ROLE OF COMPOSITES IN FUTURE BEEF PRODUCTION SYSTEMS Harlan Ritchie Michigan State University East Lansing, MI 48824 CROSSBREEDING REASONS FOR CROSSBREEDING Breed complementarity - Matching cattle to the production environment - Matching cattle to market specifications Heterosis (hybrid vigor) “The challenge is this: How can I build a good cow herd, a good factory, that is reproductively efficient in my environment and still make good carcasses out of that factory?” Kent Andersen COW PHOTO IN ARIZONA DESERT PHOTO OF COWS IN FLORIDA EXAMPLES OF MATCHING BREEDTYPES TO MARKET TARGETS Up-scale restaurants & export, Mid Choice and higher: British X British 3/4 British x 1/4 Continental Retail supermarkets & mid-scale restaurants, High Select to Low Choice: 1/2 British X 1/2 Continental Extra lean market, Select grade: 3/4 Continental X 1/4 British Continental X Continental BIOECONOMIC TRAITS IN U.S. BEEF INDUSTRY Fertility (male & female) Libido in males Calving ease Calf vigor/survival Optimum milking ability for environment Early growth, birth to market Feed conversion efficiency Optimum size for environment and marketplace Optimum maintenance requirements Heat tolerance Cold tolerance Overall efficiency within a given production environment (climate & feed resources) BIOECONOMIC TRAITS IN U.S. BEEF INDUSTRY Longevity/stayability Sound functional traits (skeleton, udder, eyes, etc.) Pigment around eyes and udder. Reasonable temperament Muscling/leanness Tenderness Marbling for juiciness & flavor Optimum size of retail cuts Solid color pattern Polled Others ? TRAITS OF PRIMARY IMPORTANCE BY INDUSTRY SEGMENT Cow herd segment Reproduction Growth Minimum maintenance cows Feeding segment Health of incoming cattle Growth Feed conversion Packer/retailer/consumer segment Lean yield Size of cuts Eating quality “In the future, there must be no ‘surprise packages’. Every steak, chop and burger must be nearly identical to the last one the consumer bought.” - A meat wholesaler at the IGA Meat Seminar SOLVING THE CONSISTENCY PROBLEM Can lack of consistency/uniformity be solved by straightbreeding? Yes, if color is the only consistency issue. Otherwise, Hybrid The no! vigor is too important to give up “Holstein” of the beef industry has not been found VALUE OF HETEROSIS IN VARIOUS CROSSBREEDING SYSTEMS Crossbreeding system Purebred Two-breed rotation Three-breed rotation Terminal sire x Fl cows Rotate bull breed every 4 yrs.: Two-breed Three breed Three-breed composite Four-breed composite Rotate Fl bulls (AB AB) a % increase in lb Lb increase calf weaned per per cow cow exposed exposed Added value ($)a 0 16% 20% 25% 0 72 lb 90 lb 113 lb 0 $64.77 $79.83 $98.41 12% 16% 15% 17% 12% 54 lb 72 lb 68 lb 76 lb 54 lb $49.26 $64.77 $61.36 $68.16 $49.26 Assuming value of 450-lb base calf wt. weaned/cow exp. @ $95 and $7/cwt price slide. SOME PROBLEMS IN ROTATIONAL CROSSBREEDING SYSTEMS Cumbersome in small herds. Too many biological types of cows in the herd. Too many biological types of progeny. Mismatches between biological type and the production environment (feed, climate, etc.) Mismatches between biological type and market requirements. Management is difficult in intensive rotational grazing systems. THE COMPOSITE CONCEPT PHOTO OF KEITH GREGORY PHOTO OF COMPOSITE BREEDS BOOK COVER PERCENTAGE OF MAXIMUM POSSIBLE HETEROSIS AMONG VARIOUS CROSSBREEDING SYSTEMS Pure breeds 2-breed rotation 3-breed rotation F1 cow and term. sire 2-breed composite 3-breed composite 4-breed composite Rotating F1 bulls: AB AB AB AD AB CD % of maximum possible heterosis 0 67 86 100 50 63 75 50 67 83 % increase in lb calf weaned/ cow exposed 0 16 20 23 12 15 17 12 16 19 MARC COMPOSITE POPULATIONS MARC I (75:25 Continental: British) 1/4 Charolais, 1/4 Limousin, 1/4 Braunvieh, 1/8 Hereford, 1/8 Angus MARC II (50:50 Continental: British) 1/4 Gelbvieh, 1/4 Simmental, 1/4 Hereford, 1/4 Angus MARC III (25:70 Continental: British) 1/4 Pinzgauer, 1/4 Simmental, 1/4 Hereford, 1/4 Angus PHOTO OF MARC I STEERS PHOTO OF MARC II STEERS PHOTO OF MARC III STEERS RETAINED HETEROSIS IN COMPOSITES a Trait Birth wt (males), lb 200-day wt (males), lb 368-day wt (males), lb Age at puberty (females), days Scrotal circumference, cm Pregnancy rate, % Calves born, % Calves weaned, % 200-d wt./cow exposed, lb aF 2, F3, and F4 generations. **p<.01. Composites minus Purebreds 5.1** 33.7** 59.8** -17** 1.1** 4.1** 3.8** 4.4** 50** Expected difference 2.5 33.3 48.3 -16 1.0 4.6 5.0 5.4 46 RETAINED HETEROSIS IN COMPOSITESa Trait Final slaughter wt., lb Avg. daily gain, lb Carcass wt., lb Dressing percentage, % Fat thickness, in. Ribeye area, sq. in. KPH fat, % Marbling score aF generation progeny. 