WEBVTT 00:00:11.720 --> 00:00:15.060 Breaking free from the chains of the past Where 00:00:15.060 --> 00:00:18.820 truth moves faster than a Holstein calf No law 00:00:18.820 --> 00:00:21.660 waiting on some printed page We're charting new 00:00:21.660 --> 00:00:25.300 ground in the digital age From genomic codes 00:00:25.300 --> 00:00:29.120 to robot facts We cut through the noise, no hold 00:00:29.280 --> 00:00:32.460 them back not your daddy's dairy news tonight 00:00:32.460 --> 00:01:03.429 we're sparking Welcome back to the Bullvine Podcast, 00:01:03.630 --> 00:01:05.650 where we cut through dairy industry noise to 00:01:05.650 --> 00:01:07.950 get you the insights that actually matter for 00:01:07.950 --> 00:01:10.209 your operation. And today we're diving deep into 00:01:10.209 --> 00:01:12.049 a feature piece about whether we've actually 00:01:12.049 --> 00:01:15.010 captured the profit genomics promised, or if 00:01:15.010 --> 00:01:18.989 that extra, what is it, $238 ,000 in industry 00:01:18.989 --> 00:01:23.329 -wide return is still just stuck, sitting untouched 00:01:23.329 --> 00:01:27.810 in your semen tank. That's it. The $238 ,000 00:01:27.810 --> 00:01:30.739 question. And it's provocative because, I mean, 00:01:30.739 --> 00:01:33.340 that figure represents the estimated compounded 00:01:33.340 --> 00:01:35.920 benefit that the entire global dairy industry 00:01:35.920 --> 00:01:39.439 has realized over what the first 15 years of 00:01:39.439 --> 00:01:41.560 using genomics. It's a massive number. It's huge. 00:01:41.680 --> 00:01:44.060 And it's a validating number. Genomics has been. 00:01:44.719 --> 00:01:46.620 you know, foundational to modern dairy since 00:01:46.620 --> 00:01:48.980 2008. It's not the new kid on the block anymore. 00:01:49.140 --> 00:01:51.019 No, it's absolutely the undisputed standard. 00:01:51.219 --> 00:01:52.659 But if it's a standard, then it's definitely 00:01:52.659 --> 00:01:54.359 time we check the balance sheet. Right. We've 00:01:54.359 --> 00:01:56.519 been running on rocket fuel. I mean, phenomenal 00:01:56.519 --> 00:01:59.200 speed and genetic gain, absolutely doubling the 00:01:59.200 --> 00:02:01.420 rate of improvement. But as a farmer, you know, 00:02:01.439 --> 00:02:03.579 I have to ask, did that speed come with a hidden 00:02:03.579 --> 00:02:06.420 cost? Are we breeding super producers that are, 00:02:06.480 --> 00:02:08.560 I don't know, secretly fragile? That's the fear, 00:02:08.719 --> 00:02:11.300 isn't it? Exactly. And the source material we're 00:02:11.300 --> 00:02:13.939 digging into today, it drives right at that tension 00:02:13.939 --> 00:02:16.759 point. Genomic selection has delivered the speed, 00:02:16.919 --> 00:02:20.340 for sure, but it also ramped up some unintended 00:02:20.340 --> 00:02:23.479 consequences. Like genetic concentration. Genetic 00:02:23.479 --> 00:02:26.199 concentration, rising in breeding. That trade 00:02:26.199 --> 00:02:31.680 -off is the real $238 ,000 problem. Are we getting 00:02:31.680 --> 00:02:34.439 that headline profit? Or are we just quietly 00:02:34.439 --> 00:02:37.020 losing it through higher vet bills and, well, 00:02:37.099 --> 00:02:39.379 earlier culling? And the timing for this deep 00:02:39.379 --> 00:02:42.400 dive is, I think, perfect because we finally 00:02:42.400 --> 00:02:44.680 have the tools to really manage this tradeoff 00:02:44.680 --> 00:02:46.419 effectively. You're talking about the new LPI? 00:02:46.819 --> 00:02:49.520 Yeah, Lactonet just modernized its Lifetime Performance 00:02:49.520 --> 00:02:53.580 Index, the LPI, back in April 2025. That gives 00:02:53.580 --> 00:02:56.139 us a brand new, really granular dashboard to 00:02:56.139 --> 00:02:58.560 see exactly where a bull excels and maybe more 00:02:58.560 --> 00:03:00.419 importantly, where he's deficient. Okay, wait, 00:03:00.460 --> 00:03:02.080 let's nail down the stakes one more time because 00:03:02.080 --> 00:03:03.680 that money is the reason anyone pays attention. 00:03:03.939 --> 00:03:06.759 The core claim is that genomic selection compared 00:03:06.759 --> 00:03:11.060 to the older, decade -old genetics. The pre -2008 00:03:11.060 --> 00:03:13.599 stuff. Right. Compared to that, it has delivered 00:03:13.599 --> 00:03:16.479 a couple thousand dollars more lifetime profit 00:03:16.479 --> 00:03:19.599 per cow. And that's based on ProDay, which... 00:03:19.879 --> 00:03:22.639 for anyone listening, uses real Canadian revenue 00:03:22.639 --> 00:03:26.400 and cost data. It's measuring expected lifetime 00:03:26.400 --> 00:03:29.939 profit up to six years of age or, you know, disposal. 