Liberty Genetics - 15 years of Industry Impact 2013 marks the 15th birthday of Liberty Genetics Ltd and in that time there has been both genetic and industry impact well beyond the expectations of the founding farmers. In 1998, there were nine foundation shareholders, farmers that represented successful breeding herds in both main breeds, plus some larger scale commercial operators, who identified a more cost effective and efficient model to deliver genetic gain. They had received advice from Dr Dorian Garrick, then Professor of Genetics at Massey University and a driver in the development of the NZ Animal Model for the dairy industry, that an elite young sire program would deliver genetic gain as effectively as proven sires. This also provided an opportunity for bull breeders, to get additional top young sires proven. Liberty Genetics has continued to successfully balance the interests of the two sectors of the industry to gain a sustainable growing niche in the market. The marketing of young sires is now widespread across the global dairy industry, encouraged by the development of genomics to enhance the estimated genetic merit of the young sires. However, at this stage it does not appear that genomics has delivered much additional accuracy, over and above well recorded ancestry data. "At this stage Liberty Genetics does not add value for our clients", explains Chairman Kevin Buckley. The original share holders included well known Friesian Breeders; Kevin Buckley (Bucklin), and Lawrence Satherley (Joyclas) plus Jersey breeders; Mark Townshend, Derek Black, Gary Townshend and Simon Gibson. The more commercial sector representatives included consultant Wayne Stachurski, and dairy farmers Grant Billington and John Holwerda. Over time the shareholder base grew to include other active Holstein members; Raeden Jackson (Valden) , Kevin Clark (Glenmead), Ian Elliott (Elliotts), John Kennedy (Whinlea), HSS Partnership (Smit/Fullerton/Hall), Stewart Anderson (as part of EDGE), and Todd Anderson (Tralee). Other corporate farmer shareholders included several current or ex-Fonterra and DairyNZ directors, ensuring that Liberty Genetics had a broad base of industry support. All shareholders (34 by mid 2011) had an equal shareholding, creating a cooperative culture, striving to provide a healthy return to bull breeders, while delivering excellent value and competitive genetic gain for the customers. An unintended consequence of this start up was the defensive competitor response to establish intellectual property protection over sires, and to tighten the participation rules for LIC customers. This was an unwelcome development for breeders then and is still a significant barrier for competition in the AB industry. The IP constraint did not prevent Liberty Genetics from delivering strong sire teams with some outstanding graduation results. Currently 9 Liberty bulls feature on the RAS list (8% of available places), a high impact while operating between 3-5% market share. 102766 SRB Ngaio Hugo Fluke was the breakthrough Friesian breed leader for Liberty Genetics, transmitting an excellent balance of dairy strength and style. He was followed by 104658 Bagworth Kalumburu who delivered robust, top production daughters. More recently 108818 Marchel Fire Macca OC S2F has grabbed the limelight as a top production sire with superb TOP and management traits. He is supported by another well proven Firenze son, 109805 Lightburn Fireraze-ET S2F, also siring attractive udder traits. Several other bulls listed in the table below have made a contribution as a proven sire. Initially the proofs for Fluke and Kalumburu were low on daughter numbers, but now the Liberty bulls graduate with outstanding numbers of production daughters, born and farmed in larger commercial herds. Proofs with 200+ commercial daughters should ensure that genetic evaluations of these bulls are stable, and are less vulnerable to a reproof drop that is common in the industry as bulls move from relatively pure "sire proving proofs" to "widespread" proof. AB code Name Most Popular Liberty sires 102766 SRB NGAIO HUGO FLUKE 104658 BAGWORTH KALUMBURU 108818 MARCHEL FIRE MACCA-OC S2F 109805 LIGHTBURN FIRERAZE-ET S2F Others marketed as Proven Sires 108809 MAIRE FIRE WILLIAM-ET S2F 108808 WHINLEA FIRE ELOQUENT-ET 107804 VALDEN P TURBO-ET S3F 104659 WEBBLEA JB DAVID S2F 105800 BUCKLIN PIERRES UTU S2F 102766 Ngaio Hugo Fluke Breedi BW Herd Udder ng Reliab Protein tested Capacity Overall Worth ility BV dtrs BV BV Dairy Confor mation BV AB Code of Sire 128 231 241 229 99 95 94 90 26 23035 40 745 37 504 35 325 0.50 0.47 0.38 -0.07 0.44 -0.09 0.93 0.53 0.68 0.30 0.58 0.19 96329 663962 103505 103505 206 179 170 158 154 87 86 89 94 86 31 30 30 26 19 -0.24 0.11 0.29 0.00 -0.07 0.23 0.45 0.49 0.73 0.74 0.10 0.33 0.40 0.09 0.03 103505 103505 672213 663930 672213 157 148 193 449 114 108818 Marchel Fire Macca OC S2F Liberty Genetics has contributed substantially to AB industry evolution over the last 10 years, including the enabling the introduction of commercial sexed semen production, and strong support for the independent governance and management of NZ Animal Evaluation under DairyNZ governance. These efforts included strong submissions and support for implementation of the DIGAD database, which should soon be another industry milestone. In 2009 Liberty Genetics and Animal Breeding Services collaborated to get funding for a substantial sexed semen trial which enabled Sexing Technologies to justify setting up a lab in NZ. They committed for the long term, becoming a shareholder in Animal Breeding Services (2007) Ltd. Kevin Buckley was a Director from the formation of the company, and has been Chairman since 2002. Originally the business was run by Diane Townshend and Lin Buckley, and the business grew steadily to sell 30,000 straws by 2002, and topped 80,000 by 2006. In late 2006 David Hayman joined the business as Managing Director, and rapid growth was supported by the establishment of the AB technician service StockMates. In 2009 the business recorded sales close to 230,000 straws of which 15% was export sales, generating substantial royalty income to the bull owners. By this stage graduate bull royalties from CRV Ambreed sales of Liberty proven sires, (including leading light Ngaio Hugo Fluke) were also making a further significant contribution to breeder income. Liberty Genetics has had a strong relationship with Ambreed NZ Ltd, since the formation of the business. At various stages the relationship included production and distribution by Ambreed, and a joint marketing agreement for marketing the proven sires. This relationship continued to evolve after CRV purchased Ambreed, and in 2012 it culminated in CRV purchasing Liberty Genetics Ltd. However, this sale agreement was based on the assurance that the Liberty Genetics business model would continue to target the same market niche, with on-going farmer representation on the Board of Directors. It is clear that Liberty has stimulated competition and cost savings for farmers, while delivering additional genetic gain from genetic leaders that otherwise may not have been discovered.No doubt the pace of change in the AB industry will not slow down over the next 10 or 15 years, but it is certain that breeders with a passion for herd improvement and sire development will continue to add value and impact in the dairy industry through initiatives like Liberty Genetics Ltd. Kevin and Lin Buckley, at 10th Liberty Genetics AGM 109805 Lightburn Fireraze-ET S2F