Beef genetics for accelerated economic growth

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1 BGP-Beef Genomics Program Beef genetics for accelerated economic growth presented by Thys Meyer 11 March 2014 Issue 1

2 Origin An initiative from South African Beef Breeders under the auspices of the South African Genomics Consortium in response to the Technology Innovation Agency request for inputs to a business case for establishing an animal breeding and reproduction technology platform.

3 Benchmarking The proposed SA BGP is based on lessons learnt from similar programs elsewhere in the world. The strategic intent of SA BGP is to benefit from those lessons learnt and co-operate (within Breed context) with Breed Societies elsewhere in the world to ensure the implementation of sustainable world competitive genomic technologies in the Southern African beef industry. Organisation Country Description Beef CRC Australia Several Australian Beef Breed Societies currently run BIN programs in close co-operation with Beef CRC, Australia and co-funded by MLA. ICBF- Irish Cattle Breeding Federation Ireland The ICBF has embarked on a similar program to implement Genomics into the Irish Beef Industry

4 Envisaged outcome 1. Improved economic growth and enhanced food security through applied beef genetics & technology. 2. Embedded Southern African beef genetics relevant to future food production. 3. Improved world competitiveness of SA beef industry. 4. Potential genomic tools available to small scale farmer in future at affordable cost. Millennium 5. Reduced greenhouse gasses. Development Goal 7 6. Payback period = 1 beef generation after implementation.

5 Goals 1. Improved accuracy (r) = Accelerated progress ( R ) 2. Genomics reference population. σ g = Genetic Variation i = Selection Intensity r = Accuracy of Selection L = Generation Length R = Response to selection ( genetic progress ) 3. Accurate database for difficult to measure traits. a) Residual Feed Intake/ Residual daily gain (Breed decision). b) Carcass attributes. c) Female fertility. 4. Improved accuracy and completeness of Economical Indexes. 5. Establishment of breed specific EBV s aligned with breed objective.

6 Why do we need phenotypes Quote from Beef CRC Australia on calibration of GEBV prediction equations If a breed or breed group does not have related animals and their associated genotypes and phenotypes in the training dataset then it is very likely the accuracy of the GEBV will be 0%. This highlights the importance of the calibration step being performed before the GEBVs can be used with confidence in an individual breed s BREEDPLAN analysis.

7 Effect of number of individuals on accuracy of prediction equation h2=0.8 h2=0.5 h2=0.3 h2=0.1

8 Reference population Genotypes of influential sires and dams Access to international genotypes of Breed Read across from other breeds genotypes Links to international reference populations Genomic development strategies Each Breed Society will define it s own strategy considering the alternatives available and their breed objective Own population phenotype data base for all traits, including difficult to measure traits

9 Key principles 1. Each Society defines and manages it s own Project independently. 2. The program provides for flexibility to accommodate the different breeding objectives of the Breeds. 3. The Program defines and applies standards & manage collective activities (only). 4. Data ownership (phenotypic and genomic)remains with Breeder/Breed Society; each Breed makes all data collected available for storage on a central database available for national research and across breed research. Right of access to data for research to be given by Society to any interested research group. 5. Central database based upon to be agreed rules between the stakeholders.

10 Key principles 6. Project governance and financial controls through existing capacity at to be agreed research institution. 7. Each Breeding Society has freedom of choice in terms of service providers and or research institution for within breed research. 8. Capacity building through-out industry, inclusive of existing service providers in private sector.

11 Governance financial controls & governance. Provided by public funded research institution Data ownership Breed Societies Data management: Centralized data bank Key role-players Program management Genomics consortium Project ownership Breed Societies Funding Farmers TIA Breed societies Feedlots THRIP RMRD SA International funds Test execution ARC API Private test stations Farmers Research ARC Universities Studbook Service providers ARC ( API & BTP) Breedplan SA Studbook Unistel laboratories (non comprehensive list)

12 Steering committee The program will be managed by a Program Management team reporting to a steering committee. The steering committee will include the Program Manager and representation from Breeding Societies, Red meat Industry Institutions and Research community The funders (Breeding societies, Industry and Government) will have the right to appoint three of the Steering committee members.