00:03:30.300 --> 00:03:32.840 It's a serious claim. It is. And if you take 00:03:32.840 --> 00:03:35.599 that, let's say, conservative $2 ,000 difference 00:03:35.599 --> 00:03:39.719 and you multiply it across a 400 cow herd where 00:03:39.719 --> 00:03:42.139 you're replacing, what, maybe 120 cows a year, 00:03:42.300 --> 00:03:44.919 you're looking at an extra $50 ,000 to $100 ,000 00:03:44.919 --> 00:03:49.020 per year. $100 ,000 a year. Per year. An extra 00:03:49.020 --> 00:03:51.500 lifetime profit just rolling through your operation. 00:03:51.740 --> 00:03:53.759 I mean, that's capital for expansion. It's debt 00:03:53.759 --> 00:03:56.699 payment. It's a buffer against the next dip in 00:03:56.699 --> 00:03:58.599 the commodity cycle. That's exactly why we adopted 00:03:58.599 --> 00:04:00.400 it in the first place. Of course. But here's 00:04:00.400 --> 00:04:02.599 the critical caveat. This is the fine print that 00:04:02.599 --> 00:04:04.479 so often gets ignored. And the source material 00:04:04.479 --> 00:04:07.020 really drives this point home. That entire payoff. 00:04:07.259 --> 00:04:10.270 It's contingent on management. 100%. Genomics 00:04:10.270 --> 00:04:12.189 is loading the gun with this incredible potential, 00:04:12.530 --> 00:04:15.889 but your fresh tau program, your repro efficiency, 00:04:16.410 --> 00:04:18.750 your culling strategy, that's what pulls the 00:04:18.750 --> 00:04:21.490 trigger. So if you have a genetically elite heifer 00:04:21.490 --> 00:04:24.769 that leaves before her third lactation, because 00:04:24.769 --> 00:04:26.410 I know she can't handle the transition or she 00:04:26.410 --> 00:04:28.430 blows out her feet and legs. You haven't captured 00:04:28.430 --> 00:04:31.029 that two grand. It just, it evaporated. It's 00:04:31.029 --> 00:04:33.730 gone. And that is what takes us to the controversy. 00:04:34.170 --> 00:04:38.470 Because for too long. The industry has just chased 00:04:38.470 --> 00:04:41.949 this single highest index number. The flashiest 00:04:41.949 --> 00:04:44.589 bull in the cattle. Of a flashiest LPI or pro 00:04:44.589 --> 00:04:48.069 bull available. Exactly. And we're going to challenge 00:04:48.069 --> 00:04:50.029 that idea today because we're going to show you 00:04:50.029 --> 00:04:53.430 with hard data that the most used bulls, while 00:04:53.430 --> 00:04:56.170 they're driving incredible production gain, are 00:04:56.170 --> 00:04:58.389 also dragging down critical functional traits. 00:04:58.649 --> 00:05:00.889 Like fertility. Fertility, overall diversity. 00:05:01.550 --> 00:05:03.129 all of it yeah we're talking about the difference 00:05:03.129 --> 00:05:05.970 between breeding purely for rocket fuel genetics 00:05:05.970 --> 00:05:07.850 which gives you that incredible speed on paper 00:05:07.850 --> 00:05:11.329 versus breeding for workhorse genetics which 00:05:11.329 --> 00:05:13.449 you know guarantees long -term reliability and 00:05:13.449 --> 00:05:16.389 profit you need a mix right you absolutely need 00:05:16.389 --> 00:05:18.990 a mix and we'll show you exactly how to use these 00:05:18.990 --> 00:05:21.790 new genomic tools to stratify your herd and get 00:05:21.790 --> 00:05:24.230 both okay let's unpack this and jump into the 00:05:24.230 --> 00:05:27.670 core claim the promise of genomics And well, 00:05:27.750 --> 00:05:29.670 where the industry even started from. Let's do 00:05:29.670 --> 00:05:32.069 it. So let's start with the promise. The analysis 00:05:32.069 --> 00:05:34.810 of data, I mean, across North America, Europe, 00:05:34.949 --> 00:05:38.209 it's completely unambiguous. Genomic selection 00:05:38.209 --> 00:05:40.670 has roughly doubled the rate of genetic gain. 00:05:40.769 --> 00:05:43.699 Doubled. For everything that matters. No. fat, 00:05:43.720 --> 00:05:46.139 protein, and critically health and longevity 00:05:46.139 --> 00:05:48.920 traits compared to that old progny testing era. 00:05:49.060 --> 00:05:51.759 And that doubling is what underpins that massive, 00:05:51.920 --> 00:05:56.040 you know, $238 ,000 industry -wide ROI. When 00:05:56.040 --> 00:05:58.420 Lactanet runs those pro comparisons today, comparing 00:05:58.420 --> 00:06:01.000 a high index sire born this year to a bull proven 00:06:01.000 --> 00:06:03.600 just 10 years ago, that gap is where you get 00:06:03.600 --> 00:06:06.000 that couple thousand dollars more lifetime profit 00:06:06.000 --> 00:06:08.420 per cow. And I want to stress the cumulative 00:06:08.420 --> 00:06:10.579 nature of this. This is an exponential benefit. 