Genomic Management: Impact on Sustainability

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Genomic Management: Impact on Sustainability David C. Thorbahn, Select Sires Inc. 1

Definition of Sustainability: the ability to survive, be sustained, be supported, or confirmed the quality of not being harmful to the environment or depleting natural resources, and thereby supporting longterm ecological balance The Three P s of Sustainability the economic - Profit the social - People the environmental - Planet 2

Survival in the Dairy Business Low Cost/most profitable Differentiate All have to be environmentally and Mom friendly Presentation Genetics Works Required for Long-Term Profit Maximization Genetic audits required like financial audits Breed for total profitability Selection Index for total profit New Methodologies of Application and Delivery Better for the environment/mom Friendly Lowers the Carbon Footprint Healthier cows and Healthier Product 3

Turning Records Into Genetic Information Performance Pedigree Animal s True Genetic Merit Progeny Genomic Evaluation Process Estimate 60,000 SNP Effects Build a Reference Population 40,000 AI Bulls 500,000 Cows w/records DNA Test Young Animals Compute Genomic Evaluations then Make Selection Decisions 4

Genomic Evaluation Reference Population more data greater accuracy Proven Sires Cows Heifers Holstein 41,655 543,412 1,342,441 Jersey 6,121 99,361 152,414 Brown Swiss 7,135 2,903 5,317 Ayrshire 859 415 6,250 Guernsey 497 1,067 2,162 Genomic Results: = 33 Daughters in 33 Herds Production 129 Daughters in 129 Herds Productive Life Genomic Test 5

What if you could: (What is it worth to you)? Increase production by 6 to 10 lbs per cow per day? Increase Pregnancy Rates by 5 to 10%? Increase Conception Rates by 4 to 6%? Decrease days open by 20 to 25 days? Reduce sold and died cows by 200% or more and Have cows with limited health events? Proof that Genetics Works Tracking the genetic performance with data from the Actual Dairy Comp backup file 6

Accurate Data is a MUST! (Parentage ID) Select Sires PGA Testing Results from 883 Animals/64 Herds was Misidentified 17.9% of the time. Range: 100% to 1% Sire ID National Average Misidentification 24.9% Updates: Genetic Tools Pedigree Index: ½ the sire, ¼ MGS Accuracy 12.5% to 25% Acc. Parent Average: ½ Sire PTA + ½ Dam PTA 20% to 40% Acc. Genomic Test: DNA analysis 55% to 75% Acc. 100% accuracy in Parent ID 7

Genetic Audit - Genetics Impact 1 st Lactation Cows PTA Estimate Data Qrtl Avg. PTAM Count Average 305ME Average Relative Value Week 8 Milk Avg. Milk Avg. Lowest 435 480 31,764 97 93.0 82 3 rd 725 483 32,781 100 93.9 85 2 nd 886 483 33,616 103 93.5 87 Highest 1,200 483 34,170 104 94.8 88 1 st Lactation Cows Genomic Data Qrtl Avg. GPTAM Count Average 305ME Average Relative Value Week 8 Milk Avg. Milk Avg. Lowest 323 436 31,136 95 88.7 80 3 rd 755 437 32,599 100 91.0 85 2 nd 1,034 436 32,669 103 95.9 87 Highest 1,444 437 35,610 109 99.6 91 2,406 pounds of milk difference - At $15/cwt milk, there is $173,232 more annual income from the top group compared to the lower ETA milk group - 480 cows per contemporary group - Herd total is 4X number 4,474 pounds of milk difference between top and bottom group and 11 pounds/day - At $15/CWT milk, there is $322,128 Genetics Impact on Fertility Daughter Pregnancy Rate (DPR) 1st Lactation Cows PTA Estimate Data Qrtl DPR Avg Count Pregnancy Rate Avg. Days Open 1 st Service CR All Services CR Lowest -1.0 455 24% 124 44% 37% Highest 1.2 458 29% 97 48% 42% DPR = Daughter Pregnancy Rate 1 st Lactation Cows Genomic Data Qrtl DPR Avg Count Pregnancy Rate Avg. DOPN 1 st Service CR All Services CR Lowest -1.8 418 24% 125 42% 38% Highest 1.7 437 32% 103 49% 47% The upper DPR group gains of 5% of Pregnancy Rate. Reduction of 27 average days open in the higher DPR group 4% CR on 1 st service and 5% on all services. At $10/point of PR, this is $18,250 savings on the upper group - 8% higher Pregnancy Rate - 7% higher CR on 1 st service and 9% on all services - 22 fewer days open DPR = Daughter Pregnancy Rate 8

