solving the mystery of INTERNATIONAL MARKETS :: LIVESTOCK GENETICS

Written by Mona Howe

If you haven’t marketed cattle and/or genetics beyond Canadian borders it may seem like a daunting task or even too far outside of the realm to be considered a viable option for your operation. Allow us to answer some of those questions you may have. Let us give you some tools to aid in choosing whether it could be the key to expanding your market opportunities. Experts PJ Budler and Dr. Don Miller help us shed some light on the process and the potential.

While everyone in the seedstock sector is familiar with the process of marketing our respective livestock and genetics here at home, one of the first questions you might ask is, “How do I go about generating interest for my genetics in other countries?’’

“First off, by travelling to these markets and attending their shows and sales,” says PJ Budler of Global Livestock Solutions. Having been raised in South Africa and currently residing in Texas, running the “Champion of the World Competition”, speaking at, consulting for and judging cattle shows in over 100 countries around the world has made Mr. Budler a go-to guy when it comes to marketing genetics internationally. He stresses that meeting producers, getting to know them and hopefully taking the opportunity to visit their operation is key to building a solid foundation on which to do business. As Budler states, “People do business with people they know,” so that initial contact and continuing to grow the relationship are critical first steps. Equally as important, is taking the time to host international visitors and going out of your way to make them feel welcome here.

A few essential elements that need to be understood when it comes to marketing your genetics to breeders in other countries include the objectives, resources and environment of the client. Aligning your genetic product with these fundamental needs is pivotal to the success of the transaction.

When it comes to effectively marketing your genetics to other countries, it is beneficial to have a close working relationship with a semen and embryo collection facility well versed in export production. “Being able to produce genetics that meet the health requirements of the importing country in a timely manner and getting them shipped there quickly is a necessity,” explains Dr. Don Miller of Sundown Livestock Transplants, who has been in the business since 1986. “Depending on the country, these regulations can change overnight”, cautions Dr. Miller so working with an experienced production facility will ensure the process goes as smooth as possible. When marketing to countries with relatively stable health requirements, Budler adds, “Creating a semen and embryo inventory is helpful. Sales can happen quickly and consistently if one has a product that is qualified for specific markets and is ready to ship.”

From a collection facility perspective, Dr. Miller stresses the importance of dealing with reputable people and signing contracts for the genetics that will trade hands. The process to produce these exportable frozen genetics is not cheap so prior to them being shipped it is critical to “make sure the money flows” as he puts it. “Once they are on their way I can’t whistle and make them come home,” jokes Miller. He also makes mention that collection facilities are strictly the middle-men in the process so to speak. “We are in the production business and leave the marketing up to individual breeders. If we receive requests from breeders abroad, we refer those to our customers who either have genetics stored with us or animals being collected in our facility.”

Frozen genetics tend to be the most cost effective and efficient way to move genetics internationally. While it may make sense to export live cattle in some instances, semen and embryos present a greater opportunity for you and your international clients. As Dr. Miller says, “The economics of shipping 500-1000 embryos abroad is much more feasible than sending one live animal. Semen is a great option too.” Also, “When an imported embryo is transplanted to a recip local to that environment she passes on immunity to many diseases present in that environment to the resulting calf in utero, at birth and through nursing,” notes Dr. Miller. In contrast, a live animal may take a year or more to adapt to a foreign environment if it ever really does acclimate properly and thrive there. The one exception to this rule of thumb being live cattle trade with our neighbours to the south in the US, where the Speckle Park following continues to grow.

One aspect of the process that must not be overlooked is the health testing requirements before, during and after the production of these frozen genetics. These are necessary for both the bull when producing exportable semen and the donor cow when producing embryos. Dr. Miller briefly outlines some basic regulatory considerations for producers.

• Use of exportable semen for the flush or the sire at least having the same health status as the donor female

• All embryos produced and froze by a CETA ( Canadian Embryo Transfer Association ) certified and CFIA accredited veterinarian and transplant center.

• Once produced and froze, all export eligible embryos must remain in control of a certified transplant center and when transported, in export tanks under an export seal.

• CFIA export health certificates for the destination country must be completed, along with dates and results of any requested health tests and record of donor isolation if required.

• All health certificates must be endorsed by CFIA prior to shipment.

“Fortunately,” says Dr. Miller, “The transplant company you are working with has all the necessary information for the respective destination and will arrange for the appropriate testing”. “China, the EU and New Zealand are currently the most difficult to navigate from a health perspective. However, Canada is fortunate to have such a high health status, that getting embryos and semen shipped around the world is relatively straight-forward,” includes PJ Budler.

It’s no secret that Canadian breeders produce some of the most sought-after genetics in the world, especially within the Speckle Park breed. Marketing these genetics to other countries not only helps improve the genetic potential of their bovine herds, it also presents a significant opportunity for economic gain to producers here at home. “Genetic exports allow for a breeder or breed association to expand their market share beyond their boundaries,” points out Budler. “It allows for more premium to be captured on live cattle, semen and embryos,” he continues.

The good news for the Speckle Park breed, and of course, its breeders is that these genetics are rapidly becoming a hot commodity. “The Speckle Park market is growing exponentially internationally,” affirms Budler.

“Australia is certainly the dominant import country. New Zealand has developed a strong nucleus of breeders and genetics. Growth in the UK and Ireland is slow, but steady. The live animal trade into the US will see a good decade of growth, provided the right genetics move south and there is continued mentorship from the Canadian breeders. Argentina is sampling some good Canadian genetics. South Africa is interested in establishing the breed too, but has some political hurdles to overcome,” summarizes expert PJ Budler.

With the breed gaining popularity in several countries beyond our borders it does indeed bode well for breeders considering the international marketing option.