00:06:11.019 --> 00:06:13.079 If you are consistently breeding daughters with 00:06:13.079 --> 00:06:15.459 $2 ,000 higher expected profit for five straight 00:06:15.459 --> 00:06:17.980 years, you have dramatically changed the base 00:06:17.980 --> 00:06:20.040 profitability of your entire operation. Which 00:06:20.040 --> 00:06:22.259 is how you get to that $50 ,000 to $100 ,000 00:06:22.259 --> 00:06:25.019 annual uplift we talked about. Exactly. It's 00:06:25.019 --> 00:06:27.000 the whole reason we made the technological investment 00:06:27.000 --> 00:06:29.060 in the first place. You know, I think to really 00:06:29.060 --> 00:06:31.519 appreciate this, we have to pause and look at 00:06:31.519 --> 00:06:34.699 the historical context. The time before genomics 00:06:34.699 --> 00:06:37.899 gave us these clear, objective numbers. You mean 00:06:37.899 --> 00:06:39.980 the banners versus bills split? That's it. The 00:06:39.980 --> 00:06:42.120 banners versus bills split on the farm. If you 00:06:42.120 --> 00:06:45.079 look back to, say, the late 2000s, the Goldwyn 00:06:45.079 --> 00:06:48.800 -Buckeye -Dolman era, before 2008. The era of 00:06:48.800 --> 00:06:51.920 the banner cows. Oh, yeah. This was a breeding 00:06:51.920 --> 00:06:55.470 philosophy that... heavily heavily prioritized 00:06:55.470 --> 00:06:58.649 true type confirmation the show ring cow the 00:06:58.649 --> 00:07:00.930 kind of cow that looked absolutely stunning in 00:07:00.930 --> 00:07:03.269 the show ring moderate yield was important sure 00:07:03.269 --> 00:07:06.449 but the type score especially feet and legs utter 00:07:06.449 --> 00:07:09.209 confirmation that was weighted so heavily and 00:07:09.209 --> 00:07:11.329 that's where the clash began those aesthetics 00:07:12.360 --> 00:07:14.839 They were expensive. Incredibly expensive. And 00:07:14.839 --> 00:07:17.199 the research is so clear. Those visually appealing 00:07:17.199 --> 00:07:19.579 cows, they often struggle. They struggled hard 00:07:19.579 --> 00:07:21.759 through the transition period in a high production, 00:07:21.819 --> 00:07:24.339 free stall environment. They needed so much intensive 00:07:24.339 --> 00:07:26.839 management. Oh, constantly. They were the ones 00:07:26.839 --> 00:07:31.339 prone to ketosis, DAs, persistent feet and leg 00:07:31.339 --> 00:07:33.379 issues that just required endless intervention. 00:07:33.819 --> 00:07:35.579 I remember running this boat sheets back then. 00:07:35.779 --> 00:07:39.399 The goal was this beautiful balance, right? But 00:07:39.399 --> 00:07:42.220 the commercial reality was that these cows simply 00:07:42.220 --> 00:07:45.379 did not routinely make it to the profitable fourth 00:07:45.379 --> 00:07:47.720 or fifth lactation. They looked great. They looked 00:07:47.720 --> 00:07:50.399 amazing, but they often left the herd before 00:07:50.399 --> 00:07:52.980 they even paid off their rearing costs. And that's 00:07:52.980 --> 00:07:55.379 the entire profit paradox right there, isn't 00:07:55.379 --> 00:07:58.199 it? We spend two years feeding and rearing her, 00:07:58.300 --> 00:08:01.180 investing all this money in her future, only 00:08:01.180 --> 00:08:03.459 to have her leave because of a reproductive failure 00:08:03.459 --> 00:08:06.680 or chronic mastitis in her second lactation. 00:08:06.720 --> 00:08:09.579 The financial clock. just stops ticking before 00:08:09.579 --> 00:08:12.259 she even achieves true margin. It's a total loss. 00:08:12.420 --> 00:08:14.199 And the research backs this up definitively. 00:08:14.220 --> 00:08:15.759 I mean, whether it's University of Gulf studies 00:08:15.759 --> 00:08:19.480 or analysis from Ag Canada, lifetime profitability 00:08:19.480 --> 00:08:21.959 is fundamentally tied to maximizing productive 00:08:21.959 --> 00:08:24.500 life. And optimizing days dry and minimizing 00:08:24.500 --> 00:08:27.120 age at first calving. Reducing reproductive interventions. 00:08:27.439 --> 00:08:29.540 All of it. If a cow leaves early, you lose that 00:08:29.540 --> 00:08:32.009 margin. Full stop. That's why you had producers 00:08:32.009 --> 00:08:35.110 like Don Benink, who ran that massive commercial 00:08:35.110 --> 00:08:37.509 operation. He was a lightning rod in the industry 00:08:37.509 --> 00:08:41.090 years ago. He was. He was arguing, and forcefully, 00:08:41.230 --> 00:08:44.009 that the true profit drivers are high production 00:08:44.009 --> 00:08:46.750 coupled with strong health traits and feed efficiency. 00:08:47.230 --> 00:08:50.470 Not chasing show ribbons. He said the show ring 00:08:50.470 --> 00:08:52.889 created a bottleneck in commercial profitability. 