Genetics Impact Fertility & Health Heifer Conception Rate (HCR) HCR Heifers Genomic Test Qrtl HCR Avg Count Pregnancy Rate Avg. Age Pregnant 1 st Service CR All Services CR Lowest -0.3 1,443 33% 412 57% 53% Highest 1.9 1,578 38% 409 62% 61% HCR= Heifer Conception Rate 2 nd Lactation and older cows Somatic Cell Score (SCS) Qrtl SCS Count SCC PSCC LgSCC Mastitis 4th 3.03 344 193 244 2.2 75 1st 2.78 359 157 129 1.8 21 Genetics Impacting Health 2 nd + Lactation Cows - PTA Productive Life (PL) Pedigree Estimate Data PL Avg. Fresh Abort DNB Sold Died Lame Mastitis Injury Low PL Cows -0.5 889 169 443 221 135 142 832 33 High PL Cows 2.6 891 63 112 153 36 40 213 21 NM$ 2 nd Lactation PTA Estimate Data Qrtl Estimate By NM$ Count Average 305ME Relative Value Preg Rate Days Open Abort DNB Sold Died Ket Lame Mastitis Lowest 74 761 31,116 95 20% 123 102 510 576 138 9 173 960 Highest 349 765 33,059 101 24% 109 79 114 374 45 4 42 235 9

1980 Seed Corn vs Semen Value of Competition and Data $29.82 per unit vs Today $68 per bag DeKalb vs Today How do we get better? Breed the complete animal Health traits Mastitis, Laminitis, DA, Metritis, Ketosis, Retained Placenta, Hoof Health Calf Health Traits Livability Scours Respiratory Sustainability Traits Feed Efficiency, disease resistance 10

CDCB: Total Health Records in Aug. 2018 Total Records Mastitis 2.5 Million Dis. Abomasum Cows 1.4 M 1.9 M 1.0 M Included in NM$ Calculations Ketosis 1.3 M 0.7 M Metritis 2.0 M 1.2 M Milk Fever 1.2 M 0.7 M Ret. Placenta 2.0 M 1.1 M GENOMIC PREDICTIONS FOR WELLNESS TRAITS Wellness traits are expressed as a standardized transmitting ability (STA) Wellness Trait Average Standard Minimum Maximum Deviation (Worst) (Best) Mastitis 100 5 76 115 Lameness 100 5 73 115 Metritis 100 5 75 115 Retained Placenta 100 5 71 116 DA 100 5 69 111 Ketosis 100 5 72 113 Mastitis (STA) Lameness (STA) Source: Data on file, Zoetis internal data, August 2015, Zoetis Inc. 11

IMPROVING CALVES ABILITY TO SURVIVE AND THRIVE March 1, 2018 SCOURS AND RESPIRATORY ISSUES ARE TOP REASONS FOR DEATHS IN HEIFERS Reasons for Pre-weaned Heifer Deaths (as % of all deaths - 2007 NAHMS) Scours Respiratory Calving problem Other or Unknown Reasons for Weaned Heifer Deaths (as % of all deaths - 2007 NAHMS) Scours Lameness Respiratory Other or Unknown Calving problem 5% Other or Unknown 16% Other or Unknown 28% Scours 13% Respiratory 23% Scours 56% Lameness 13% Respiratory 46% USDA. 2008. Dairy 2007, Part II: Changes in the U.S. Dairy Cattle Industry, 1991 2007 USDA-APHIS-VS, CEAH. Fort Collins, CO #N481.0311. 12