3 ** p< .01. Composites minus Purebreds 50.3** 0.6** 32.6** .17 .02 .48** .30** .05 RETAINED HETEROSIS IN COMPOSITESa Trait Retail product % Retail product, lb Fat trim, % Fat trim, lb Chemical fat in 9-11 rib cut Shear force, lb Sensory tenderness score aF generation progeny. 3 ** p< .01. Composites minus Purebreds -.97** 13.7** 1.28** 16.5** 1.23** .09 -.02 RETAINED HETEROSIS IN COMPOSITES Composites minus Trait Purebreds Cow wt. (2-7 yr. or more), lb 42** Cow condition score .3* Cow wt. adj. for condition score, lb 30** 200-day milk yield, lb 574** 200-day wt. of calves, lb 34** 200-day wt. of calves adj. for milk 14* * p <.05. ** p <.01. PHENOTYPIC COEFFICIENTS OF VARIATION (CV) FOR GROWTH AND CARCASS TRAITS OF STEERS Trait Purebreds Composites CV a,b Birth wt. 200-day wean. wt. 438-day slaughter wt. Ribeye area % of fat trim % bone % retail product Shear force aCV=Standard b .12 .12 .08 .10 .19 .07 .04 .22 Deviation divided by Mean. Values not statistically different. .13 .11 .08 .10 .20 .07 .06 .21 PHENOTYPIC COEFFICIENTS OF VARIATION (CV) FOR PRODUCTION TRAITS OF FEMALES Trait Purebreds Composites CV a,b Gestation length .01 Birth wt. .11 Preweaning ADG .09 Weight, 1 yr. .08 Weight, 2 yr. .07 Weight, 3 yr. .08 Weight, 4 yr. .08 Weight, 5 yr. .03 Puberty age .08 aCV=Standard Deviation divided by Mean. b Values not statistically different. .01 .12 .09 .08 .08 .08 .08 .03 .07 PHENOTYPIC COEFFICIENTS OF VARIATION (CV) FOR PRODUCTION TRAITS OF BULLS Trait Purebreds Composites CV a,b Gestation length Birth wt. Preweaning ADG 200-day wean. wt. Postweaning ADG 368-day wt. 368-day ht. 368-day scrotal circ. aCV=Standard b .01 .11 .10 .09 .11 .08 .03 .07 Deviation divided by Mean. Values not statistically different. .01 .12 .11 .09 .11 .08 .03 .07 VARIATION IN COMPOSITES VS. PUREBREDSa Estimates of genetic standard deviations and phenotypic coefficients of variation were similar for parental purebreds and composite populations for most traits. Estimates of heritability were similar for purebreds and composites. Thus, no increase in genetic variation was observed in composites. The similarity of genetic variation for composites and purebreds is believed to result from the large number of genes affecting major quantitative traits. Therefore, composite populations have a relatively high degree of uniformity for quantitative traits both within and between generations. aGregory et al. (1999) MAJOR CONCLUSIONS FROM MARC COMPOSITE STUDYa Composite breeds provide a simple means to use high levels of heterosis. Composites are a highly effective way to use breed differences (complementarity) to achieve and maintain optimum breed composition for production and carcass traits. Composites have similar uniformity for production and carcass traits both within and between generations. Composites offer herds of any size an opportunity to simultaneously use high levels of heterosis and breed complementarity. aGregory et al. (1999). COMPOSITE DEVELOPMENT Selecting the parent breeds: Critical step Define how composite will be used Exploit breed differences (complementarity) Pay special attention to lowly heritable traits and/or traits hard to measure (e.g., temperament, structural traits, etc.) CARCASS TRAITS OF TWO PUREBRED BRITISH BREEDS AND SIX PUREBRED CONTINENTAL BREEDS HARVESTED AT 438 DAYS OF AGE a Trait Harvest wt., lb Carcass wt., lb Adj. Fat thickness, in Ribeye area, sq in Marbling score % Choice or higher % retail product Shear force, lb Tenderness score a Avg. of Angus and Hereford 1127 686 .46 10.54 5.31 68.5 60.8 10.54 5.32 Avg. of six Continental breeds 1236* 748* .16* 12.82* 4.75* 30.6* 68.9* 11.61* 4.95* Summary of 1,066 steer progeny in U.S. MARC GPU Study (Gregory et al., 1999). * Statistically significant difference (P < .05). COMPOSITE DEVELOPMENT Sample widely within the breeds so as to avoid inbreeding and maintain heterosis Select the best foundation animals possible within the lines COMPOSITE DEVELOPMENT Avoid