00:08:53.350 --> 00:08:56.059 And he was right. Genomics didn't invent the 00:08:56.059 --> 00:08:58.759 idea of functional profit, but it accelerated 00:08:58.759 --> 00:09:01.179 the industry's shift away from that subjective 00:09:01.179 --> 00:09:03.720 visual appraisal. It moved us toward objective, 00:09:03.980 --> 00:09:06.320 functional economic traits. It gave us the tools 00:09:06.320 --> 00:09:08.769 to select for health. longevity, efficiency, 00:09:09.049 --> 00:09:12.110 with much higher accuracy and critically at a 00:09:12.110 --> 00:09:14.730 much, much younger age. It was a monumental shift. 00:09:14.909 --> 00:09:17.009 I mean, it replaced the guesswork of a pedigree 00:09:17.009 --> 00:09:19.570 with a facts -first approach that prioritized 00:09:19.570 --> 00:09:21.830 what actually pays the bills. It took us from 00:09:21.830 --> 00:09:24.230 a six to 10 -year proof cycle down to immediate 00:09:24.230 --> 00:09:26.750 data on a calf. That's the foundation of the 00:09:26.750 --> 00:09:30.809 $238 ,000 ROI. It is. So if the foundation is 00:09:30.809 --> 00:09:32.750 that sound, why are we even having this deep 00:09:32.750 --> 00:09:34.990 dive about profit being left on the table? Because 00:09:34.990 --> 00:09:38.009 the problem lies in the industry's response to 00:09:38.009 --> 00:09:40.129 all that new speed. Right. So let's talk about 00:09:40.129 --> 00:09:42.450 the mechanics that deliver this speed boost. 00:09:42.649 --> 00:09:45.210 It's important to understand how the velocity 00:09:45.210 --> 00:09:47.710 was achieved before we analyze the consequences. 00:09:48.129 --> 00:09:51.250 Okay. Genomic evaluation allowed the sire of 00:09:51.250 --> 00:09:54.450 sun's generation interval to be cut in half. 00:09:54.809 --> 00:09:56.669 And that is the core metric. It's everything. 00:09:56.809 --> 00:10:00.299 They drop from that. I mean, agonizing old six 00:10:00.299 --> 00:10:02.539 to ten year span. Waiting forever for daughters 00:10:02.539 --> 00:10:04.659 to calve. Waiting for them to calve, milk, and 00:10:04.659 --> 00:10:07.440 be proven. All the way down to about two and 00:10:07.440 --> 00:10:10.299 a half to three years. That shift is absolutely 00:10:10.299 --> 00:10:12.720 revolutionary. It's hard to overstate. You can't. 00:10:12.820 --> 00:10:15.059 When you cut the time between generations that 00:10:15.059 --> 00:10:17.220 sharply and then you combine it with higher selection 00:10:17.220 --> 00:10:20.179 intensity because you can test hundreds of bulls 00:10:20.179 --> 00:10:23.279 instantly, genetic gain naturally just explodes. 00:10:23.360 --> 00:10:25.240 You're cycling through improvements at three 00:10:25.240 --> 00:10:27.399 times the rate. And we can track this explosion 00:10:27.399 --> 00:10:30.460 so clearly using Canadian data. If you compare 00:10:30.460 --> 00:10:32.940 the performance of the 20 most used sires in 00:10:32.940 --> 00:10:36.539 2008 versus the top 20 in 2024, the progress 00:10:36.539 --> 00:10:39.419 is, it's just startling. Okay, lay it on me. 00:10:39.600 --> 00:10:42.000 All right, look at the LPI jump alone. The average 00:10:42.000 --> 00:10:45.960 LPI of those top bulls climbed from about 1 ,985 00:10:45.960 --> 00:10:52.570 in 2008 to roughly 3 ,531 in 2024. Wow. That's 00:10:52.570 --> 00:10:55.590 nearly 1 ,600 LPI points in 16 years. Which means 00:10:55.590 --> 00:10:58.370 an average gain of plus 97 LPI points per year 00:10:58.370 --> 00:11:00.509 among the bulls that farmers were actually selecting. 00:11:00.690 --> 00:11:02.669 And the pro swing is even more crucial, right? 00:11:02.750 --> 00:11:04.309 Because that's the dollars. That's the dollars. 00:11:04.549 --> 00:11:06.970 It swung from a negative average of about negative 00:11:06.970 --> 00:11:11.409 $1 ,558 in 2008, meaning those bulls were predicted 00:11:11.409 --> 00:11:13.090 to lose money over their daughter's lifetime. 00:11:13.370 --> 00:11:15.590 Which is crazy to think about now. Isn't it? 00:11:15.690 --> 00:11:18.309 It swung all the way to a highly positive average 00:11:18.309 --> 00:11:22.840 of plus $1 ,970 in 2024. That is a total swing 00:11:22.840 --> 00:11:25.399 of over $3 ,500 in predicted daughter lifetime 00:11:25.399 --> 00:11:28.379 profit across the most used sires. Which translates 00:11:28.379 --> 00:11:32.580 to a gain of, what, plus $221 per year? $221 00:11:32.580 --> 00:11:34.720 a year. It's staggering. And production proofs 00:11:34.720 --> 00:11:37.179 mirrored this, I assume. Completely. In 2008, 00:11:37.340 --> 00:11:39.259 the top 20 bulls were negative for milk yield, 00:11:39.399 --> 00:11:43.360 maybe negative 578 kilos. By 2024, they were 00:11:43.360 --> 00:11:46.320 driving massive gains, plus 860 kilos of milk, 00:11:46.399 --> 00:11:49.500 plus 85 kilos of fat, plus 50 kilos of protein. 