Genomic Technologies in Commercial Cattle Production. Kent Andersen Associate Director, Technical Service

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1 Genomic Technologies in Commercial Cattle Production Kent Andersen Associate Director, Technical Service

2 Overview Beef Genomic Technology Genetic Abnormalities Qualitative Traits (i.e. color, polled) Parentage Verification (seedstock) & Assignment (commercial) Performance Traits Seedstock genetically superior bulls to commercial cowcalf producers Commercial cow-calf, stocker, feedlot

3 50% from Sires 25% from Maternal Grand-Sires 75% of a calf crop s genetic makeup is from the most recent two generations of bulls

4 WHAT ARE EPDS? CONSIDER TWO ANGUS SIRES Sire A WW EPD = +53 lbs. (top 20% rank) Sire B WW EPD = +39 lbs. (top 80% rank) Difference in EPDs = 14 lbs. Assuming 25 calves/year for four years: $2,520 advantage for Bull A due to weaning growth 14 lbs X 100 progeny = 1,400 lbs. X $1.80/lb = $2,520 ($25.20/hd) EPDs rank animals and incorporate pedigree, performance and progeny information young bulls have low accuracy

5 Accuracy What measures is the accuracy? reliability of EPDs Accuracy ranges from.05 (pedigree) to.99 Accuracy increases as information accumulates Accuracy indicates possible change or error in EPDs

6 SPORTS ILLUSTRATED PRESEASON TOP 20 Preseason SI Rankings Rank TEAM 1 Alabama 2 USC 3 LSU 4 Oregon 5 Oklahoma 6 Wisconsin 7 South Carolina 8 Michigan State 9 Georgia 10 West Virginia 11 Florida State 12 Arkansas 13 Michigan 14 Clemson 15 Texas 16 Kansas State 17 Stanford 18 Virginia Tech 19 Nebraska 20 Georgia Tech

7 FINAL COLLEGE FOOTBALL RANKINGS Preseason SI Rankings Rank TEAM 1 Alabama 2 USC 3 LSU 4 Oregon 5 Oklahoma 6 Wisconsin 7 South Carolina 8 Michigan State 9 Georgia 10 West Virginia 11 Florida State 12 Arkansas 13 Michigan 14 Clemson 15 Texas 16 Kansas State 17 Stanford 18 Virginia Tech 19 Nebraska 20 Georgia Tech OUTSIDE TOP 20 USA Today Final Standings Rank TEAM RECORD Change 1 Alabama Oregon Notre Dame 12-1 UR 4 Georgia Texas A&M 11-2 UR 6 Stanford South Carolina Florida State Clemson Florida 11-2 UR 11 Kansas State LSU Louisville 11-2 UR 14 Boise State 11-2 UR 15 Oklahoma Northwestern 10-3 UR 17 Utah State 11-2 UR 18 Texas Oregon State 9-4 UR 20 Vanderbilt 9-4 UR OUTSIDE TOP 20 9 TEAMS MOVED UP INTO THE TOP 20 9 TEAMS DROPPED OUT OF THE TOP TEAMS STAYED IN TOP 20

8 FINAL COLLEGE FOOTBALL RANKINGS SIMILAR TO RANKINGS FOR SPORTS TEAMS EPD s Rank animals Accuracy of EPD Ranks increases as data accumulates Tested animals with GE-EPDs are ranked more dependably for more traits, earlier in life

9 Genomic Enhanced (GE)-EPDs

10 Sources of Information for GE-EPDs Pedigree Information Individual Performance Data Progeny Performance Data Genomic Predictions Genomic-Enhanced EPDs, Accuracies and Indexes Powered by HD 50K Time, Money and Opportunity Costs

11 AGI/AAA WEEKLY GENETIC EVALUATION 17+ million pedigrees 22+ million performance records 41,000+ DNA test results 62+ million EPDs The data is the key value determinant

12 Application of Genomic Technology $85 $75 $75 $90

13 HD 50K FOR ANGUS - IMPACT ON EPDS, ACCURACY VALUES AND APPROXIMATE PROGENY EQUIVALENTS Trait Correlation (%GV) for GE-EPDs 1 Average EPD Change 2 (+/-) Average Accuracy 3 Progeny Equivalents 4 CED.61 (37) BW.64 (41) WW.54 (29) YW.66 (44) DMI (RADG).59 (35) YH.70 (49) SC.73 (53) Doc.67 (45) Milk.38 (14) MW.51 (26) CW.57 (32) Marb.63 (40) RE.63 (40) Fat.53 (28)

14 HD 50K correlations for Red Angus RAAA 1 and Simmental GE-EPDs ASA from respective RAAA HD 50K 2 separate Trait calibrations Red Angus HD 50K values provided by the RAAA, HD CSU, 50K Pfizer Category Trait Correlation for GE-EPDs Explained Variation Correlation for GE-EPDs ASA HD 50K Explained Variation Calving Ease CED.73 53%.45 20% BW.72 52%.65 42% Growth WW.56 31%.52 27% YW.62 38%.45 20% Maternal CEM.51 26%.32 10% Milk.49 24%.34 12% Carcass FAT.73 53%.29 8% REA.57 32%.59 35% MARB.57 32%.63 40% 1 Red Angus Association of America (RAAA) Pfizer calibration for Red & Black Angus 2 American Simmental Association (ASA) calibration for Simmental & SimAngus

