Old-school genetics still delivering

By LIAM DANN primary industries editor

With all the debate surrounding the lifting of the GM moratorium, it is easy to forget that New Zealand farmers have modified genetics for more than 50 years.

They might do it the old-fashioned way - by selective breeding - but the science involved and results achieved are every bit as dramatic.

Livestock Improvement Corporation (LIC) at Newstead in the Waikato celebrated the 50th anniversary of its artificial breeding programme in September.

In half a century it has transformed the standard of dairy cows.

In 1971 the average New Zealand cow produced 2809 litres of milk. By 2002 average milk production was 3791 litres.

Genetic gain is estimated to generate $34 million in net profit for New Zealand dairy farmers each year.

LIC's breeding technology is used to generate a lot of traits other than just productivity, chief executive Stuart Gordon said.

"Genetic gain is determined by what the customer [ie the farmer] wants."

Farmers were looking for traits such as better udders, higher fertility, disease resistance and an even temperament, he said.

So far there was no limit to how far improvement by selective breeding could go.

"There is presently nothing in our knowledge that can limit our ability to improve genetics of stock - certainly in the near future," Gordon said.

Many new technologies, such as DNA technology, were enabling LIC to be more accurate in its breeding and to breed for increasingly specific traits, he said.

LIC has no plans to start using engineered genes.

"We're not applying that technology at the moment because there is no need," Gordon said.

"We're able to select for what we need naturally. But we support those that are researching because somewhere in the future there will be benefits to the consumer."

LIC has a biotechnology joint venture with Fonterra. Its company Boviquest works closely with Fonterra's Vialactia.

"It may be 10 years from now that we might be looking to apply the technology, but when the time comes you've got to know how to do it," Gordon said.

Fonterra gives LIC feedback on on what type of milk the industry wants.

"Whether it should have more protein or more fat, that kind of thing," Gordon said.

LIC also liaises with Fonterra on issues such as the health status of animals and keeping on-farm records.

"Basically it assures the bureaucrats in Brussels that our cows meet the same standards as their cows."

LIC is also developing its business through high-tech divisions that specialise in robotic milk analysis, gene identification and the development of software to allow farmers to easily record animal information out in the field.

LIC keeps a database with herd details of more than 20 million animals - the four million live animals and their ancestors.

If farmers approve, the co-operative will list on the stock exchange's AX board early next year.

Voting papers on the restructuring of LIC's share structure go out to farmers this week.

As with the wool industry science company WoolEquities, shares will be tradeable only among farmers.

The move would provide more transparency around the price of shares, Gordon said.

By making them tradeable, farmers can choose to invest in them as another form of equity.

Half of LIC's profit is returned to farmers as dividends, the other half is reinvested in research and development.