00:11:49.980 --> 00:11:52.500 So the genetics breeders chose went from being 00:11:52.500 --> 00:11:55.259 a subtle drag to a significant forward driver. 00:11:55.899 --> 00:11:59.200 We're adding nearly 90 kilograms of milk improvement 00:11:59.200 --> 00:12:02.659 every single year through sire selection alone. 00:12:03.019 --> 00:12:06.220 The data is incredible. It absolutely validates 00:12:06.220 --> 00:12:08.940 the investment. Yeah. But. There's always a but. 00:12:09.159 --> 00:12:11.679 There's always a but. The question is, did we 00:12:11.679 --> 00:12:14.220 get so focused on the speed dial that we forgot 00:12:14.220 --> 00:12:16.639 to check the dashboard for warning lights? And 00:12:16.639 --> 00:12:18.519 here comes the red flashing light. Here it is. 00:12:18.559 --> 00:12:21.190 The diversity question. When you select that 00:12:21.190 --> 00:12:24.629 intensely, constantly chasing the absolute highest 00:12:24.629 --> 00:12:27.710 index numbers, you necessarily narrow the gene 00:12:27.710 --> 00:12:30.409 pool. This is what geneticists talk about when 00:12:30.409 --> 00:12:32.870 they use the term effective population size or 00:12:32.870 --> 00:12:35.710 EPS. Right. Can you give us an analogy for EPS 00:12:35.710 --> 00:12:38.029 for the farmer listening who might not be a geneticist? 00:12:38.090 --> 00:12:39.769 Sure. Think of it like a business investment. 00:12:39.909 --> 00:12:42.409 If you have an EPS of 100, that's like having 00:12:42.409 --> 00:12:44.549 your retirement money spread across 100 different 00:12:44.549 --> 00:12:47.549 companies. If one of them fails. It's not catastrophic. 00:12:47.809 --> 00:12:50.470 Okay, makes sense. Geneticists, like at the FAO, 00:12:50.590 --> 00:12:53.389 suggest you want an EPS of 100 or more to maintain 00:12:53.389 --> 00:12:55.889 long -term health and the ability to adapt to 00:12:55.889 --> 00:12:58.309 changes like a new disease or a shift in feed 00:12:58.309 --> 00:13:01.429 ingredients. But if you drop below 50... That's 00:13:01.429 --> 00:13:03.710 a problem. That's like putting 90 % of your retirement 00:13:03.710 --> 00:13:05.990 fund into one stock that's doing great right 00:13:05.990 --> 00:13:08.950 now. If that one stock tanks, you're wiped out. 00:13:09.070 --> 00:13:11.250 And the international data... When you look at 00:13:11.250 --> 00:13:13.470 the genetic history of major breeds like Dutch 00:13:13.470 --> 00:13:16.450 and Italian whole signs, it shows that EPS is 00:13:16.450 --> 00:13:19.529 often already below 100 in the genomic era. And 00:13:19.529 --> 00:13:21.649 the trend is still downward. Still downward. 00:13:22.279 --> 00:13:24.460 The intense selection pressures mean everyone 00:13:24.460 --> 00:13:27.200 is chasing the success of the same few highly 00:13:27.200 --> 00:13:29.580 related sire lines. And the result of that is 00:13:29.580 --> 00:13:31.580 directly visible in the accelerating inbreeding 00:13:31.580 --> 00:13:34.440 rates. It's rising faster now, about 0 .3 to 00:13:34.440 --> 00:13:37.080 0 .5 percentage points annually. That's 1 .5 00:13:37.080 --> 00:13:40.320 % to 2 .5 % per generation. We are actively creating 00:13:40.320 --> 00:13:42.480 fragility by relying on these tight families. 00:13:42.740 --> 00:13:44.639 And the Canadian context here is highly relevant. 00:13:44.860 --> 00:13:48.299 The 20 most used sires in 2024, the heroes of 00:13:48.299 --> 00:13:50.179 that phenomenal LPI game we just talked about. 00:13:50.500 --> 00:13:52.960 Their daughters have an average expected inbreeding 00:13:52.960 --> 00:13:57.799 coefficient of 11 .5%. 11 .5. And the breed average 00:13:57.799 --> 00:14:01.600 is already considered high at 10 .6. So the very 00:14:01.600 --> 00:14:04.500 bulls pushing the most progress are also pushing 00:14:04.500 --> 00:14:07.779 us further into this undesirable genetic territory. 00:14:08.399 --> 00:14:11.080 Wait, let me just ground that 11 .5 % number. 00:14:11.299 --> 00:14:13.399 What does high inbreeding actually look like 00:14:13.399 --> 00:14:15.059 on the farm? Yeah, what's the practical impact? 00:14:15.340 --> 00:14:18.059 It looks like a lack of robustness. It translates 00:14:18.059 --> 00:14:21.340 to more fertility trouble, more flushes, more 00:14:21.340 --> 00:14:23.840 cinch programs, more vet checks, trying to get 00:14:23.840 --> 00:14:26.379 them bred back. They just don't bounce back as 00:14:26.379 --> 00:14:29.700 easily from fresh cow stress or a bout of mastitis. 