LIC is to collaborate with Scandinavian breeding co-operative VikingGenetics to improve the genetic links between New Zealand and Nordic Jersey cattle populations.  

The two breeding companies will work together on a pilot project that will bridge the genetic strengths of the two regions’ dairy industries. 

This involves exchanging sexed semen, which allows LIC and VikingGenetics to identify new bloodlines that perform well in their own dairy farming environments.  

LIC chief scientist Richard Spelman said they are deeply committed to safeguarding the future of the Jersey breed in New Zealand and worldwide.

“This forward-thinking solution will create stronger genetic connections between the Nordic and New Zealand Jersey populations and reduce the risk of inbreeding. 

“We look forward to being able to offer more genetic diversity to our New Zealand Jersey herds in the coming years.”   

 VikingGenetics is owned by more than 16,000 dairy and beef farmers in Denmark, Sweden, and Finland. They focus on animal welfare, food security and reducing climate impact in the entire production chain.

VikingJersey product manager and VikingGenetics senior breeding manager Peter Larson said the collaboration is a step forward in the overall genetic landscape of the Jersey breed, offering breeders a sustainable way to enhance herd health and profitability.

The collaboration will help address concerns over inbreeding within the two populations. 

Selected cows will be inseminated with sexed semen from top genomic sires, using stringent selection criteria to achieve the best genetic results. 

All progeny will undergo comprehensive testing, verifying their parentage, data from milk recording, health registration and classification, and more. 

Between 10 and 20 bulls from each company will be enrolled in the project annually. The ultimate goal is to have the best sires forming part of future breeding schemes.

The trading/finishing game has been red hot through late winter. In stark contrast breeding stock appear to be falling out of favour as trading and finishing taking preference. It’s not hard to see why, with the way the market has moved in recent months. The march of forestry has had a significant impact on breeding numbers in recent years. 

Breeding is a long game, raising the potential to miss heated market movements. But it remains a crucial cog in the wheel. Without breeding numbers, we will continue to fight for store stock, therefore pushing prices beyond sustainable levels. Unfortunately we are now playing catch up in terms of understanding just how many breeding stock units have disappeared.

Beef + Lamb NZ’s recent stock survey report indicated in the last five years a decline of 140,000 breeding cows. Expanding that to 10 years for sheep, and we have seen a decline of 5.4 million breeding ewes. This ultimately means lower calf and lamb crops every spring which flows through to less store stock and therefore lower production and exports. 

We have seen the ramifications of reduced stock numbers versus demand this year. Some will argue that lower stock numbers will naturally increase returns. Domestically maybe, but we are bordering on becoming a niche global player for lamb and barely holding on to a top-five spot for beef exporting. Our ability to influence global market prices is reducing as quickly as our breeding base. 

We only have to look at the growth of Australia’s livestock industry in recent years to understand we are quickly moving in opposite directions.

Australia’s sheep flock is currently at a 17-year high of 79m head, bolstered by significant growth in their breeding numbers, sitting at 49m –2024 will stand as the largest lamb slaughter year on record at 27.7m head. Even with some expected flock consolidation, lamb slaughter in 2025 and 2026 will be larger than the preceding 19 years.

A larger flock, coupled with advancements in productivity has placed Australian lamb producers in the box seat, meaning they are well positioned to capitalise on forecast global demand growth. It’s much the same for Australian beef. Although cattle numbers peaked in 2023, the cyclical nature of production means slaughter rates won’t peak until 2025. This means elevated production and exports in the short to medium term and once again the ability to capture any opportunities that arise.

More: Subscribe to AgriHQ Livestock reports to receive the full report. Key points discussed in the this week’s North Island report include: beef and lamb projections in New Zealand and key international markets such the UK, the US, Australia and Asia.

In Focus Podcast | A new strategy for advocacy

AGMARDT and KPMG have released a report that offers a new way of organising our advocacy networks. Common Ground assesses the positives and negatives of the advocacy groups we have now and sets out a strategy that could improve the collaboration and messaging emanating from the farming world. AGMARDT general manager Lee-Ann Marsh joins Bryan to discuss the report.

Colraine Herefords at Ohaupo, near Hamilton, has set a yearling bull price record for the breed of $37,000 in what is only the second on-farm auction for the stud.  

Colraine Washington 23 421 was bought by Mahuta Herefords and sold with a guaranteed one-year dairy semen contract from LIC for 10,000 straws.

He was independently identified by LIC beef genetics team as the very top Hereford yearling bull, suited to what the dairy beef semen market is demanding. 

John and Mary Allen, Mahuta Herefords at Tuakau, will still hold all semen rights for the beef cattle market in NZ and overseas.

Colraine principal Colin Corney said the sale vindicates a 10-year dedicated breeding programme focusing on calving ease, growth and a drive to improve eye muscle area along with intramuscular fat.