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16 More Comprehensive Selection More effective Selection for traits that are: Difficult (i.e. Tenderness) Time consuming (i.e. Maternal) Expensive to measure (i.e. DMI & RFI) Carcass (MARB &REA) Explained Variation: 32% Tenderness Explained Variation: 28% Maternal (MCE & Milk) Explained Variation: 25% Dry Matter Intake Explained Variation: 14% Residual Feed Intake Explained Variation: 6%

17 HD 50K Jump-Starts Accuracy and Reduces Selection, Mating & Marketing Mistakes Bull Purchase HD 50K GE-EPDs Progeny Born Progeny Slaughtered Daughters in Production Traditional EPDs

18 Supply Chain Genetic Tools Cow-Calf Packer-Retail Stocker-Feeder Seedstock

19 Genotyping Platforms Product Technology Availability Application HD 770K 770,000 Marker Platform Public Beef/Dairy Research 50K Marker Platform Public Beef/Dairy Seedstock GGP-HD 77K Marker Platform Proprietary Seedstock 384 Marker Panel Proprietary 130 Marker Panel Proprietary Seedstock & Commercial Cattle CAB/AGI Commercial Angus

20 FEATURES OF HD 50K FOR ANGUS Parentage HD 50K GE-EPDs and 50K Ranks Calving Ease Direct Birth Weight Weaning Weight Yearling Weight Dry Matter Intake (RADG) Residual Feed Intake Yearling Height Scrotal Circumference Docility Calving Ease Maternal Milking Ability Mature Weight Mature Height Carcass Weight Fat Thickness Ribeye Area Marbling Score Tenderness

21 GENEMAX TM In Action

22 GENEMAX Features GMX Score (Combined Gain & Grade Economic Value) GMX Marbling GMX Gain Sire Match (From nominated HD 50K tested bull battery - optional) $

23 GENEMAX Results GMX Score Rank 99 Top 1% 75 Top 25% 50 Average 25 Top 75% 1 Top 99% GMX Marbling & Gain Rank 5 Top 20% % 3 Middle 20% % 1 Bottom 20%

24 Pratt Feeders, Pratt, KS GMX Field Study Angus Source TM Steers GMX Score Quartiles # Hd Avg. GMX Score GMX Marbling GMX Gain

25 Pratt Feeders, Pratt, KS GMX Field Study Angus Source TM Steers Performance and Carcass Results GMX Score Quartiles Avg. ADG Avg. Marbling Score % CAB Acceptance Odds of reaching CAB MT MT SM SM

26 Gain & Grade Economics Feedlot Closeouts, yearling steers High Growth, High Grade* Low Growth, Low Grade** No. of Pens Total Head 36,266 26,779 Death Loss 1% 1% Placement wt., lbs Finish wt., lbs. 1,402 1,282 Days on Feed Daily Dry Matter intake, lbs Average Daily Gain, lbs DMI/gain, lbs Cost of gain, $/cwt. $88.39 $93.64 Dressing % % Prime and Choice 73% 40% % CAB 19% 5% % Yield Grades % 95% Grid Premium, $/head $39 ($13) Value/head sold $1,415 $1,256 Profit/(loss) per head $44.28 ($35.59) Source: BEEF, October 2012 Difference $80.17

27 JBS Five Rivers Why breed heifers? Historically under-stocked national beef cow inventory Available bunk space, feeding, grass, labor and management expertise Understand differences in performance, associated value and breakevens Prototype broader replacement heifer enterprise opportunities

28 Number of Heifers Five Rivers GENEMAX Test Results 450 GMX Score Distribution Not Selected Selected GMX Score

29 GENEMAX Features GMX Score (Combined Gain & Grade Economic Value) GMX Marbling GMX Gain Sire Match (From nominated HD 50K tested bull battery - optional) With 30% heifer retention, average GMX Score of each future progeny of selected heifers yield over $11/head advantage from higher gain and grade eight lifetime progeny equate to roughly $90 $

30 Five Rivers GENEMAX Sire Assignments GMX Assigned A.I. Sires Daughters Assigned Daughters Selected Complimentary A.I. Sire Mating Strategy Mytty In Focus Correct REA & CW S A V Final Answer Improve CW & $B 21AR Roundup Increase Milk, Marb, CEM H A Image Maker More Marb, Less Milk G A R Ultimate Improve Doc, HP, CEM, MW Connealy Contrast 7 5 Increase WW, YW, Marb Total (60%) (39% Selected Overall)

31 Takeaways Genomic Technologies in Commercial Cattle Production Increasingly, commercial cow-calf producers are purchasing bulls based on genomic-enhanced and enabled information More dependable and comprehensive selection Enhanced genotyping platforms and collaborations are emerging that promise to increase value and expand adoption Non-profit, public and private Targeted (traits and breed type) panels for commercial cow-calf and feedlot producers are becoming more viable

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