00:14:29.840 --> 00:14:33.139 They are fundamentally less resilient. So you 00:14:33.139 --> 00:14:35.059 buy the bull that's supposed to give you $2 ,000 00:14:35.059 --> 00:14:37.860 more profit, but if that bull's daughters require 00:14:37.860 --> 00:14:40.820 $500 more in reproductive intervention and they 00:14:40.820 --> 00:14:42.399 leave six months early because they're fragile. 00:14:42.580 --> 00:14:45.019 You've just funded the AI industry without capturing 00:14:45.019 --> 00:14:47.299 any of the realized profit yourself. That's the 00:14:47.299 --> 00:14:49.220 insidious part of this trade -off, isn't it? 00:14:49.299 --> 00:14:51.600 It is. It doesn't show up as one catastrophic 00:14:51.600 --> 00:14:54.240 failure. It shows up as constant small management 00:14:54.240 --> 00:14:56.399 headaches and creeping labor costs that just 00:14:56.399 --> 00:14:58.659 chip away at the margin until that cow is cold. 00:14:58.899 --> 00:15:01.340 That seems like a contradiction, though. The 00:15:01.340 --> 00:15:03.360 source material notes that while the gene pool 00:15:03.360 --> 00:15:05.779 might be tightening at the ancestry level, producers 00:15:05.779 --> 00:15:08.500 are actually using more unique bulls. Right. 00:15:08.580 --> 00:15:11.080 The share of registrations from the top 20 sires 00:15:11.080 --> 00:15:15.039 dropped. It dropped from 33 .5 % in 2008 down 00:15:15.039 --> 00:15:19.490 to 22 .6 % in 2024. So isn't that just... paying 00:15:19.490 --> 00:15:21.610 lip service to diversity, are we actually doing 00:15:21.610 --> 00:15:23.269 something about it? That's a great challenge. 00:15:23.450 --> 00:15:25.490 And it shows that producers know they shouldn't 00:15:25.490 --> 00:15:27.490 put all their eggs in one basket. They are trying 00:15:27.490 --> 00:15:29.549 to spread the risk. So they're buying more bulls. 00:15:29.570 --> 00:15:31.909 They're buying more bulls. But if those different 00:15:31.909 --> 00:15:35.250 bulls, let's say Bull A, Bull B, and Bull C all 00:15:35.250 --> 00:15:37.490 share the same handful of great -grandparents, 00:15:37.690 --> 00:15:40.149 the concentration risk is still high. It's the 00:15:40.149 --> 00:15:42.460 same genetic code being recycled. under different 00:15:42.460 --> 00:15:45.419 names. Ah, so the concentration issue isn't about 00:15:45.419 --> 00:15:48.759 using fewer bulls. It's about using bulls who 00:15:48.759 --> 00:15:52.240 are all too closely related at the deep genomic 00:15:52.240 --> 00:15:55.159 level. It's the ancestry that matters. And we're 00:15:55.159 --> 00:15:57.720 still relying on the same few successful cow 00:15:57.720 --> 00:15:59.740 families that currently drive the top of the 00:15:59.740 --> 00:16:02.600 LPI list. Which means we've engineered incredible 00:16:02.600 --> 00:16:05.779 speed, but we've neglected the essential insurance 00:16:05.779 --> 00:16:08.620 policy of genetic diversity. Leaving the overall 00:16:08.620 --> 00:16:11.759 herd vulnerable. And that takes us to the other 00:16:11.759 --> 00:16:15.179 hidden costs. Speaking of hidden costs, let's 00:16:15.179 --> 00:16:17.000 talk about the hidden passengers that genomics 00:16:17.000 --> 00:16:19.139 revealed. This is another area where farmers 00:16:19.139 --> 00:16:21.639 are losing thousands of dollars unnecessarily. 00:16:21.840 --> 00:16:25.100 Haplotypes and recessive defects. Exactly. These 00:16:25.100 --> 00:16:28.240 are real, quantifiable money drains. And before 00:16:28.240 --> 00:16:30.279 genomics, we just chalked them up to bad luck 00:16:30.279 --> 00:16:32.559 or management failures. Oh, yeah. Now, genomics 00:16:32.559 --> 00:16:35.139 allowed us to expose things like the six Holstein 00:16:35.139 --> 00:16:38.620 haplotypes, HH1 through HH6, and defects like 00:16:38.620 --> 00:16:42.100 cholesterol deficiency or CDHCD. The financial 00:16:42.100 --> 00:16:45.039 loss comes because if a sire and a dam are both 00:16:45.039 --> 00:16:48.360 carriers, the resulting embryo or calf is either 00:16:48.360 --> 00:16:50.840 lethal or severely impaired. the cholesterol 00:16:50.840 --> 00:16:53.299 deficiency story is the classic cautionary tale 00:16:53.299 --> 00:16:56.019 right it traced back through famous highly used 00:16:56.019 --> 00:16:58.399 lines like mufflin storm and the carriers look 00:16:58.399 --> 00:17:01.220 completely normal often high index powerful animals 00:17:01.220 --> 00:17:03.620 but when you bred a carrier to a carrier the 00:17:03.620 --> 00:17:06.250 calves either died in the womb Or if they made 00:17:06.250 --> 00:17:07.970 it