Project Concept Note:
Animal Breeding and Reproduction Technology
Platform
Table of Contents
1
Introduction .................................................................................................................................... 3
2
Key Development issues and Rationale for TIA involvement ......................................................... 5
3
Proposed Project Development Objective(s).................................................................................. 7
4
Preliminary Project Description ...................................................................................................... 9
5
Potential Risk and Mitigation ........................................................................................................ 10
1
Introduction
The SA commercial livestock industry is highly sophisticated and implements appropriate
technologies to ensure good value for the South African consumer. However the industry is no
longer able to keep up with local demand and meat imports have been steadily increasing over time.
Graph 1 reflects all meat imports between 2001 and 2011, of which 80% is poultry. Graph 2 below
shows that SA is also unable to meet the demand for beef.
Meat imports into SA (tons)
500000
450000
400000
350000
300000
250000
200000
150000
100000
50000
0
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Graph 1: Total meat imports into South Africa between 2001 and 2011 (from Trade Map 2012)
Graph 2: Beef Production vs Beef Consumption in SA between 2000 and 2010 (from: ‘A Profile of
the SA Beef Market Value Chain 2012’ – DAFF)
Currently the livestock sector contributes about 40% of the total value of agricultural output in SA.
The data might suggest that livestock production in the country is quite stable, and imports make up
for any shortfalls. It is however worthwhile considering some factors on the strategic potential of
this sector.
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It is estimated that almost 80% of the country is considered semi-arid with inadequate or
unreliable rainfall to sustain crop production. The South African climate and vast grassland
resources are highly suited to livestock production, thus as a country we are not effectively
utilising an important competitive advantage.
About 40% of the national cattle herd is owned by small-scale rural farmers, yet only 10% of
this is reflected in the annual commercial off-take. This would suggest that there is huge
potential to improve farming and market systems for small-scale livestock farmers and
thereby facilitate socio-economic development.
South African indigenous farm animal breeds have not been adequately conserved and risk
extinction in some cases. Certain breeds like the boer goat have been used in breeding
improvement schemes internationally but are not sufficiently utilised in SA.
South African livestock improvement schemes have been running since 1917 and have
established an excellent database of phenotypic data. However phenotypic data has not
been augmented with genotypic information to update the estimated breeding value
system. The livestock industry therefore has not yet benefitted from increased rates of herd
improvement that can be achieved from the recent advancements of molecular genetic
technologies. In this case we are not adequately leveraging a competitive advantage that
the country has strategically invested in over a long period.
SA has a competitive advantage in Africa having adapted breeds to prevailing African
conditions and pests. As countries in Africa invest in the development of their agricultural
sectors, SA can play a strategic role in supplying the African market with appropriate genetic
material and technologies.
South Africa has the potential to grow the livestock industry significantly and could
ultimately become a net exporter of high quality genetic resources, meat, animal products
and value-added animal products.
The purpose of this document is to discuss the establishment of an Animal Breeding and
Reproduction Technology Platform that will provide an institutional framework to facilitate
achievement of various objectives to assist the livestock industry as a whole. The initial phase will be
to conduct a feasibility study and engage stakeholders on current resources, gaps and priorities for
the industry. This document provides a situational analysis, suggests a process to be followed and
estimates the costs that would be involved. It is hoped that this will be approved for
implementation by TIA EXCO.
2
Key Development issues and Rationale for TIA involvement
There are various initiatives underway to support the livestock industry. These include market
infrastructure, trade support, veld improvement strategies etc. Solid genetic and breeding capability
is the foundation of a strong livestock industry. Thus, the area that TIA will have greatest
opportunity to make a meaningful contribution would be in facilitating the establishment of a
Breeding and Reproduction Technology Platform. This would be an institutional structure that
would prioritize research based on industry needs, leverage funding for research and ensure
technology transfer. The discussion below illustrates the current strategies and initiatives underway.
