SA can compete in the global livestock genetics market

South Africa is a top producer of livestock genetics and has the technological edge needed to supply high-quality semen to local and international markets. Dr Fanie Steyn, MD of Ramsem, which has partnered with Taurus-Evolution to set up a new bull station in Bloemfontein, talks to Annelie Coleman.

SA can compete in the global livestock genetics market
Dr Fanie Steyn
Photo: Courtesy of Ramsem
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How do South African livestock genetics compare globally?
South Africa has some of the world’s best livestock genetics and top stud breeders. A number of locally developed breeds flourish on other continents such as South America, North America, Europe, Asia and Australia. Some examples would
be Bonsmara cattle, Dorper sheep, Boer goats, Dohne Merinos and Mutton Merinos.

READ:Why choose mutton and lamb?

The South African Boer goat was exported to Australia and then marketed elsewhere in the world by that country. Can SA livestock genetic industries act to regain lost markets?
South Africa must seize every opportunity to capitalise on the global multibillion dollar genetics industry. Lately, with the weakening of our currency, it has become increasingly profitable for breeders to export genetics. We now know that the value of exports will have to increase if we hope to correct this country’s current account deficit.

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I’ve been fortunate to travel to most continents of the world, including countries that are leaders in genetic exports such as Australia and the US. There is a healthy trade in genetics from countries such as Australia to China. We have a lot to learn from Australia about growing our market share in livestock genetics.

I’ll sum up the success of our Australian counterparts in three points: marketing, the implementation of export protocols negotiated by national government, and superior sanitary health status.

How does Australia go about the marketing of livestock and livestock genetics?
In Australia, breeders and breed associations market livestock and livestock genetics. Most importantly, they’re supported by the active involvement of the Australian government, which plays a leading role in the marketing of all Australian agricultural products.

The Australian department of trade has established an entity called Austrade which markets all Australian commodities to the country’s major trading partners. Austrade has a network of offices in countries such as Brazil, China, Germany, India, Japan, Korea and the UK. There are 11 offices in China, one in each of the major cities. This kind of network and infrastructure shows how serious the Austrade marketing programme is.

Through Austrade, the government, in partnership with Australian breeders, has created a market for, among others, Merinos, Boer goats and Dorpers in China. On a visit to a sheep and goat conference in China in 2015, I was shocked to learn that many delegates did not even know that the Dorper and Boer goat originate from South Africa! They were under the impression that all good quality sheep breeds came from Australia.

How do Australian export protocols work?
This is one of the major reasons Australia is able to export more genetic material than South Africa. They have a large number of well-established export protocols set up with other countries. The Australian government departments of trade and animal health constantly negotiate for new export protocols on behalf of livestock breeders and breed societies.

Proof of their success is the fact that they can export embryos and live animals to China, whereas South Africa cannot. This is despite the fact that South Africa is a signatory to the BRICS agreement.

I have a number of written requests from cattle, sheep and goat breed societies asking for export protocols to China but there has been no substantial progress and no feedback has been received from the relevant government departments. Many international clients have wanted to buy Dorper and Boer goat genetics from South Africa but due to the lack of export protocols here, they have eventually imported them from Australia or New Zealand.

What can we learn from its sanitary health regime?
Australia markets itself as having a superior sanitary health status with regard to notifiable diseases. This is true in some instances – for example, Australia does not have FMD (foot-and-mouth disease). On the other hand, it does have widespread Johne’s disease.

It is important to recognise that if all sanitary, quarantine and health-testing procedures are followed correctly, the risk of disease transmission via embryos or semen is negligible. Proof of this is the fact that South Africa has been exporting genetics for more than 20 years to countries such as Australia and Brazil without any cases of disease outbreak in the importing country.

Which countries are possible new markets for local genetics?
China has shown a keen interest lately in South African genetics, particularly in beef, mutton and dairy breeds. South American countries such as Argentina, Venezuela and Columbia have also shown interest after seeing the quality of genetics that South Africa has exported to Brazil and Paraguay.

What measures should be taken by government policymakers to ensure a viable export market for South African livestock genetics?
This calls for ongoing negotiation at the highest political levels between the respective governments. For example, our ministries of agriculture and trade should be in constant communication with their Chinese counterparts to ensure a viable market for South African livestock and livestock genetics in that country. Moreover, communication between the abovementioned departments, government veterinarians, breed societies and registered export centres such as Ramsem is crucial.

All role players, but especially the provincial and national state veterinary services, should prioritise and implement measures to preserve our countries’ fragile animal health status. After the last outbreak of FMD, we lost almost all our major export markets for livestock and livestock products for two years. Some countries, including Australia, are still reluctant to accept the FMD-free status we regained from the World Organisation for Animal Health in 2015.

How would the lack of an official traceability system locally affect possible genetic exports?
Importing countries have begun demanding more and more information before issuing import permits. For example Brazil requires, among others, five-generation animal pedigrees, DNA certificates, inspection reports by breed societies, individual
animal performance figures and official sanitary certificates.

All of this data has to be officially verified and signed off before the Brazilian authorities will accept it.

Does South Africa have the technological infrastructure for large- scale genetic exports?
South Africa has a number of registered world-class export facilities. These are managed by qualified veterinarians regulated by the Animal Improvement Act and Animal Diseases Act. As far as reproductive technologies go, I believe that most of our registered centres are on a par with other international companies and centres.

What do you see as the best- and worst-case scenarios for South Africa’s livestock genetics exports a decade from now?
The best-case scenario would be the rollout of new genetic export protocols, particularly for the export of cattle, sheep and goat genetics to China. The worst-case scenario would be another local FMD outbreak.

Phone Dr Fanie Steyn on 051 412 6327 or email him at [email protected].

This article was originally published in the 5 February 2016 issue of Farmer’s Weekly.