NEW CALF WELLNESS INDEX TM (CW$ TM )?» Calf Wellness Index (CW$) is a multi-trait selection index that focuses specifically on genomic predictions for common diseases and mortality of dairy calves Reported in dollars ($) Emphasis applied to each trait is determined by the importance of that trait in overall profitability Calf Respiratory Disease Calf Scours Calf Livability 29% 43% 28% DAIRY WELLNESS PROFIT INDEX (DWP$ )» Comprehensive selection index Production, reproduction, longevity, milk quality, calving, functional type, cow and calf wellness, plus polled Developed using standard selection index theory» Economic index describing differences in lifetime profitability Same economic assumptions as Net Merit (NM$) for core traits Economic values from scientific literature for cow and calf wellness traits Economic incentive for selection of animals with polled genotype Production Reproduction Functional type Longevity, milk quality & calving Cow wellness Calf wellness 25% 19% 8% 10% 32% 6% 13

Use in a Selection Index DWP$ Net Merit$ Cheese Merit$ Individual herd index for your conditions and how you sell milk Additional Traits and Methodologies Accurate milking speed data from robots A2/A2 Robot acceptability Hoof Health is coming Conductivity traits to add mastitis resistance trait Genomic prescription genetics for disease treatment Methane production? 14

February 25,2016 Fertility Value Per Straw Economic Value of Pregnancy in Dairy Cattle A. DeVries J Dairy Sci, 89:3876-3885, 2006 $278 = Average value of new pregnancy $2.78 more value/point of SCR $2.00/point, Pecsok & McGilliard, JDS 1994 $6.50/point, Dechow, Hoard s, 2016 15

How do I go faster? Female Selection Options: Sexed Semen & Beef Semen Breed top genetic animals sexed Breed remaining to highest value offspring Embryos Commercial goal embryos - High NM$ F1 Cross embryos for replacements Remaining animals are profit opportunities 16

Sexed Semen & Beef Semen Considerations Rank animals in herd genetically Use PI, PTA or genomic test to rank Use a replacement calculator for heifer needs Develop a program to market excess offspring Market will be loaded with Dirty Holsteins Advantages of Dairy Beef over Beef Holsteins are inbred and naturally high on tenderness gene 100% A.I. Babies vs 60% A.I. or less 100% consistent traceability 100% genetic traceability Vaccination protocol Mineral supplementation Health record protocol Genetic specifications Traits: Fert, CE, weaning wt., carcass quality 17

Make Everything Produced a Profit Center! Dairy/Beef Planning When do you sell? Wet Calves Price is most vulnerable/hard to be a price maker Hard to take advantage of your management 300 700 pound feeder calves Premium: Lot Loads 50,000# (100 150 consistent head) Fat Steers New Programs and Deliveries Embryos Delivery mechanism Real and will grow Offers choice of genetic level and hot weather fertility F1 crossbreds Concerns: Cost of reproductive performance Management is more intensive Cost per pregnancy vs return 18

Sustainability must be environmentally and Mom friendly 19

What public is fed? GMO Free (Wines/Plants only) Hormone free (No rbst) Antibiotic Free (Test every tanker load) We must inform the consuming public! High Protein (Whey Protein) Cancer fighting (Its in the fat-clfa) Fat Free (value in fat?) Gluten free Naturally Sugar Free (Fairlife) Genetics Can Make Healthier/Happier Cows Lower disease incidence Lower lameness GMO Free Healthy cow is a happy cow High traceability Good for the environment 20

The environmental impact of dairy production: 1944 compared with 2007 J. L. Capper,* R. A. Cady, and D. E. Bauman*2 Take Aways Get an annual Genetic Audit Genetics Work - Use the best genetics Use a complete value-based selection index Selecting females can make faster progress Use SCR as a unbiased tool Make every thing you produce a profit center Help inform consumers 21

Are you up to the challenge? 22

Thank You To Select Sires Inc. 23