The Department of Agriculture, Fisheries and Forestry (DAFF)
The Department of Agriculture, Fisheries and Forestry (DAFF) published the Livestock Development
Strategy in 2007. The Strategy noted “Research and Development” as a key factor in creating an
enabling environment for the industry. It further noted “Biological efficiency of livestock” as a key
element. Strategic interventions for that element would concentrate on:
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Research and Development on sustainable systems for livestock production
Reproductive efficiency, growth and development
Genetic improvement and enhanced genetic variation
Improved efficiency, animal nutrition
DNA technology and services
Technologies for diagnostics, services and research
Integrated livestock and crop systems (especially in communal and resource poor farming
areas, e.g. Kwa-Zulu Natal, Limpopo, North West and Eastern Cape), animal health and the
management of animal waste
Consortium for Genomics in the Livestock Sector
In February 2012 key stakeholders from government, academia and industry met to consider
“Genomics in the livestock sector”. The participants established an important foundation towards
creating a consortium with objectives to:
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Improve the livestock industry in South Africa through the use of genomic selection to
improve the breeding of the animals.
Establish the ability and capability of the South African sector to utilise this technology.
Develop both national and international collaboration in the field of genomics
The consortium also agreed a high level 5-step process for implementing genomic selection
Phenotypic
data
Genotypic
data
Products/
services
Analyse and
validate
Educate and
extend
Exploit
The National Scheme for Performance Recording
Currently selection of breeding lines is based on phenotypic selection and the calculation of
Estimated Breeding Values (EBV’s). These values are based on the performance of progeny across
certain traits. Performance testing is recognised as a very effective tool for increasing economic
returns of livestock production. However it is dependent on the time it takes for each generation to
go through reproductive and productive cycles and therefore improvements tend to be seen after
significant time investment as demonstrated in Graph 3.
Figure 4 : Guernsey - Genetic trends for Milk, Butterfat and Protein Yields
250
8
200
6
150
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50
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0
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Milk
Butterfat
Protein
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Milk (kg)
Estimated Breeding Values
2
Year of Birth
Graph 3: Guernsey – Genetic trends for milk, butterfat and protein yields
The Agricultural Research Council (ARC) – Irene has been collating these records since 1917 in the
case of dairy cows, and in later years for beef cattle (since 1959), pigs (since 1955) and sheep (since
1965). This database provides the foundation for the National Scheme for Performance Recording
for South Africa.
Most modern breeding programmes augment phenotypic selection together with genetic selection
to calculate Genomic Estimated Breeding Values (GEBV). The GEBV helps to speed up the selection
of genetically superior breeding lines. Instead of waiting a minimum of 4 years Artificial Insemination
companies can use the best DNA tested as sires of sons as soon as they reach sexual maturity (about
1 year). This is considerable time saving in herd improvement and the benefits of this method have
been reported in the Australian, French and American Dairy Cattle Industries.
The ARC Molecular Genetics Platform
Butterfat and Protein (kg)
100
The ARC has established a molecular genetics platform at their facility in Onderstepoort. The facility
has been fully equipped to enable sophisticated molecular genetics research. The facility is to be
used by ARC, academic and industry based researchers. The availability of the equipment and
expertise makes the operational activities of conducting the necessary research achievable in a
relatively short space of time.
TIA
The livestock industry needs to have access to resources that would enable the effective usage of
genetic selection techniques to improve key traits in SA farm animals. However this is a costly and
complex activity that needs animal science, molecular biology and computational biology skills to
effectively utilise research information. Appropriate technology transfer mechanisms will then need
to be deployed and the benefits recovered. TIA through its deep and extensive engagement in the
biotechnology sector is ideally positioned to facilitate this.
