Better Breeding Worth

Genetic gain is the genetic improvement of animals as a result of breeding decisions that benefit the farmer by increasing desirable traits for profitability and improved environmental outcomes. It’s about improving the quality and efficiency of the national herd.

A genotype describes the DNA profile of an animal (genes). Phenotype describes how these genes are expressed as performance or traits – such as animal size, milk production, and fertility. Genomics is the study of genes and their expression – the relationship between genotype and phenotype.

Other countries have made more use of genomic selection (genomics) than we have by driving more accurate evaluations of young bulls using genomics, which has given farmers greater confidence to use genomic sires.

Using genomics can decrease the generational interval from at least five years to just three years by using younger sires. New Zealand herds can therefore benefit from improved genetic gain at a faster rate than with the traditional daughter-proving process.

Through genomics, a much higher number of bulls are able to be screened and assessed for potential, without having to wait for the results of traditional sire proving schemes – this increases selection intensity. This means kiwi farmers can be confident they have access to the best bulls.

NZAEL proposes that New Zealand could achieve a 50% increase in the rate of improvement in Breeding Worth if there was higher uptake, and a good system to incorporate genomic information into New Zealand’s Breeding Worth calculations.

This increase in Breeding Worth would result in an increase in average Breeding Worth from around $10 per cow per year, to $15 per cow per year. Over 10 years this could accumulate to $1.36 Billion for the New Zealand dairy industry.

The system supporting genetic gain in the New Zealand dairy herd is large and complex, and involves multiple organisations, such as science research organisations and providers of artificial breeding and herd testing services. Data collection across organisations and among farmers varies considerably in terms of both quality and quantity.

Improved long-term herd performance and profitability. By breeding for selected traits such as milk production and quality, live weight, fertility and gestation length, every generation of replacements will be more profitable and efficient than the year before.

New Zealand Animal Evaluation Limited (NZAEL) is a subsidiary of DairyNZ, which is funded by dairy farmers through a levy. The role of NZAEL as the industry good organisation for genetic evaluation is to ensure that the New Zealand dairy herd is resilient, and that rates of genetic gain are internationally competitive.

NZAEL develops and delivers the technologies that publish the independent evaluation of all dairy animals using the Breeding Worth (BW) index. This is the critical information farmers and industry use to help guide their breeding decisions to increase both the genetic gain of their herds and to increase their farm profit.

NZAEL is proposing to improve Breeding Worth by including all relevant New Zealand genomic and phenotypic information into a centralised system that’s inclusive for all farmers, independent, and credible.

NZAEL is proposing a single national animal evaluation system that calculates breeding worth with genomic information to improve New Zealand's rate of genetic gain. This would create a single, independent source of breeding worth, which currently doesn’t exist. The proposed new breeding worth would be available for all farmers to use when comparing bulls and cows, regardless of who a farmer’s service provider is. Farmers will then be able to make better breeding decisions that are best suited to their farm.

Genomic predictions require both genotypic and phenotypic data. Most genotypic data are currently held in New Zealand by commercial entities – mainly CRV and LIC. There is no independent source of genomic information and animal evaluation.

NZAEL is proposing to collate all genotypic and phenotypic data into one national system. A centralised source of Breeding Worth will reduce fragmentation within the sector and will provide more reliable predictions as more of the data available will be utilised.

New Zealand currently has three different Breeding Worth being produced by CRV, LIC and NZAEL and each has a different outcome. This creates confusion for farmers.

Independent research by The New Zealand Institute for Economic Research in 2021¹ showed that New Zealand’s structures for animal evaluation were not delivering the best possible rates of genetic gain. Although the technology of genomics is available in New Zealand, the uptake of the technology has been slow. However, genomics is now significantly more advanced both internationally and within New Zealand. The timing is right to take advantage of this technology. To remain internationally competitive, it’s important that New Zealand doesn’t lag behind in genetic gain - and acts sooner rather than later.

Results from the AbacusBio 2020 study showed that New Zealand is lagging behind other comparable countries such as Australia, UK and USA. Their research showed that other countries have seen a doubling in their rate of genetic gain with the implementation of genomic evaluations.

¹ The New Zealand Institute for Economic Research developed a report for the Ministry of Primary Industries on Dairy herd improvement: What evidence do we have on the linkages between market structure, incentives, and performance? (NZIER 2021)

NZAEL has developed a proposed operating model of payments for data provided, funded from fees paid by all participants to access NZAEL services. Alongside the Milksolids Commodity Levy funding that NZAEL receives, fees will also apply for new services for bull and cow owners.

This means:

• Bull owners will pay a fee for screening their bulls and for enrolling them with NZAEL.
• Cow owners will pay fees (most likely indirectly) for enrolling their cows through herd records providers, or for receiving genomic breeding worth predictions for their cows.
• A straw levy may also be collected to fund additional services in the system.

The proposed operating model won’t necessarily see farmers paying more, but it will make the costs more transparent.

The main contribution of funding to animal evaluation will continue to come from the Milksolids Commodity Levy. As the new system is being set up, the funding NZAEL receives from the Milksolids Commodity Levy will remain consistent with its prior funding arrangements (i.e. the 2022 level of funding). Overtime, the operating model may be self-funding to the point where the Milksolids Commodity Levy contribution could be reduced.

The second largest contribution of funding will come through bull owners payments of screening and enrolment fees. These fees must strike a balance between being low enough to attract bull owners and new participants to screen a large number of animals for genetic merit in our system, versus being high enough to reflect the investment made in the system and information to which they now have access.

The remaining funding will come through dairy farmer payments of fees for enrolling cows, collecting female genotypes (if chosen) and a straw levy (20c a straw). These fees, while a change from the current amount of investment required for animal evaluation, are justified due to the independent, inclusive and accurate system being delivered.

NZAEL will ensure that:

• All users pay a fair price for the use of information and services.
• All participants are paid fair royalties for access to their genomic data.

NZAEL believes that accurate, independent and inclusive animal evaluation using genomic information is key to increasing profits for Kiwi dairy farmers and improving outcomes for the entire New Zealand dairy sector.

Genetic gain provides significant value for the dairy sector. Farmers benefit from the efficiency and productivity gains that come from better genetics passed on to their animals. Farmers get animals that are more resilient, more profitable, and easier to farm.

NZAEL is filtering phenotypic information from DIGAD that doesn’t add value to animal evaluation. For example: when many animals from the same herd have the same calving or mating date. This can create bias in the calculations for individual traits that make up Breeding Worth.

This data influences the accuracy of your animals Breeding Worth and flows back to the Sire’s Breeding Worth and Reliability. NZAEL wants farmers to have access to the most accurate information to make their breeding decisions.