THE NEW STAGE TOWARDS 2022 HAS STARTED FOR CHOICE GENETICS
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1 December 2017 THE NEW STAGE TOWARDS 2022 HAS STARTED FOR CHOICE GENETICS As you have been informed, Groupe Grimaud and Aviagen have concluded an agreement under which Hubbard (broiler genetics) will be transferred to Aviagen. This transfer was necessary in the context of the continuing global avian flu crisis which had very negative effects on Hubbard s business. Hubbard will continue as a separate business unit under Aviagen and will be able to continue build its leadership position for the colored birds. While it is always difficult to part ways with a sister company, the sale of Hubbard means an increased focus and additional means for the remaining animal genetics companies of Groupe Grimaud, under which Choice Genetics. In this new context Choice Genetics has taken several steps under which: Strengthening the management team with the arrival of Thomas de Bretagne as Deputy General Manager of Choice Genetics globally and of Charlélie Boullé as Business Performance Controller Designing our strategic plan Stage 2022 under the Augmented Genetics-concept where we continue to put our customers at the center of our focus around 4 pillars: 1- Differentiated products with a special attention for robustness and meat quality 2- Integration of the Natural Concept: biological prevention of infectious diseases, animal welfare 3- Innovation in R&D through the Genetech platform 4- Building unique customer relations going beyond the mere delivery of breeding stock We will continue to inform you about each of these pillars and we are looking forward to an exciting future working closely with our customers. Enjoy this newsletter and we wish you happy holliday season. Pieter Seghers, CEO
2 HANSWINE STOCKS NEW BOAR STUDS WITH CHOICE GENETICS TO MEET RAPID EXPANSION GOALS In June and September, Hanswine (the Choice Genetics partner of Groupe Grimaud) stocked two new boar studs in the Hubei and Jiangsu provinces of China with Choice Genetics sires. The studs were designed by MOFA and use MOFA equipment, including automatic collection, diluent, package, and analysis system. Each stud will house 600 Choice Genetics boars and have 170 additional stalls in an isolation barn, which is separated from the main building. The facility was equipped with GSI ventilation equipment, including an air filteration system. To minimize summer-stress and maximize semen production, the boar studs stalls are equipped with central air conditioners. A rapid expansion As one of the main vertically integrated pork producers in China, Hanswine is rapidly expanding its pig production base. Hanswine has established farm systems in eight provinces. During 2017, the sow inventory increased from 69,000 to 150,000 with Choice Genetics. By the end of 2018, the goal is to double the sow inventory, and by 2025, to produce 30 million slaughter pigs. To match the rapid growth of the Hanswine sow herd, construction of the third stud in Guangxi province will be finished soon. Hanswine also plans to build an additional three studs in 2018 of the same size and high quality standards. All the studs will be populated with Choice Genetic boars from Choice Genetics China. By Gu Yaping and Jim Schirmer CHOICE GENETICS COMMERCIALLY VALIDATED PERFORMANCE (CVP) RESEARCH FARM Selection is traditionally done on the pureline animals at the top with the expectation that the genetic traits will be disseminated to lower tiers. This change does occur, but it can be hindered by the different environmental factors that may cause a low genetic correlation between performance at each level, and a resultant lower level of genetic improvement in the final end product. Information on crossbred progeny raised under commercial conditions can bridge this efficiency gap created by the use of traditional genetic nucleus selection. The interaction between genotype and environment that causes the low correlation in performance at both the nucleus and commercial levels can be accounted for and the information used to choose those candidates with traits that will improve the commercial environment. In other words, boars chosen for genetic improvement based only on pureline performance at a high health nucleus farm may not be the best boars to improve performance of the commercial pig. By choosing the right animals to be future parents, more genetic progress can be realized at the commercial level. Choice Genetics realizes the value in a Commercially Validated Performance program. We have recently populated a 600-sow, farrow-to-nursery facility to produce crossbred pigs sired by nucleus boars for this program. Breeding on this farm started in November 2017 and will produce commercial offspring from two of Choice Genetics primary terminal sire lines: EBX and P26, Pietrain and Duroc lines, respectively. A CVP program will be set up in France in early 2018 on P76 sire line. For Choice Genetics customers this means they can take comfort that the annual genetic improvement suggested by the nucleus genetic trends will be realized in their herds. Semen provided to them through the Choice Genetics boar stud network will come from animals that are the result of the CVP program and provide the annual genetic improvement necessary to remain profitable in a competitive pork industry. This important step in our program is an example of Choice Genetics and Groupe Grimaud s commitment to use technology to improve the profitability of our products, and to help provide protein to feed the rapidly increasing world population. By Chad Bierman, Ph.D