TIA will be able to draw the various stakeholders together to focus objectives, leverage funding to
ensure greater investment and promote effective management of the consortium towards
technology development and commercialisation. TIA is also an objective facilitator because it is not
directly involved in the industry, and agriculture is only one of its multiple areas of investment. TIA
would be able to bring together both public and private sector investors and ensure technology
diffusion to both public and private sector beneficiaries. TIA, as an organisation, is thus ideally suited
to facilitate the establishment of the Animal Breeding and Reproduction Technology Platform.
3
Proposed Project Development Objective(s)
The Agri-Biotech sector proposes that an intensive feasibility study be conducted. The investigators
will consult all major stakeholders in the private sector, public sector, academia, and in relevant
community based structures. An assessment of current resources and gaps in the livestock industry,
with respect to genetics, breeding and reproduction, will need to be done. This study will ultimately
provide an assessment of the pressing issues facing the sector and suggest an institutional structure
and mechanisms to enable the achievement of the objectives. The Business Case for the
establishment of the Animal Breeding and Reproduction Technology Platform will be derived from
the feasibility study and presented to EXCO.
The Animal Breeding and Reproduction Technology Platform, if successful will provide an efficient
institutional structure that will:
1) Prioritize research in genetics and animal breeding towards industry needs;
2) Ensure long term improvement and sustainability of the SA livestock industry;
3) Ensure effective transfer of technology from research environments to farmers, processors
and retailers;
4) Ensure capacity development, training and skills development programmes are in place to
provide for the needs scientific and technical needs of the industry;
5) Provide a financial mechanism for both government and private sector to contribute funding
and ensure that funds are used effectively to the benefit of the SA producer and consumer;
6) Have a structured impact analysis capability to ensure that achievements towards the set
objectives of the initiative are always monitored and reported to key stakeholders who can
then actively direct necessary change.
The diagram below suggests that consumer demand for good quality and value will drive the
selection process of for research investment within the platform. The outputs of the
research will be targeted towards producers who will realise production improvements and
be able to deliver towards meeting consumer demand.
CONSUMERS
DAIRY
INDUSTRY
BREEDING TECHNOLOGIES
FACTORS
FARMER / PRODUCER
Provide direction on production challenges
Provide evaluation on technology performance
PRODUCTIVITY
FACTORS
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HIDE
PROCESSORS
HEALTH
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FIBRE
PROCESSORS
FACTORS
MEAT
PROCESSOR
NUTRITION
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RETAILERS
 Provide direction on market demands
Provide direction on new market opportunities (local/foreign)
REPRODUCTIVE TECHNOLOGIES
Science councils, Universities, NGO’s
Science councils, Universities, NGO’s
(molecular techniques, marker assisted breeding)
(artificial insemination, embryo transfer, etc.)
ARC BIOTECHNOLOGY PLATFORM
4
Preliminary Project Description
Feasibility Study
Q2 2012/13
Business Case
Q4 2012/13
Implementation
Q1 2013/14
• Seek TIA EXCO approval to fund benchmarking,
industry consultation and feasibility study for the
Animal Breeding and Reproduction Platform
• Present Business Case on the Animal Breeding and
Reproduction Platform to TIA for approval
• The initial opertional activities of the Animal
Breeding and Reproduction Platform will commence
4.1 Feasibility Study
It is proposed that The Animal Breeding and Reproduction Technology Platform will be established
to provide academia, government and industry with access to a network of technologies and
expertise. This will assist with the strategic development of animal production capability in South
Afria, towards meeting expanding local and international market demand for good quality protein
sources and other animal products.
There is currently limited investment in biotechnology based animal improvement in South Africa.
From a TIA perspective the Agri-Biotechnology investment portfolio is heavily skewed towards plant
product investments.
There is a need to assist the animal production sector by enabling the use of biotechnology tools
such as marker assisted breeding and genomic selection towards improving the genetic resource
base that farmers utilise.
In order to develop an optimal structure, function and operational framework we need to
understand the following aspects:
1) What are the international models of best practice and what are the lessons we can learn
from them? The EU platform hosted at INRA, France and the Australian Beef CRC have been
identified as some of the best models with effective industry participation and leadership.
