfed index of the Rennylea herd sit genetically amongst their peers in the top 15% or better. A working relationship between Rennylea and Wirruna has existed for many years stemming from the old Performance Plus Beef Breeders Group, PPP pasture groups, Benchmarking groups and a Holbrook Beef Cheque group. This Black Baldy initiative is a joint effort to help clients look at the appropriate systems, profit drivers and tools to adopt in designing an ideal Black Baldy enterprise for your particular environment. For further information please either call Ian Locke (02) or Bryan & Lucinda on (02) Please note that our spring sales are on consecutive days. New team member - Corey Parker I am pleased to introduce Corey Parker who will be helping with client enquiries leading up to and on sale day. Corey will also be our sale presenter at Wirruna s Helmsman Sale on 26th August Corey has spent 10yrs in the Seed stock industry. 2yrs with Weebollabolla Shorthorns, and 8yrs with Hazeldean Angus. He has a natural eye for cattle and enjoys being involved with cattle people. In May this year Corey joined with Chris Callow Cattle Services, looking after the southern area. We aim to have Corey as an independent contact point for clients requiring any assistance regarding the purchase of Wirruna Bulls. He is only too happy to provide this help if you require. Contact: Corey Parker, Chris Callow Cattle Services Home: , Mobile: coreymel@bigpond.com

5 Page 5 "Combining Rocket's curve bending growth with the exceptional carcase of Fellis" SIRE PROFILE: C26 WIRRUNA CALLAN C26 Top of the drop Rocket son - One of the highest $Index bulls Homozygous Tru-Polled (Igenity tested) to dehorn progeny Carries rare trait combination of growth and calving ease Well muscled with EMA EBV in top 5% of the breed Birth Date: 10-Aug-07 Society ID: WNAC26 Horn/Scurs/Poll: Poll Semen Price $40/straw "Outstanding temperament" WLB REVELATION 67U 23B KOANUI ROCKET Q334 KOANUI BLUSH 9 Sire: KOANUI ROCKET 0219 KOA219NZHB KOANUI TARZAN P5 (IMP) (AI) (E KOANUI ANGEL R187 KOANUI ANGEL N162 EF F524 FELLIS 821C MOUNT DIFFICULT FELLIS Y12 (AI) MOUNT DIFFICULT TIGRESS U5 Dam: WIRRUNA GOLDEN VANITY A78 MOUNT DIFFICULT VIGILANT WIRRUNA GOLDEN VANITY Y103 WIRRUNA GOLDEN VANITY V23 Black highlight: Ranks with top 5% of breed Grey highlight: Ranks with top 20% of breed INTERIM GROUP BREEDPLAN EBV's (7/7/09) CALVING EASE GROWTH & MATERNAL Calving Ease Calving Ease Gestation Length Birth 200-Day 400-Day 600-Day Mat Cow Genetic DIR (%) DTRS (%) (days) Weight Growth Weight Weight Weight Milk % 47% 73% 75% 72% 70% 68% 61% 56% "One of the most complete bulls bred at Wirruna" Ian Locke FERTILITY CARCASE Scrotal Size Carc (cm) Days to Calving Weight EMA (sq cm) Rib Fat (mm) Rump Fat (mm) % 35% 61% 53% 61% 61% 59% 55% TURAL ASSESSMENT 24-Oct-08 Front Back 10-Oct RBY (%) IMF (%) MUSCLE SCORE C+ Temp. 1 INDEX VALUE Supermarket Grass Fed Grain Fed EU Index EYES Eye Pigment $107 $109 $115 $ /100

6 Page 6 Spring Bull & Female Sale 26th August Bulls and 8 PTIC Registered Heifers will be offered in this years' Spring Helmsman sale on property at "Spring Valley". Catalogues will be out by early August, and will include some excellent Wirruna sires and many breed leading genetics designed for the commercial beef producer. The following table shows the various categories of sale bulls offered and previous average prices. SEEDSTOCK PRODUCERS C O DE BEEF CATTLE OF PRACTIC E MN3 Autumn Bull & Female Sale 18th feb 2010 Save the Date! Contact Details: Wirruna Poll Hereford Stud Spring Valley HOLBROOK NSW 2644 Ian & Diana Locke Fax: (02) Mob: Home: (02) locke.ian@bigpond.com Website: Richard & Diane Locke Phone: (02) Pen No. Purpose No. Selected for... Prev Average $'s Wirruna Sires 6... trait leading sires used at Wirruna $5,698 7 & 8 Growth Bulls improve growth. High growth EBVs $3, & 11 Muscle Bulls boosting muscle. High EMA EBVs $3,625 1 & 2 Specialist Heifer Bulls ease of calving. Body shape & calving ease genetics $3,600 3 Good Herd Bulls 3... for various breeding objectives $2,838 6 PTIC Heifers 8... high quality females due to calve in Autumn 2010 Sires represented include: Koanui Rocket Mount Difficult Ungar U46 Allendale National W168 Heatherdale Opium U78 Wirruna Abracadabra A85 Please send me a bull sale catalogue: Wirruna Poll Herefords FAX: (02) locke.ian@bigpond.com Quamby Plains Stockmaster Y118 Markowen Intruder Z33 Elite J7C X54 Wirruna Vickery V16 Wirruna Abercorn A41 As you come to expect from Wirruna, we are offering bulls that are genetically superior to breed average and are in their working clothes ready for active service. $80 $70 $60 $50 $40 $30 $20 $10 $0 EBV (kgs) $67 $57 Supermarket COMPARISON OF $INDEX VALUES Wirruna Sale Bulls vs Overall Breed Average All Wirruna Sale bulls are independently assessed for structure and fertility including serving ability tests and are backed by Wirruna's guarantee and back-up services. They have been run in a single large management group up until 400 days to best identify the favourable genetics $66 Grass fed $51 $74 Grain Fed $56 $75 $65 by focusing on the collection of the highest quality Breedplan data. If you don't normally receive a catalogue and would like one please either ring Ian or fill out the cut-out slip provided and fax or mail to us. Should you be unable to attend our sale, we do have arrangements such as telephone bidding and placement of presale orders. We are very EU interested to discuss these arrangements and any other requirements that you may have. Wirruna Sale Bulls Breed Average EBVs Inspections of the sale bull are welcome anytime by appointment. Ian & Diana Locke Wirruna Poll Hereford Stud "Spring Valley" Holbrook NSW 2644 Name: Address: Phone No. ( ) Fax No. ( ) Or Please remove my name from your mailing list.