inbreeding and maintain heterosis: Have large herd (500 + cows), or Cooperate with other composite breeders, or Reconstitute the composite from time to time (open herd) HYBRID BULLS Hybrid bulls may be the way to exploit the composite concept: Simplicity Rotate unrelated F1 bulls Percentages of retained heterosis: AB AB = 50% AB AD = 67% AB CD = 83% HYBRID BULLS Compared to purebred bulls: Slightly earlier puberty (2 to 5%) Higher sperm concentration and motility Slightly higher pregnancy rates (0.2 to 3.7%) No differences in standard deviations of traits of progeny sired by either hybrid or purebred bulls. SUMMARY OF THE COMPOSITE CONCEPT Composites can offer: Simplicity Breed complementarity so as to match bioeconomic traits with the environment and with market requirements Heterosis, if inbreeding is avoided Can help avoid genetic antagonisms Uniformity from generations to generation Variation in quantitative traits is no greater in composites than in straight-breds SUMMARY OF THE COMPOSITE CONCEPT Potential Challenges: Variation in qualitative traits (color, horns, etc.) Perception of large variation in quantitative traits Sources of unrelated seedstock so as to avoid inbreeding Use of inferior parent stock Marketing the concept Adequate data base to generate EPDs Other? WHAT CAN WE LEARN FROM THE PORK INDUSTRY? STRUCTURAL CHANGES IN THE PORK INDUSTRY Over 40% of the nation’s hogs are marketed by operations producing over 50,000 hogs per year. The 50 largest pork producers market 50% of the nation’s hogs. Smithfield Foods, the nation’s largest producer and packer, produces 14% of the nation’s hogs, which represents 70% of it’s slaughter capacity. In 1991, the top six pork packers had 49% of total slaughter capacity. Today they have 75% of total slaughter capacity. STRUCTURAL CHANGES IN THE PORK INDUSTRY In 1993, only 11% of all hogs were sold on some type of prearranged, marketing contract with packers. Today, 74% of all hogs are marketed under some form of contract agreement. This indicates the odds are high that the pork industry will be vertically coordinated, within the decade. The probability that pork will become totally vertically integrated like the poultry industry, from hatchery through processor, is not high, but a lot depends on the success of Smithfield Foods, which is 70% vertically integrated and produces one-seventh of U.S. hogs. SOURCE: Glenn Grimes, Univ. of Missouri. PHOTO OF JOE LUTER, CEO, SMITHFIELD FOODS STRUCTURAL CHANGES IN THE PORK INDUSTRY The key for the survival of independent hog producers is to find ways to become interdependent. The industry needs to come up with methods for its various sectors to share profits so that independent producers can be rewarded if they generate the right kind of hogs, and allow packers and further processors to be profitable as well. SOURCE: Steve Meyers, NPPC. SWINE BREEDING SYSTEMS Commercial use of A.I. has grown from 15% in 1990 to approximately 70% today: - Over 90% of sows in the 50 largest operations are bred A.I. Genetic Companies dominate the seedstock market, providing about 70% of today’s commercial genetics: - Over 95% of the genetics in the 50 largest commercial operations is provided by companies. Independent breeders provide the remaining 30% of commercial genetics: - Ten to twenty breeders account for much of this. - Most of the rest of the independent breeders service the club pig industry. PHOTO OF LEAN VALUE ADVERTISMENT WHY ARE THE GENETIC COMPANIES DOMINANT? They make full use of within-breed selection, breed differences (complementarity), hybrid vigor, and DNA technology. They have been successful in combining reproduction, growth, and carcass traits into well-designed breeding programs for the commercial industry. They are full-service oriented, offering assistance in: - Nutrition - Herd Health - Total Quality Management (TQM) - Marketing and Risk Management - Record Systems - New Technology Updates INDEPENDENT SWINE BREEDERS The few independent breeders that are still marketing to significant numbers of commercial producers have become “full-service seedstock providers.” They generally supply more than one breed, often three or four breeds. They sell semen as well as boars. They maintain a staff of sales and service representatives. PHOTO OF WALDO FARMS AD PARTIAL LIST OF SWINE