Big name North American cattle genetics company, URUS Group, is to team up as a majority partner with Australia's largest artificial breeding supplier.
The Victorian-based Genetics Australia co-operative's membership has voted to support forming a new joint venture with URUS from July 1, to be officially known as Genetics Australia Holdings.
Almost 95 per cent of GA's farmer members supported the joint venture with Wisconsin-based URUS, the name behind prominent global artificial insemination, genetics, reproduction, and farm management systems businesses such as GENEX, Alta Genetics, PEAK, VAS and Trans Ova.
URUS has both a co-op and private ownership background and operates in more than 80 countries.
The deal, which was proposed by GA and later put to members for their approval in April, has also been supported by the Registrar of Co-operatives.
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Although the US partner will have 60 per cent ownership, the joint venture business will continue trading as Genetics Australia and continue to be led by GA chief executive officer, Anthony Shelly.
GA supplies genetics and herd improvement merchandise products used by Australian dairy and beef producers, and to several overseas markets.
The joint venture will have access to the full suite of GENEX co-operative products and access to the PEAK breeding program which currently produces about 10,000 calves a year.
URUS CEO, Paul Hunt, said Australia had been an important market for the business which had many years of experience here and had looked at ways to further its commitment to the market,
"When GA approached us about a partnership, we quickly determined this to be a fantastic opportunity that needed exploration," he said.
We have had a vision for many years of what we needed to deliver to the co-operative to ensure its long-term survival
- Trevor Henry, Genetics Australia chairman.
GA chairman, Trevor Henry, welcomed the overwhelming vote of confidence from members and support from the co-operatives registrar.
"We have had a vision for many years of what we needed to deliver to the co-operative to ensure its long-term survival, but more importantly continue to deliver the absolute best products and services to our members," Mr Henry said.
He said members saw value in partnering with a global entity which could deliver many benefits, including providing Australian dairy and beef producers access to market leading global genetics, technology and advice unlikely to be achieved by GA on its own.
The partnership would also provide access to more global markets for Australian bred and sourced bulls, which was good news for both URUS and the Australian industry.
Mr Shelly noted the vast majority of members saw the JV as "a great opportunity and good timing for the Genetics Australia board to be proactive while operating from a position of strength".
He said the GA team had embraced the opportunity and wanted to be a part of this exciting future.
"Over the next few weeks our teams will be working shoulder-to-shoulder to ensure this JV is successful from day one," Mr Shelly said.
Genetics Australia was founded as the Victorian Artificial Breeders Co-operative Society Limited in 1958, later becoming Genetics Australia Co-op in 1994 after VAB merged with Queensland's government-owned Wacol Artificial Breeding centre.
GENEX CEO, Huub te Plate, said both partners would ensure the co-operative culture of the Genetics Australia business was not lost through the transaction.
"It is not our intent to change the way Genetics Australia does business, more so to provide additional tools for the JV to further succeed in the Australian market."
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Andrew Marshall
Andrew Marshall is the group agribusiness writer for ACM's state agricultural weeklies and websites. He is a former editor at The Land and has worked in various Rural Press group roles in Canberra, North Richmond (NSW) and Toowoomba (Qld).
Andrew Marshall is the group agribusiness writer for ACM's state agricultural weeklies and websites. He is a former editor at The Land and has worked in various Rural Press group roles in Canberra, North Richmond (NSW) and Toowoomba (Qld).