13 Breed Societies with potential to participate Bonsmara, More than 95% of productive female population provided for Nguni, Brahman, Simbra, Beefmaster, Simmentaler, Boran Brangus, Santa Gertrudis, Angus, Drakensberger, Afrikaner, Limousin Tuli, Sussex, Hereford, Braford, Charolais Breeds with smaller productive female populations are welcome to submit their BGP project plans with a clear objective to achieve a minimum agreed reference population size within the program timeline

14 Participants from Industry Research & training Universities (co-operation from other universities will be welcomed) Agricultural Research Council Service providers UL UFH UFS UNIVEN UP US ARC-API Limpopo Fort Hare Free State Venda Pretoria Stellenbosch Animal production Institute ARC-BTP Biotechnology Platform Breedplan Studbook Both service providers have in-house research & development capacity

15 Participants from Industry Commercial Service providers AGRIBSA-Breedplan. ARC Animal Production Institute. ARC Biotechnology Platform Onderstepoort. Private test stations. Stud Book SA Unistel Laboratories. Other local & international laboratories and research groups.

16 Budget for 23 breeds, 10 year program. Excluding CAPEX Ref population size Budget per breed (including feed efficiency) # of breeds Budget per breed (excluding feed efficiency) # of breeds Total R million ,842, ,368, ,045, ,473, ,519, ,875, ,451, ,201, ,501, ,653, ,156, ,337, ,753, ,090, ,560, ,288, ,410, ,302, ,512,480 74,000 Sub-total (testing) R 192,260,380 Research Program Management Contingency (5%) 14,150,000 20,000,000 11,914,846 Total 18 5 R 238,325,226 Research budget to be confirmed

17 BGP cash-flow requirements (excluding CAPEX).

18 Breeder contribution, 10 year program. Cow maintenance R 186,000,000 Female progeny maintenance R 621,748,800 Feed efficiency test R 133,152,136 Transport cost back to farm R 6,562,500 Total Breeder costs R 947,463,436 Breeder expenses nearly 4 x external contribution required

19 Payback period (National herd). Value Description 14,000,000 National beef herd 50% assumed % of breeding females 7,000,000 number of breeding females 1% % improvement in fertility 70,000 extra calves born per annum 180 average wean weight R 16 value at wean (R/kg) R 201,600,000 Value of fertility improvement 14,000,000 National beef herd 1% % improvement in nett feed intake 70,000 extra calves reared per annum on same available feed R 201,600,000 Value of feed intake improvement 5% % improvement in wean weight R 504,000,000 value of increased wean weight R 907,200,000 Annual benefit R 238,325,226 Investment required 3.15 Payback period (months) A payback within one generation after implementation in to the National herd is thus feasible

20 Payback period, commercial herd. Value Description 445,932 Active stud cows in National herd 45% assumed % of calves borne /annum from active stud cows 100,334 number of bull calves borne per annum 20% % of bull calves sold for breeding 20,067 number of bulls sold per annum 20 number of calves borne /sire /annum 401,336 calves borne/annum from registered bulls 1% % improvement in fertility 4,013 extra calves born per annum 200 average wean weight R 16 value at wean (R/kg) R 12,842,752 Value of fertility improvement 1% % improvement in nett feed intake 4,013 extra calves reared per annum on same available feed R 12,842,752 Value of feed intake improvement 5% % improvement in wean weight R 64,213,760 value of increased wean weight R 89,899,264 Annual benefit R 238,325,226 Investment required 2.65 Payback period (years) A payback within one generation after implementation in to the National commercial herd is thus feasible

21 Next steps 1. Agree appropriate governance structure between TIA & industry. 2. Establish general program principles applicable to all, with sufficient flexibility to provide for various breed strategies. 3. Agree appropriate rules and model for centralised database between all parties within TIA framework 4. Align business case with TIA ABRT platform business case. 5. Submit funding application and business case to TIA in response to TIA request for proposals.

22 BGP Beef Genomics Program Beef genetics for accelerated economic growth A technology project to ensure the future relevancy of Southern African Beef genetics. Thank you

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