GENETICS COMPANIES PIC (Pig Improvement Company) - UK DeKalb Choice Genetics - USA (Monsanto) NPD (Northern Pig Development) - UK/USA (Smithfield Foods) Cotswold - UK Babcock Swine - USA GenetiPorc - Canada Seghers - Belgium Newsham Hybrids - UK Danbred - Denmark SWINE GENETIC COMPANIES Several companies are global and provide genetics for widely diverse environments. Genetic lines are specifically designed for their targeted environments. Traditional rotational crossbreeding systems and rotational boar lines are being phased out by companies; too inefficient. Economics are dictating the move to terminal breeding systems. PHOTO OF TERMINAL COMPOSITE BOAR AND MATERNAL COMPOSITE SOW PIC TERMINAL BOARS FOR COMMERCIAL USE PIC 280 = L15 (Purebred Duroc) PIC 327MQ = L27 (Nearly straight Hampshire; RN gene removed) PIC 337 = L65 (Approx. 1/2 Duroc, 1/4 LW, 1/4 Pietrain) PIC 356 = L65 x L27 PIC 366 = L65 x (L62 [Pietrain] x L27) PIC 367 = L65 x (L65 x L27) PHOTO OF PIETRAIN BOAR PHOTO OF PIETRAIN CARCASS EXAMPLE OF PORK PRODUCTION, USING PIC GENETICS Great Grandparent Matings L2 X L2 (Pure Line Landrace) L3 X L3 (Pure Line Large White) Grandparent Matings L2 X L3 = L42 Gilt Parent Matings L19 Boar (3/4 Duroc, 1/4 LW) x L42 Gilt = C22 Gilt (Camborough Gilt) Commercial Matings Terminal Boar x C22 Gilt = Market Progeny TRENDS IN SWINE SELECTION Strong selection pressure on % lean from mid-1980’s to now. Currently, pork is about as lean as it needs to be. Pork lost meat quality in its guest for leanness. Now emphasis is on improving water holding capacity, color, and firmness: - A 24-hr. postmortem pH no lower than 5.5 for adequate color. - Minolta color lightness score of less than 50 for adequate color. - Genetic companies are including these traits in their selection indexes. Because of it’s impact on throughput in finishing houses, growth rate will receive increasing emphasis. LEAN MEAT WITH ABOVE-AVERAGE EATING QUALITY “The key to future competitiveness and profitability in the swine industry is the efficient production of lean pork products with aboveaverage eating quality.” Tom Baas Iowa State University PHOTO OF PIC BOARS BRED FOR HIGHER MEAT QUALITY PHOTO OF NATIONAL SWINE REGISTRY SIRE SUMMARY EPD’s IN NATIONAL SWINE EVALUATION Number of pigs born alive. Litter wt. at weaning, adjusted to 21 days of age. Days to reach 250 lb. live wt. Backfat thickness, adjusted to 250 lb. live wt. Pounds of fat-free lean, adjusted to 185 lb. carcass wt. ECONOMIC INDEXES IN NATIONAL SWINE EVALUATION Terminal Sire Index (TSI): Ranks sires for use in a terminal sire breeding system. Sow Productivity Index (SPI): Ranks individuals for maternal traits only. Maternal Line Index: A general purpose index that combines EPDs for all maternal and terminal traits. PHOTO OF OTHER SWINE REGISTRY MAGAZINE PHOTO OF AMERICAN BERKSHIRE GOLD BRANDED PORK ADAPTING TO A CHANGING BEEF INDUSTRY GLOBAL BEEF PRODUCTION IN THE FUTURE The beef industry will adopt breeding systems somewhat similar to the pork industry. The commercial industry will talk about lines of genetics (e.g., L125) rather than specific breeds such as Angus or Hereford. These lines will be based on complementary genetic mixes that are composites of pure breeds. Pure breeds will still be necessary to support these commercial lines. SOURCE: Ben Ball, Elders Limited GLOBAL BEEF PRODUCTION IN THE FUTURE No longer will one product be marketed 6 or 7 times before it is consumed. It will be marketed once. But it will be marketed through a strong alliance between the genetics provider (the most critical stage), through the various other stages, to the final retail outlet. The real keys to the industry will lie at each end of the chain: genetics and the customers. SOURCE: Ben Ball, Elders Limited CHALLENGES AND OPPORTUNITIES FOR BREED ASSOCIATIONS ADAPTING TO A CHANGING INDUSTRY Assist breeders in the evolving process of becoming full-service genetic providers. Assist breeders that have common objectives in development of coordinated marketing programs. Develop systematic programs for producing, recording, and marketing hybrid seedstock. COMPOSITE BREEDING The proliferation of composite breeding is not a matter of if, but when. If not now, when? It seems clear. The science is sound. The evidence is compelling. The time is now. Let’s move ahead!