AMERICAN ANGUS ASSOCIATION - THE BUSINESS BREED

COMMON GROUND

Access is Key

A strong breed association allows members to operate independently but take advantage of the scale and power that comes with working together.

By Mark McCully, Chief Executive Officer

July 1, 2024

Amongst the festivities of Independence Day and the steaks and hamburgers on the grill (and probably some haymaking), we reflect on the significance of the holiday. The spirit of independence exhibited by our founding fathers is something I think most cattle producers admire.

Cattlemen are independent by nature. We like to create our own path, make our own way and do things the way we want to do them. While this fierce independence can be an impediment to industry collaboration, it is an admirable quality and one that makes the cattle business different from all other livestock industries. 

Vital to preserving this independent way of operating is access — to land, capital, markets, customers, labor and tools. With the freedom we celebrate on the Fourth of July, most of these are considered a given, but will that always be the case? That’s undoubtedly a loaded question and full of controversial factors I won’t attempt to unpack. But I do want to make sure we are thinking about access to research, data and genetics as we chart our future as a breed, as Angus breeders and as the American Angus Association.

The science that has driven so much progress for the cattle industry has historically been developed by our land-grant colleges and universities. Research in genetics and management was conducted for the betterment of the entire industry and shared publicly for all to access. Breed associations have worked closely with academia and established breeder programs to deploy the science. While our academic institutions are still doing very good work, it is not the only research being conducted.

Private and publicly traded companies are investing large amounts of money in research that may or may not be made freely available to producers. These companies are doing discovery in genetics and genetic evaluation to create a competitive advantage. Rather than releasing their research findings into the public domain, they will likely monetize their research and discoveries through products, services or licenses and royalties paid by producers. 

Related to the science is the collection of data. Historically, breed associations hold the largest phenotypic databases and build selection tools all breeders and commercial cattlemen can access. Today, there are multiple for-profit companies working to build databases of animal records that, when tied to accompanying genotypes, serve to inform their private genetic evaluations. While this is not a bad thing in and of itself, it does raise questions about access. 

Will all breeders be able to use these genetics and tools? Will there be an additional cost or royalty paid to these companies with a new trait prediction? Where will gene editing fit into their strategy? Will small breeders be able to access the same genetics as large or highly resourced ones?

I truly believe a primary value of breed associations is the ability to provide unbiased, science-based, cutting-edge information and tools to all breeders, regardless of size. Independent members can contribute their data to the association and when compiled with data from other independent members, valuable genetic information and predictions are provided, no strings attached. A strong breed association is a great hedge against vertical integration, allowing members to operate independently but take advantage of the scale and power that comes with working together through a membership organization. 

I certainly don’t know what the future holds, but I do know the seedstock and genetics business is changing at a rapid pace. Your Association is working strategically to conduct and collaborate on research that will make sure Angus breeders have access to the tools and data they need to continue leading this great industry. I’d love to know your thoughts on this topic, and specifically if you think I’m off-base. Give me a call or drop me a note. I’d love to hear what’s on your mind. 

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Mark McCully, Chief Executive Officer

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