3 USE OF ELECTRONIC AD-LIB FEEDING IN FARROWING In early 2017, Choice Genetics France equipped the farrowing area at the Locmaria M3 Selection Farm with the Gestal feed system, an electronic Ad-Lib system, to see how it would maximize the lactation feed intake of the Choice Genetics females. After the first six months, all sows had been through the feeding system at least once, and we were able to do a preliminary evaluation of the lactation feed consumption of all sows. The staff at Locmaria followed the recommendations of Gestal by feeding four meals a day with each meal period lasting approximately 2.5 hours. Meal times were at 5 a.m., 9 a.m., 2:30 p.m., and 7 p.m. with 60 percent of each sow s daily intake given during the two first meals. The chart below shows the average lactation feed consumption during this 6 month evaluation. The feed consumption was higher than recommended with Gestal feeders. Day 1 is the day that sows farrowed. It is interesting to note that by day 3, consumption starts to increase and that by day 6, the intake is at almost 6 kg/day. The feed intake for parity 1 and 2 sows is less than older parity sows, but the intake curve remains the same. We observed a better uniformity of the piglets as well as a better body condition of the sows, even after they had nursed more than 12.8 piglets through the lactation period.the next steps include checking data after one year when we will evaluate the back fat and loin muscle depth of the sows at farrowing and at weaning and we will evaluate the consistency of the piglets at birth. This will allow us to reevaluate the recommended lactation feed curve for Choice Genetics sows. Customers who use similar Electronic Ad-Lib Feeding system in farrowing (Aserva, Acemo, Maximus, etc ), should not hesitate to follow an aggressive feeding curve during the lactation period. By Michel Launay and Curtis Boos SALES TRAINING WITH SOLLA, CHOICE GENETICS PARTNER IN COLOMBIA Colombia is a growing market for the pig industry: It has a young population with an increasing demand for pork. Geert Rombouts, business development manager of Choice Genetics, had the opportunity to give presentations and discuss what is happening in the global pig breeding market, including how Choice Genetics can bring enhanced performance to the Colombian producer. The first day was dedicated to general information on global pork production, international trade, consumption trends, and consumer awareness regarding issues of food safety, castration ban, antibiotics, and traceablility. Increasingly important in Colombia is what to produce and for whom. Solla has invested in meat shops in Bogota and Medellin, which guarantee high quality meat for the consumer with advice about how to cook it. Business models in the United States, Spain, and other European countries were compared and costs analyzed. Feed costs represent a high percentage of total production costs in Colombia, because the country imports a lot of raw materials. Choice Genetics offers Colombia farmers a high quality pig that is produced at the lowest cost thanks to our focus on feed efficiency and use of the CT scanner to optimize meat distribution and descrease fat deposition. Genetics trends in female and male lines in the breeding program were explained as well as the need for the clients of Solla to focus on management of this high value pig.the second day started with smaller groups brainstorming the strategic position of the Solla organization in the Colombian market and the Solla/Choice Genetics partnership. This was an interesting discussion with veterinarians and nutritionists who approached the topic of health and feed composition from different angles but with complementary information. This two day meeting illustrates the importance of collaboration between a genetics company and its distributor. Solla has built a strong customer base with its focus on excellent technical support, assuring the maximum expression of the genetic potential of the Choice Genetics breeding stock. The warm welcome by the Solla staff was appreciated, and we look forward to the major national congress in April By Geert Rombouts
4 NAÏMA 2.0: A SOW WITH EXCEPTIONAL MATERNAL QUALITIES PRODUCES MARKET HOGS THAT PERFORM A feed company in France published a benchmark comparison showing multiple farms using multiple maternal genetics. Seven of these farms are using the Naïma 2.0 female, and all are using the same feed. The Naïma 2.0 provides an economic advantage of more than 200 /sow/year. The tables below show that Naïma 2.0 is an extremely competitive sow not only in areas of prolificacy by marketing more animals/ sow/year, but also in terms of growth and feed conversion of the market hogs she produces. NAÏMA 2.0 Other Genetics Difference National Average NAÏMA 2.0 Other Genetics Difference National Average Number of Farms 7 46 Total Number of Sows 1,400 10,350 Average Herd Size Wean Weight (kg) Market Weight (kg) Birth to market Daily Gain (g) ADG(g) from kg Pigs Marketed /Sow/ Year Margin above Feed Cost Pig/Sow 23 1, /sow 1,047 Overall Feed Conversion Feed Conversion (8-115 kg) % Mortality % 6.3 NAÏMA 2.0 produces more market hogs/sow/year with a heavier weaning weight, a higher ADG, and a lower feed conversion when compared to competitors. Research has shown that a higher wean weight will result in a better overall average daily gain from wean to market. The pigs from Naïma 2.0 are experiencing better growth than the other genetics. This performance along with the better feed conversion is achieved with lower percent mortality which contributes to more full value market pigs per year. The data confirms the progress of NAÏMA 2.0 offspring in France for important traits. Indeed, the ADG and FCR from weaning to market (8 to 115 kg) for the top 30 percent producers has progressed significantly. They are achieving an ADG of 730g/day while nearing a 2.40 feed conversion. This has also translated into the quality of the market hog carcass. The percentage of lean has evolved positively in spite of the notable increase in the weight of slaughter hogs and reaches 61.3 percent lean for the top 33 percent of farms. This evolution is confirmed by the 2017 data, which show Naïma 2.0 offspring in the top grading compared to the average UNIPORC for an equivalent weight. ADG FCR Weight Lean Meat By Michel Launay