to birth, they struggled with chronic diarrhea, 00:17:08.250 --> 00:17:11.089 failed to metabolize fat properly, and they were 00:17:11.089 --> 00:17:14.269 dead within weeks. I remember before we had reliable 00:17:14.269 --> 00:17:17.230 CD testing, walking into the calving pen and 00:17:17.230 --> 00:17:19.509 seeing a few of those weak calves failing to 00:17:19.509 --> 00:17:21.910 thrive and just knowing intuitively that that 00:17:21.910 --> 00:17:24.450 semen order had been a financial mistake. Yeah. 00:17:24.509 --> 00:17:26.549 You lost the calf. You lost the pregnancy. You 00:17:26.549 --> 00:17:28.750 increased your days open. You wasted the expensive 00:17:28.750 --> 00:17:33.400 semen. On a 400 -cow herd, losing even 2 or 3 00:17:33.400 --> 00:17:36.299 percent of pregnancies due to these lethal haplotypes. 00:17:36.680 --> 00:17:40.200 That translates to thousands of dollars. Thousands 00:17:40.200 --> 00:17:43.539 in wasted inputs, extra labor for breeding, longer 00:17:43.539 --> 00:17:46.319 calving intervals. And it's not just CD. The 00:17:46.319 --> 00:17:48.279 six haplotypes all have slightly different failure 00:17:48.279 --> 00:17:51.680 mechanisms. HH5 is often linked to stillbirths. 00:17:51.940 --> 00:17:54.799 HH1 might cause an earlier embryonic loss, but 00:17:54.799 --> 00:17:56.960 the effect is the same. It's avoidable failure. 00:17:57.450 --> 00:17:59.509 The good news is that genomics give us the tool 00:17:59.509 --> 00:18:01.690 to find the problem, and the solution is cheap 00:18:01.690 --> 00:18:06.250 and available. Right. Major AI studs test routinely, 00:18:06.569 --> 00:18:09.529 carrier status is published, and mating programs 00:18:09.529 --> 00:18:12.950 can automatically block carrier by carrier matings. 00:18:13.269 --> 00:18:16.930 Ignoring this data in 2026 isn't bad luck. It's 00:18:16.930 --> 00:18:19.410 economic negligence. It's like ignoring a high 00:18:19.410 --> 00:18:22.309 somatic cell count. And preventing just a handful 00:18:22.309 --> 00:18:25.059 of those lost pregnancies. instantly pays for 00:18:25.059 --> 00:18:27.720 the cost of heifer testing and the software configuration. 00:18:28.500 --> 00:18:30.779 I don't understand why anyone would skip that 00:18:30.779 --> 00:18:32.660 step. They skip it because they're chasing the 00:18:32.660 --> 00:18:34.640 top line index and they think managing defects 00:18:34.640 --> 00:18:37.359 is too complicated or too expensive, which is 00:18:37.359 --> 00:18:39.619 exactly why we need a better dashboard to manage 00:18:39.619 --> 00:18:41.640 these tradeoffs. And this brings us right back 00:18:41.640 --> 00:18:44.599 to that modernized LPI DAC board that Lactonet 00:18:44.599 --> 00:18:48.180 released in April 2025. This entire push toward 00:18:48.180 --> 00:18:50.880 better visibility is driven by the reality that 00:18:50.880 --> 00:18:53.779 the old index structure just wasn't giving producers 00:18:53.779 --> 00:18:55.900 enough insight into these specific functional 00:18:55.900 --> 00:18:58.519 tradeoffs. Like reproduction and health. Precisely. 00:18:58.539 --> 00:19:01.039 So the new framework splits it into six highly 00:19:01.039 --> 00:19:03.500 detailed sub -indexes for Holsteins. I think 00:19:03.500 --> 00:19:04.779 we should walk through them because this is how 00:19:04.779 --> 00:19:06.519 you capture that full profit potential. Go for 00:19:06.519 --> 00:19:09.539 it. Okay, number one, the production index, or 00:19:09.539 --> 00:19:12.319 PI, is still there. Milk, yield, fat, and protein. 00:19:12.480 --> 00:19:15.200 That's the engine. Number two, the longevity 00:19:15.200 --> 00:19:18.619 and type index, or LTI, now bundles productive 00:19:18.619 --> 00:19:21.480 life and confirmation together. So feet, legs, 00:19:21.640 --> 00:19:24.299 udder. Exactly. Then you get the functional traits, 00:19:24.480 --> 00:19:28.579 the health and welfare index, HWI, the reproduction 00:19:28.579 --> 00:19:32.980 index, RI, the milkability index, MI, and then 00:19:32.980 --> 00:19:35.220 the new one, the environmental impact index, 00:19:35.319 --> 00:19:37.819 or EII. What's fascinating to me is that the 00:19:37.819 --> 00:19:40.039 correlation with the old LPI is still really 00:19:40.039 --> 00:19:42.599 high, like 0 .98. The strong bulls are still 00:19:42.599 --> 00:19:45.180 strong. But now... Now you can see their Achilles 00:19:45.180 --> 00:19:48.289 heel immediately. Immediately. If you're struggling 00:19:48.289 --> 00:19:50.710 with open days, you can see a Bulls RI score 00:19:50.710 --> 00:19:53.329 without having to decipher 20 separate proofs. 