THE nation’s largest and most influential seedstock representative body has taken Meat & Livestock Australia to task over its proposed establishment of a national multi-breed genetic evaluation platform.

In an email to Angus Australia members distributed earlier this afternoon, chief executive officer Scott Wright discussed the significant changes confronting Angus Australia and the broader Australian beef industry, particularly MLA’s ambition to establish a national multi-breed genetic evaluation.

MLA earlier told Beef Central it has already consulted widely across industry on the topic. Some suspect there may be formal announcements made during MLA’s annual general meeting and Updates program in Townsville on 24 November.

Angus Australia earlier undertook a survey of its membership to gauge opinion about the national multi-breed genetic evaluation proposal. Results from that survey will be discussed in a separate item to appear on Beef Central next week.

Given the vast footprint that Angus cattle now have across southern and parts of northern Australia, any lack of support for MLA’s multi-breed EBV plans would seriously undermine the project, Beef Central has been told.

Angus Australia’s concerns about MLA’s proposal were not principally about the science, but rather how such an evaluation might ultimately be commercialised and what that could mean for registered seedstock producers.

The broader strategic issue was not simply about who has the right to use research data, but how that information may ultimately be used commercially, and whether the interests of registered seedstock producers will be adequately considered and protected.

The Angus Australia board and management has sought further information about the MLA’s proposed business model and its potential implications. Part of that had sought clarification about the potential role of commercial genomic DNA testing companies in delivering breeding values. One possibility of concern was that high-accuracy breeding values could eventually be marketed for unregistered or composite cattle outside established breed society systems.

Angus Australia’s Scott Wright earlier outlined to members the importance of “protecting the value created by registered Angus breeders and the broader Angus supply chain,” responsible for many of the nation’s largest and most successful commercial beef brands.

“Since writing that, there have been further developments, and I believe it is important to keep members informed about where matters currently stand, what we are seeking to achieve and the decisions that lie ahead,” he said.

Future of genetic evaluation

Mr Wright said there had been considerable discussion occurring across the industry about the future of genetic evaluation.

“Some of that has been public, while much has taken place between breed societies, research organisations and industry bodies. I appreciate these matters can appear complex, particularly when discussions turn to genetic evaluation technology, intellectual property, data ownership and commercialisation arrangements,” he said.

However, the underlying questions were relatively straightforward:

• Who will control the genetic evaluation systems of the future? How will they operate commercially? And what will the consequences be for the breeders who have invested in registered genetics over many generations?
• What is the industry trying to achieve?

“These are questions that Angus Australia is taking very seriously,” Mr Wright told members.

Before discussing MLA’s proposals, he stepped-through Angus Australia’s own strategic direction.

“Our objective is to deliver the best possible Angus-specific genetic evaluation for Australian Angus breeders, while protecting the integrity and commercial value of registered Angus genetics,” he said.

“Importantly, this direction is not new, nor is it simply a response to MLA’s proposed multi-breed evaluation. It is firmly established in Angus Australia’s Five-Year Strategic Plan.

One of AA’s Critical Objectives in its current Strategic Plan was to achieve genetic improvement in Angus and Angus Influenced cattle in member herds. Supporting this objective are three clearly defined key outcomes:

• Genetic Evaluation Service: To provide market leading Genetic Evaluation services and associated decision support tools to Angus and Angus Influenced cattle, both seedstock and commercial, in Australia and New Zealand.
• Genetic Evaluation Control: To have control over our Genetic Evaluation services and capability, both independently and through collaboration with third party providers.
• Genetic Evaluation Efficiency: To enhance the efficiency of our Genetic Evaluation services, resulting in reduced turn-around times, and improved cost-benefit.

“It is important that members understand these objectives because they explain much of the work Angus Australia has undertaken over recent years,” Mr Wright said.

“Our investment in Angus GenetiQ is a direct expression of this strategic direction. We have sought to develop a genetic evaluation capability that delivers world-class outcomes for Angus breeders, provides Angus Australia with greater control over its future, and improves the efficiency and cost-effectiveness of the services we deliver.”

Importantly, Angus Australia’s Strategic Plan recognised that this capability could be developed both independently and through collaboration with third-party providers.

