Angus Genetic Trend Comparison: B3 Index Trends 35 30 25 USA Aust 20 NZ 15 CAN 10 UK 5 0 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 This chart shows trends in different countries for the B3 Index – which expresses overall genetic merit for cows and their progeny in herds where the steer progeny are taken on the B3 market, and heifer progeny retained. As an example, the Australian value of $26 for 2006 tells us that the total earnings from mating an average 2006 drop Australian Angus bull are $26 per cow joined higher than joined to an average 1996 drop Australian Angus bull. The chart overpage shows a simple estimate of the trend in on-farm income due to genetic change in beef cattle through BREEDPLAN. The story is pretty much the same as for sheep – although the traits being improved are a different set. Also note that because the period is shorter (1996-2009), the annual increment has not grown as far as it has for sheep. This is also because it is in fact harder to make genetic improvement as fast in beef cattle as in meat sheep, primarily because beef cattle have a longer generation interval. Nevertheless: - - the trend in beef cattle is accelerating – partly because has MLA has stimulated people to think about genetic improvement much more clearly the total value-added due to beef genetic improvement over the period 19962009 is c. $385m, way more than 10 years of R&D funding, and probably about 5 years total industry investment in R&D and marketing. I am quite confident that the annual increment is going to rise quite sharply over the next few years, and will get up to $15-20m per year, so that within a few years (maybe about 5), genetic improvement will be more than paying for MLA’s beef activities. Aggregate On-Farm Value of Genetic Improvement 180 160 Aggregate On-Farm Value ($m) 140 120 100 80 60 40 20 0 1997 1998 1999 2000 2001 2002 2003 Year of Drop 2004 2005 2006 2007 2008 2009