“The improvements are due to us working along with our good friend Dave Warburton, a production veterinarian who set up a group of breeders to join him importing genetics from the United States, Canada and Australia to help lift key traits within the NZ Hereford population.  

“On top of this we have invested heavily in recording as much as we can on all our animals to provide a genetic package that is as reliable as possible.”

Colraine sold all 10 of its bulls and averaged $6100, compared with last year’s $3480.

The sale was in conjunction with Kanuka Polled Herefords, which sold eight out of eight and averaged $3112 with a top of $4200 for Kanuka Seismic 2302.

The third vendor was Arabica Herefords with a complete clearance of nine bulls, averaging $2733 and a top of $3200 paid by Tawanui Herefords.

Waimaire and Otengi Herefords at Kaeo in the Far North kicked off the spring bull sale season with a top price of $9500 for a yearling paid by Bluff Herefords.

The average price paid for two-year-olds was $3960, with a top of $5000, and the averages for 18-month and two-year bulls were $2943 and $3851 respectively.

Bluff Herefords at Glenbrook, South Auckland, had a full clearance of 48 bulls, averaged $3389, nearly $1000 up on last year, and had a top price of $7700 paid by Streamlands Herefords.

Staying in Northland, Te Atarangi Angus at Te Kopuru had a complete clearance of 120 bulls and averaged $3856 compared with last year’s $3457.

Top price was $8500 paid by J Marchant.

Maranui Herefords and Angus at Waihi cleared the offering of 25 Herefords and 14 Angus, averaging $3000 and $3614 respectively.

Top price was $11,500 paid by Matapara Angus at Te Puke.

Totaranui Angus, Pahiatua, sold 76 of 79 bulls offered, averaged $4453 and had a top of $9000 paid by Ross Bolt of Horoeka.

Craigmore Herefords at Ohaupo sold 97 bulls with an average of $3037 and top prices of $6000 paid by Riverton Herefords and $5000 paid by Colraine Herefords.

Hoobees Herefords, Coroglen at Coromandel, sold 10 of 10 offered and averaged $4570 with a top of $8000 paid by Te Puna Herefords.

LIC is collaborating with United States-based precision breeding company Acceligen and the Bill & Melinda Gates Foundation to breed heat-tolerant and disease-resistant dairy cows for sub-Saharan Africa.

The initiative seeks to address food insecurity in the region by providing high-performing dairy animals to help grow sustainable dairy markets.  

It will combine LIC’s knowledge in breeding efficient dairy cows for pasture-based systems, with Acceligen’s cutting-edge gene-editing capabilities to produce animals that can produce more milk than native species. 

 LIC chief executive David Chin said the co-operative is proud to be involved with the initiative.

“Collaborating with Acceligen allows us to work with the very best in the world, whilst showcasing our advanced breeding capability to global markets.  

 “The initiative supports us to stay at the forefront of the latest technologies and is an opportunity to leverage international expertise with positive benefits for the dairy sector.”    

It is the first time LIC has embarked on a large-scale collaboration using gene-editing technologies, he said.

It successful, it could lead to similar kind of projects. It will also give LIC a good understanding of how gene editing works and the consumer acceptance of it.

“We’ll be in a much better position if the laws do change to understand how it could be used, how it could be adopted and what the technology is capable of.”

Embryos bred from LIC’s world-class pasture-based genetics will be sent to the US, where Acceligen will perform gene edits on the stem cells. 

These embryos will be sent from New Zealand to Acceligen in the last quarter of this year. The gene-editing process and birth of the calves that will grow into elite sires is expected to run until January 2026 and at that point, the bull calves are transported to Brazil where they are reared and their semen collected.

The semen straws are expected to be ready for sale in Africa through a distributer network by mid-2027.

The embryos will then be transferred into dams that will give birth to gene-edited sires. The bull calves will be transported to Brazil for rearing. The semen will be collected from these sires and sold into Sub-Saharan African markets through a developed distributor network.

Chin said the calves are being reared in Brazil for practical reasons. Brazil has a good reputation for rearing animals, it is a cost-effective option and most importantly, the country is well placed to export to other global markets including Africa.

The NZ government has committed to legislative change to enable the greater use of gene technologies, ending the effective ban on gene editing by the end of 2025. 

Chin said gene-editing technologies could help give farmers even more tools to improve their productivity and efficiency and it was something they have to explore.  

“By being involved, we do a lot of learning, we understand how this is going to work and if this is something we want to pursue, if this is something that could be interesting, then we’re in the best-placed position because we’re working with world leaders in this environment.” 

The five-year project is funded by the Bill & Melinda Gates Foundation with a budget of US$5 million ($8.3m). 

The organisation invests heavily in agriculture development to support farmers in Sub-Saharan Africa in their efforts to sustainably raise healthy, productive animals.