“Independence does not mean isolation, nor does it preclude constructive industry partnerships. It means retaining the ability to make decisions in the best interests of our members,” he said.

The Strategic Plan also recognised that the breed society’s responsibilities extended beyond registered seedstock to Angus-influenced cattle and commercial producers in both Australia and New Zealand.

“This is an important distinction,” Mr Wright said. “Angus Australia is not simply seeking to preserve existing arrangements. We are seeking to improve and expand the genetic evaluation services and decision-support tools available to Angus breeders and the wider commercial beef industry.”

“For more than 30 years, Angus breeders have invested heavily in pedigree recording, performance measurement, genomics and genetic improvement. That investment has created enormous value, not only for seedstock breeders but throughout the Australian beef supply chain.

“Our responsibility is to build on that investment, continue advancing genetic improvement and ensure that Angus Australia retains the capability and financial sustainability to serve future generations of breeders.”

“Our strategy is therefore not defined by MLA’s multi-breed ambition. It is defined by our own Five-Year Strategic Plan and our commitment to delivering better genetic evaluation, greater strategic control and improved efficiency for our members.

Where is MLA’s multi-breed proposal up to?

Mr Wright said MLA continued to progress its own ambition to develop a national multi-breed genetic evaluation.

Angus Australia had been involved in discussions regarding the initiative, and its Board and management had sought further information about the proposed business model and its potential implications.

“We recognise that multi-breed genetic evaluation may offer scientific and technical opportunities, particularly in evaluating animals across different breed populations.

“Our concerns are not principally about the science, but rather how such an evaluation might ultimately be commercialised and what that could mean for registered seedstock producers,” Mr Wright said.

“In particular, we have been seeking clarification about the potential role of commercial genomic DNA testing companies in delivering breeding values. One possibility that concerns us is that high-accuracy breeding values could eventually be marketed for unregistered or composite cattle outside established breed society systems.”

“If this were to occur, it could change the competitive environment for registered seedstock producers,” he said.

Registered Angus breeders invested considerable resources in maintaining pedigrees, performance recording, undertaking genomic testing and participating in genetic improvement programs, Mr Wright said.

“These activities have costs, but they also create substantial value and confidence for purchasers of registered Angus genetics. We believe it is reasonable to ask whether a new commercial evaluation model could allow others to benefit from that accumulated investment without making equivalent contributions.

“This is not an assertion that MLA has decided to adopt such a model. It is a potential consequence that we believe needs to be properly examined before decisions are made.”

Angus Australia had asked MLA for a comprehensive business case, including greater clarity about commercialisation, governance and the potential effects on registered cattle breeders.

“Those questions remain important and, in our view, have not yet been adequately answered,” he said.

Recent development concerning ASBP data

One of the more significant recent developments concerns the Angus Sire Benchmarking Program (ASBP), which makes an important contribution to Angus genetic improvement.

The program represents a substantial research investment by Angus Australia and MLA, generating valuable performance, genomic and other information that contributes to more accurate genetic evaluation. MLA has requested that Angus Australia provide data developed through earlier ASBP projects for use in its proposed multi-breed evaluation.

“However, there is a broader strategic issue,” Mr Wright said. “Our concern is not simply about who has the right to use research data. It is about how that information may ultimately be used commercially, and whether the interests of registered seedstock producers will be adequately considered and protected.”

Angus Australia remained committed to collaborative research and to ensuring that research investment generates the greatest possible benefit for cattle breeders, he said.

“However, we also have a responsibility to understand the consequences of major changes to the commercial structures supporting genetic improvement.”

“We will continue to seek appropriate clarity from MLA while addressing our contractual obligations through the proper processes.”

Where does Angus GenetiQ fit in?

Against this changing industry background, Angus Australia has been investing in the development of Angus GenetiQ – the breed’s own Angus-specific genetic evaluation capability, designed to deliver accurate, efficient and commercially relevant breeding values to members.

“This has been a deliberate strategic decision, consistent with the objectives established in our Five-Year Strategic Plan,” Mr Wright said.