2) What are the current resources available in SA that will assist this initiative?
3) What are the current gaps in implementing the initiative and how can they be resolved?
4) Who are the major stakeholders, what are their requirements, concerns and potential
commitments towards this initiative?
5) What would the Platform’s objectives be? How would these objectives be set, prioritised
and reprioritised if necessary?
6) How would the platform operationalize its work and achieve its objectives? What
mechanisms will be in place to develop effective strategies to enable industry to set the
research priorities such that it delivers research, technologies and products that are
demanded by the market?
7) What are the existing structures, programmes and initiatives that the Platform needs to be
linked with in order to integrate effectively into the SA livestock production sector?
8) How will the platform invest in technology transfer?
9) Would it be possible to invest in some technologies that already exist or are close to
market? In this way technology transfer mechanisms can be implemented, tested and
prepared to deliver medium and long term research and development outputs through the
most effective mechanisms.
10) What are the impact measures that need to be monitored immediately, in the short,
medium and long term to determine if the Platform is indeed achieving its objectives?
In order to answer these questions it is proposed that a feasibility study be commissioned. The study
will involve benchmarking, gap analysis, stakeholder analysis and discussion of the institutional
options that can followed. The study will also make assessments on the funding that will be required
to operationalise the platform and present co-financing options. It will have to present both local
and international co-funders and donors. The study will also present the criteria for conducting
impact assessments on the effectiveness of the Platform once it has been implemented. It is
proposed that TIA fund this feasibility in full to the value of R1, 000, 000. The budget is discussed in
Section 7 below.
4.2 Business Case
The feasibility study will then guide the development of a Business Case. The Business Case will
address the issues required by TIA to facilitate the establishment of a platform and follow the
required processes to achieve this. It is envisaged that the Business Case will be presented to EXCO
during Quarter 4 2012/13.
5
Potential Risk and Mitigation
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One of the most significant risks faced by the project is that there may be inadequate buy-in
from the livestock production industry. If the strategic objectives of the Platform are not
carefully developed with full participation of industry and farmers (the potential end users),
the Platform risks becoming an academic endeavour as a result, there would be limited
beneficial technology transfer opportunities. To prevent this from happening, the various
industry players will have to be engaged at the outset and continued participation
throughout the feasibility and implementation process will be sought. Industry together with
other stakeholders will be consulted in the development of impact assessment measures
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which will be used to monitor the project and ensure that it does indeed achieve the
objectives set by the stakeholders. Furthermore, during the implementation phase industry
players will play an important role in prioritising and guiding research activities, thus
ensuring direct value of the platform to industry.
Another risk that presents during the implementation phase is, whether or not the platform
would be able to access adequate funding to run sustainably over a significant multi year
period to ensure that appropriate outcomes are achieved. If adequate funding is not
available the output and ultimate impact of the Platform would be sorely compromised. This
will be mitigated by ensuring substantial industry buy-in and by seeking local and
international donor support. We will also involve the best scientists in the industry to lend
credibility that would attract the necessary sponsorship.
Small-scale farmers are often identified as the beneficiaries of various research and
development programmes, yet the consultation and technology transfer processes that are
implemented do not facilitate this. Thus the central beneficiaries are completely excluded
and technology adoption and diffusion is not achieved. The risk with the Animal Breeding
and Reproduction Technology platform is that small-scale farmers may not experience direct
benefit. By highlighting the small-scale farmer plight within the objectives of the platform,
engaging with organised groups and monitoring and evaluating research and technology
output regularly we will be able to mitigate this risk.
The Platform would need to develop a position on intellectual property protection in the
livestock industry where no specific legal instruments exist in SA to protect genetic
improvements. There is potential that much will be achieved within the Animal Breeding
and Reproduction Technology Platform but there would be limited protected IP output.
Preferred institutional and governance structures that the Platform should clearly reduce
financial, regulatory and other risks.