5 CHOICE GENETICS BRAZIL WORKSHOP: HOW TO DEVELOP A SUCCESS STORY WITH NAIMA 2.0 Last November, in Foz do Iguaçu, - Paraná- Brazil, took place the Choice Genetics Brazil Workshop in order to present updated guidelines for the management of the hyperprolific Naïma2.0 sow. More than 50 professionals from the Brazilian, Paraguyan and Argentinian pork industries attended. The first part of the event was about the key points for maximizing the genetic potential of the NAIMA 2.0, while the second part focused on reducing the genetic gap between nucleus hers and commercial farms. Two key note speakers conducted the event. Yves Naveau, Executive Director of Choice Genetics Brazil, presented the latest genetic results achieved with the Naïma2.0and demonstrated how these studies and advances can improve quality of production. The second lecture was given by Michel Launay, Choice Genetics in Technical Support Manager for Choice Genetics in Europe with a very long experience in assisting Naima 2.0 farms in many countries worldwide. Michel Launay used field performance data to demonstrate the benefits of proper management, of reduced animal stress and of a balanced diet for optimum body condition and bone structure development. One highlight of the workshop was the assessment of the corporal score of the gilts. With the strong increase of the genetic potential of the Naïma 2.0, gilts must be well-prepared for reproduction so as not to become too muscular and be able to lead a long and highly productive reproductive life. Sharing experiences with other professionals will certainly improve and facilitate the work of small and large producers in Brazil, Paraguay and Argentina. By Yves Naveau APSN BIOTECH (MALAYSIA) VISITED CHOICE GENETICS Last november, a group of producers with APSN Biotech (Malaysia) visited Choice Genetics at the head office in France. France Perrot, International Development Director and Fabien Restoueix, Technical Specialist had the pleasure to present Choice Genetics Research and Development strategy and products as well as explain the key points to maximize the genetic potential of the NAIMA2.0 sow. During the journey, they visited a 1500 NAIMA2.0 sows farm. They could share with the farm manager experiences and discuss about NAIMA2.0 s performances, mother abilities and carcass quality of its offsprings. The farmers were very impressed with the visit.
6 WELCOME Thomas de Bretagne Thomas de Bretagne has joined the Choice Genetics team last August. Thomas is based in Maxent (France). In his capacity of Deputy General Manager of Choice Genetics SAS, Thomas will ensure the general management of Choice Genetics France (approximately 80% of his time) and he will assist in the general management of Choice Genetics (approximately 20% of his time) with a special focus on the supervision of Choice Genetics global R&D program. Thomas has worked for Pen Ar Lan as R&D Director between 2002 and 2010 after which he joined the French company Evolution (Bovine Genetics) as R&D Director. Before joining Choice Genetics, Thomas was Hubbard s global R&D Director. (Broilers) Thomas is 37 and became a Master of Science in Agriculture in Thomas professional experience, his personal skills and passion for animal genetics will ensure an innovating vision on our R&D program and Choice Genetics further global development. Charlélie Boullé On November 1st, Charlélie Boullé has joined the Choice Genetics-team as Business Performance Controller. Charlélie is based in the office of Choice Genetics France in Maxent (France) but will be travelling on a regular basis in order to work with our finance and administration teams in Europe, Asia and the America s. It is Charlélie s responsibility to manage the financial performance of Choice Genetics globally and thus to accompany and implement Choice Genetics strategy in economic and financial terms. He will take care of Choice Genetics global financial reporting, streamlining and implementation of Key Performance Indicators (KPI s), cash management, consolidation, Charlélie will work very closely with the Finance and Administration Managers of all subsidiaries as well as with Cyril Meyer, CFO of Groupe Grimaud. After obtaining his Master s degree in Enterprise Finances in Lyon (France), Charlélie started hisprofessional career with Deloitte to become a Senior Auditor. Before joining Choice Genetics, he was Reporting Controller with Smith & Nephew France, a listed distributor of high technological medical equipment where he was in charge of the financial reporting to the parent company in the United Kingdom. Charlélie has the technical as well as the personal skills to build together- and to support our ambitions in pig genetics. Jennifer Bauer Choice Genetics USA is pleased to announce the addition of Jennifer Bauer as our Human Resource Manager. Jen joined us in March of 2017 and previously worked in HR in retail management for many years before taking a career break to raise her three children. I am excited to be part of the Choice Genetics team and the opportunities it will bring. Shayna Kuhns Choice Genetics USA is pleased to announce the addition of Shayna Kuhns as a Senior Accountant. Shayna was formerly with The Graham Group, Inc. in property management accounting for almost 10 years. Shayna was recently married this September. They have four children to keep them busy. She has an Associate Degree in Accounting from AIB College of Business & a Bachelor s degree in Accounting with a minor in Finance from Upper Iowa University. She is very excited to be a part of our team! SEE US AT IOWA PORK CONGRESS USA January 24 to 25th AGROFARM Russia Moscow February 6th to 8th WORLD PORK EXPO USA - Des Moines- Iowa June 3 to 6 SPACE France - Rennes 11 to 14 september EUROTIER Germany - Hanover 13 to 16 November Editor: Pieter Seghers All photos property of Choice Genetics 2017 Choice Genetics
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