URUS Group LP (URUS) has announced their acquisition of the majority interest in Leachman Cattle of Colorado. This came about thanks to the synergy between Leachman Cattle of Colorado andURUS’ other holdings that center on supplying cutting edge genetic, reproductive and management solutions to a world market.
Adding Leachman’s propriety resources and global database will improve the ability of URUS to conduct research and development. Ultimately, this will enhance the company’s ability to provide the optimum genetics needed to best fit the various scenarios found in the many countries they serve.
URUS has gathered under its umbrella a significant group of companies that are primarily genetic suppliers or that provide data management solutions. These include the bull studs Alta Genetics, GENEX, the dairy semen company Jetstream Genetics, as well as companies like PEAK that produce custom-designed elite females and bulls for dairy producers, and Trans Ova Genetics—a major player in reproductive technologies.
Among URUS’ other companies is VAS, a global market leader connected to dairy farm management systems. When combined with Leachman’s global beef database and the ability to turn that data into knowledge, URUS will be a formidable competitor in genetics and information systems in both the dairy and beef market.
The Leachman system of producing bulls utilizes a wide array of cooperators to produce the calves, which cumulatively makes Leachman Cattle one of the largest bull suppliers for commercial customers in the world. They work with some purebred cattle, but their primary product is an open-ended composite called Stabilizer. Although most of the Stabilizer seedstock is produced from genetics within the system, the Leachman company is always on the lookout for unique genetics of any breed or breed combination that can improve their composite. In addition, the input of outside genetics assures optimum heterosis is maintained.
Leachman also makes claim to the largest composite database in the world that can evaluate data utilizing the latest genomically enhanced genetic predictions calculated from the new one-step genetic analysis tools. However, at the heart of their genetic prediction models are their indexes. They also have a number of the largest seedstock breeders from various breeds that participate in their genetic analysis to have access to their proprietary indexes.
Lee Leachman told WLJ, “The bottom line is these indexes work, and the producers that use our system can make faster progress than their competition whose only information comes from the traditional breed association model.”
Leachman Cattle is also able to respond quickly when the need arises for a new genetic prediction. For instance, they recently came out with genetic prediction for bulls passing a breeding soundness exam at 15 months that has a surprisingly high heritability at .32.
One of the major synergies of Leachman joining the URUS group of companies will be their ability to service the dairy market with beef semen. Right now, replacements are made from the top of a dairy herd as identified through genomics, which are then bred with sexed semen to produce replacement heifers with the remainder of the cows bred to beef bulls.
“This is an area that can be turned into a significant profit center for dairies in the future with the right genetics and management,” Leachman said. “We think that Stabilizers are the right fit to serve this role, particularly with the ability to produce the right genetics for the situation utilizing the correct genetic inputs from whatever breed and breed combination that comes from.”
Leachman goes on to explain, “Right now, dairies have three overriding priorities. Overwhelmingly, the first priority is to get the cow bred, which means we have to identify the bulls that have the highest conception rates. Next, dairies don’t want to deal with dystocia and want a market where someone will pick that calf up as soon as it has had colostrum as possible. From there, the new owner will take that calf to a calf ranch to be grown out before entering the feedlot.”
However, Leachman points out that fed dairy cattle have some significant problems: “Dairy steers have poor feed efficiency, low dressing percents, low red meat yield, and lack the conformation that is most appealing to consumers and required to enter the largest branded beef program.
“We need to fix all these problems at once, but that can be done with breed complementarity. For instance, if you generalize, some of the traditional British breeds don’t have the conformation needed to avoid a dairy discount, while some of the Continental breeds need more marbling to reach the top-quality grade.”
He added, “However, we have been designing cattle since 2011 that utilize both British and Continental breed inputs necessary to make the ideal dairy-beef crossed calf. We also have been testing feed efficiency since 2004, and we have individual intake records on 42,000 head.”
He warns though, that one size does not fit all. “We find that you need separate indexes to select the right bulls for Holsteins, Jerseys and ‘HoJos’ (Holstein-Jersey crosses). We think by utilizing our genetics combined with the right health and management systems, which URUS specializes in, we can produce dairy-crossed feeder cattle that can be profitable in the feedlot and on the rail. A calf that can command a better price for the dairy producer or make an attractive option for retained ownership.”
All in all, URUS is looking to expand its market share in the beef semen market, as well as grow its beef-on-dairy program. Currently, URUS is doing business in 80 countries, and Leachman’s global dataset will allow them to place the proper genetics into the correct situation.
Ultimately, with URUS purchasing Leachman, a corporate model will compete with the industry’s traditional breed association system of producing seedstock. This challenge is real, as the thought is that the private model has some distinct advantages. The assumption is that a private business structure can respond faster to market forces, collect meaningful data on more traits on a whole herd basis, and make decisions based on the business realities of their customers rather than the political lens of a breed association board.
When asked what URUS is most proud of, their website indicates, “Every year, millions of animals are born with genetics from URUS companies. As the market leader in dairy information management, its cloud platform manages over 14 million cows and heifers across 6,000 dairies. These animals form the new generation of livestock: healthier and more productive animals, producing efficient and safe food for an ever-growing population.”
Acquiring Leachman Cattle of Colorado will further improve URUS’ ability to supply both the beef and dairy sectors with profitable genetic and management solutions. — Dr. Bob Hough, WLJ correspondent