“When the Angus GenetiQ project was commenced, Angus Australia did not have long-term security in its access to BreedPlan. It provides the opportunity to continue advancing Angus genetic improvement while giving Angus Australia greater influence over the development, operation and future direction of our evaluation,” he said.

It also provided the potential to improve the efficiency of genetic evaluation, reduce turnaround times and deliver better value to members, consistent with the three key outcomes in AA’s Strategic Plan.

Importantly, Angus GenetiQ was not simply a ‘reaction’ to MLA’s multi-breed proposal, Mr Wright stressed.

“It is an investment in the long-term capability and sustainability of Angus Australia,” he said.

“Our technical team has made substantial progress in developing the evaluation, and we are now approaching an important stage in its assessment.”

He said no decision had yet been made to replace BreedPlan with Angus GenetiQ as the breed’s primary genetic evaluation.

“However, I believe the investment we have made in Angus GenetiQ has placed Angus Australia in a stronger strategic position. It gives us a genuine alternative and the ability to make decisions based on what is best for Angus breeders,” Mr Wright said.

More to Angus than an EBV

In earlier commentary, Mr Wright discussed the broader value of Angus and the collective contribution made by everyone throughout the Angus supply chain. He described how research, genetic improvement, seedstock production, commercial cattle breeding, feeding, processing, beef brands and the consumer experience all contributed to the value associated with Angus.

“I made the point that no single organisation owns the commercial value of Angus,” he said.

“It has been created collectively over generations. I believe that observation is particularly relevant to our present circumstances. The value of registered Angus genetics is not simply a numerical breeding value. An EBV is an important tool, but it is only one part of a much broader system.

“That system includes pedigree integrity, performance recording, genomics, research, genetic evaluation, breeder accountability and the confidence commercial cattle producers place in registered Angus genetics.

“It also includes the reputation of Angus beef and the premiums that have developed throughout the supply chain. We have described this broader proposition as The Angus Value System.

“Our responsibility is to protect and strengthen that system, because it is ultimately what underpins the value of registered Angus genetics.”

“That remains an important guiding principle as we consider the future of genetic evaluation.

What happens next?

The Angus Australia Board was approaching an important period of decision-making, Mr Wright told members.

“Over the coming weeks, we will continue assessing the future of our genetic evaluation arrangements, including the potential adoption of Angus GenetiQ as our primary evaluation.

“We will also continue seeking greater transparency from MLA regarding its proposed multi-breed evaluation, particularly the commercial model, governance arrangements and potential consequences for registered seedstock producers.”

Any decision by Angus Australia to abandon BreedPlan as its primary evaluation source would place BreedPlan in financial jeopardy, Beef Central has been told, because Angus registrations are the dominant source of income for the service. Another large beef breed, the Australian Wagyu Association last year departed from BreedPlan to establish its own primary genetic evaluation facility.  

Issue impacts other breeds

The issues outlined above extended beyond Angus Australia, Mr Wright said.

“Other registered breed societies face similar questions, and we believe there is a legitimate need for wider industry discussion. We intend to engage with Cattle Australia, other breed societies and relevant industry stakeholders to ensure these matters receive appropriate consideration.”

Mr Wright said it was recognised that some members held differing views about the future of genetic evaluation.

“Some may see significant opportunities in multi-breed evaluation. Others will be concerned about the implications for registered seedstock. Both perspectives deserve consideration,” he said.

“Our responsibility is to make informed decisions based on evidence, the long-term interests of members and the future sustainability of Angus Australia.”

“Angus Australia cannot necessarily determine the strategic direction taken by MLA or other industry organisations. We can, however, determine our own direction.

“Our future should not be defined simply by our response to MLA’s multi-breed ambition. It should be defined by our commitment to delivering the best possible genetic evaluation, strengthening the Angus System and ensuring that registered Angus breeders continue to prosper.

“Our objective remains clear: to achieve genetic improvement in Angus and Angus-influenced cattle through market-leading genetic evaluation, supported by greater strategic control, improved efficiency and a strong, independent and sustainable Angus Australia, while protecting and strengthening the value of registered Angus genetics.”

• Beef Central has sought a response from MLA. Any reply will be added here.