News Update
March 14, 2011

Stacking the Odds with AI

Cattlemen know genetic change is a slow process, especially when compared to other species.

That should be enough motivation to think about stacking genetics, says Aaron Arnett, Select Sires vice president. Bull selection is only half the equation.

“Even the best set of sires mated to a group of mongrelized cows will not produce calves that hit the high-quality targets with any consistency,” he says.

Missouri’s Show-Me Select® program provides a test case. After all, its main focus is on using timed artificial insemination (TAI) to produce predictable females. After more than a decade, that has translated into an elite reputation as the go-to source of top-notch replacement heifers.

When the right sires are chosen, the results are just as outstanding in the feedyard and on the rail.

The Show-Me steer mates are setting quality records, one recent load making the news with 86.8% Certified Angus Beef® (CAB®) and CAB Prime acceptance.

“We’re helping producers put together these puzzle pieces,” says David Patterson, University of Missouri animal scientist who spearheaded the original program. “Timed AI is only the first step, because a wrong sire choice means they’re just breeding cows, not adding measureable value.” Read more.

New Insights on Reproductive Management of Beef Cattle

Pounds of calf weaned per breeding female is one of the most important variables affecting profitability in a beef cow-calf operation. The reason is simple: Beef producers market total pounds produced and have the expense of maintaining cows. The more cows that have a calf, the more pounds of beef can be marketed.

Producers need to optimize reproductive efficiency in their beef herds to maximize profitability. While many factors, such as nutrition, genetics and herd health affect the reproductive performance of a beef herd, reproductive management tools such as estrous synchronization and artificial insemination (AI) can greatly assist.

By itself, AI offers numerous advantages to producers: the use of genetically superior sires, specific mating and crossbreeding, selection of desirable and marketable production traits, and improved herd health. Likewise, a couple of the advantages of using estrous synchronization are more condensed breeding and calving periods and increased calf uniformity and weight. Combining the benefits of estrous synchronization and AI provides a mechanism to improve reproductive efficiency and profitability of a beef operation.

University of Minnesota (UM) Extension and North Central Research and Outreach Center specialists have been investigating a wide variety of estrous synchronization protocols in beef cows and heifers. Our focus has been on the development of protocols that facilitate the mass breeding of all female beef cattle at a predetermined time (fixed-time AI) rather than based on detection of standing heat. Fixed time-AI programs reduce the time and labor involved, do not require heat detection, allow all female cattle to be managed in a group rather than individually, and ensure that all females are given the opportunity to conceive to AI (not all will exhibit heat with estrous detection).

To enhance these protocols we have been trying to identify what factors limit fertility and determine how synchronization approaches can be designed to avoid such pitfalls. Areas of focus include how to control the growth of ovarian follicles (structures containing the ovum), how the hormonal environment during estrous synchronization may affect the viability of the ovum (egg) that is ovulated, and how other factors such as animal nutrition contribute to pregnancy success.

Our goal is to gain a greater understanding of the factors affecting female fertility and thus enhance reproductive efficiency in beef cattle by increasing the number of cows that conceive to estrous synchronization and AI.

Find more educational information about beef production at www.extension.umn.edu/beef.

— Release by UM Extension.

Lilly Makes an Irrevocable Offer to Acquire Janssen Animal Health

Elanco, the animal health division of Eli Lilly and Co., today, March 14, announced that Lilly has made an irrevocable, unconditional offer to acquire the animal health business of Janssen Pharmaceutica NV, a Johnson & Johnson Co. The two companies have notified the appropriate European works councils of their intentions.

 Headquartered in Beerse, Belgium, Janssen’s animal health business is primarily European-focused, targeting disease segments in companion animals and livestock, with special emphasis on swine and poultry.

Upon deal closing, Elanco would obtain a portfolio of about 50 marketed animal health products. As part of the proposed agreement, Janssen animal health employees solely dedicated to the animal health business will transfer to Elanco. No manufacturing facilities would be included in the transaction. Closing of the transaction is contingent upon clearance from European regulatory authorities and is subject to other customary closing conditions. No other terms of the transaction were disclosed.

— Adapted from release by Elanco.

Animal Health International Inc. to Merge With Lextron Inc.

Animal Health International Inc. (AHII) and privately held Lextron Inc. today, March 14, announced they have entered into a definitive merger agreement under which Lextron, with support from investment funds affiliated with Leonard Green & Partners L.P., will acquire all of the outstanding common shares of AHII for $4.25 per share, or approximately $111 million, plus the repayment of AHII’s outstanding indebtedness, for a total purchase price of approximately $251 million.

The new combined company will operate under the umbrella of the Animal Health International Inc. name and will be one of North America’s leading animal health businesses.

The transaction, which was approved by AHII’s Board of Directors, represents an approximately 11% premium to the closing price of AHII’s shares on March 11 and a premium of approximately 17% over AHII’s average closing price during the 30 trading days ended March 11, and a premium of approximately 41% over AHII’s average closing price during the 90 trading days ended March 11.

The transaction is expected to close by June 30, 2011, and is subject to AHII stockholder approval, antitrust clearance and certain other customary closing conditions. Investment funds affiliated with Charlesbank Capital Partners and Jim Robison, AHII’s chairman, president and CEO, who together own approximately 33% of AHII’s outstanding common stock, have agreed to vote in favor of the transaction.

— Adapted from a release by AHII.

— Compiled by Mathew Elliott, assistant editor, Angus Productions Inc.