00:19:53.349 --> 00:19:55.950 And that new inclusion of the Environmental Impact 00:19:55.950 --> 00:19:58.950 Index, the EII, that's incredibly forward -looking. 00:19:59.029 --> 00:20:01.130 That's directly selecting for traits related 00:20:01.130 --> 00:20:03.650 to feed efficiency and methane output. Things 00:20:03.650 --> 00:20:05.529 we couldn't even measure accurately 15 years 00:20:05.529 --> 00:20:07.390 ago. Exactly. But these are the things that will 00:20:07.390 --> 00:20:09.410 dictate profitability in the next five years 00:20:09.410 --> 00:20:11.670 as processors and regulators start to reward 00:20:11.670 --> 00:20:14.599 that efficiency. Okay, so let's apply the new 00:20:14.599 --> 00:20:17.819 dashboard to the past. We looked at the 20 most 00:20:17.819 --> 00:20:23.019 used Canadian sires in 2024. The heroes who drove 00:20:23.019 --> 00:20:27.319 that $3 ,500 pro game. How do they stack up on 00:20:27.319 --> 00:20:30.759 this new detailed six -point dashboard? the pattern 00:20:30.759 --> 00:20:33.700 is crystal clear and it explains exactly why 00:20:33.700 --> 00:20:35.920 that profit is being left on the table they are 00:20:35.920 --> 00:20:39.460 universally elite for lpi pro pi and lti the 00:20:39.460 --> 00:20:41.220 production and type stuff the stuff we've been 00:20:41.220 --> 00:20:43.380 selecting for they're roughly breed average for 00:20:43.380 --> 00:20:45.960 health and welfare and milkability but here's 00:20:45.960 --> 00:20:48.400 the kicker okay they are significantly below 00:20:48.400 --> 00:20:50.440 breed average for reproduction and environmental 00:20:50.440 --> 00:20:52.640 impact wait say that again they're below breed 00:20:52.640 --> 00:20:54.920 average for reproduction significantly below 00:20:54.920 --> 00:20:56.720 that is the definition of a high performance 00:20:56.720 --> 00:20:59.279 fragile machine right if they are significantly 00:20:59.559 --> 00:21:01.740 the low breed average for reproduction, that 00:21:01.740 --> 00:21:04.019 means we have consistently used bulls that generate 00:21:04.019 --> 00:21:06.920 more milk, but whose daughters require more labor, 00:21:07.119 --> 00:21:09.420 more hormones, and more time to get pregnant. 00:21:09.660 --> 00:21:12.559 That's exactly it. We traded longevity and fertility 00:21:12.559 --> 00:21:15.519 for speed in the tank. We accepted that the top 00:21:15.519 --> 00:21:17.920 index bull might mean more open days and more 00:21:17.920 --> 00:21:20.740 vet intervention because the overall LPI was 00:21:20.740 --> 00:21:22.279 so high we thought we could just manage around 00:21:22.279 --> 00:21:25.680 the deficiency. But if you keep stacking high 00:21:25.680 --> 00:21:29.410 production, below average fertility sires, onto 00:21:29.410 --> 00:21:31.509 your daughters who already share that same trait 00:21:31.509 --> 00:21:33.490 profile. You're just compounding the problem 00:21:33.490 --> 00:21:36.390 exponentially. So if the greed average RI score 00:21:36.390 --> 00:21:39.309 is 100, where are these top 20 bulls sitting? 00:21:39.630 --> 00:21:42.470 Many are dipping into the high 80s or low 90s. 00:21:42.470 --> 00:21:44.950 Some are even lower. And that difference, 10 00:21:44.950 --> 00:21:48.730 to 15 points below average, is huge. It translates 00:21:48.730 --> 00:21:51.569 directly to extra days open or a higher culling 00:21:51.569 --> 00:21:53.849 rate based on reproductive failure. And for the 00:21:53.849 --> 00:21:56.589 EAI. Same story. They score low because they 00:21:56.589 --> 00:21:58.529 weren't selected for feed efficiency. They were 00:21:58.529 --> 00:22:00.509 selected purely for output, regardless of the 00:22:00.509 --> 00:22:03.029 input cost. That sets the stage perfectly for 00:22:03.029 --> 00:22:05.720 the progressive strategy. If index chasing is 00:22:05.720 --> 00:22:07.740 creating these high maintenance cows and isn't 00:22:07.740 --> 00:22:10.240 fully capturing the profit, we have to stop being 00:22:10.240 --> 00:22:12.720 passive consumers of semen catalogs. We have 00:22:12.720 --> 00:22:15.759 to actively steer the breeding bus. This is where 00:22:15.759 --> 00:22:18.779 the truly profitable herds, the ones actually 00:22:18.779 --> 00:22:22.259 making that full $50 ,000 to $100 ,000 ROI, are 00:22:22.259 --> 00:22:24.200 differentiating themselves. They're not just 00:22:24.200 --> 00:22:26.240 circling the top two index numbers. No, they're 00:22:26.240 --> 00:22:29.000 actively using the full genomic dashboard to 00:22:29.000 --> 00:22:31.680 protect those functional traits. So let's dive 00:22:31.680 --> 00:22:33.799 into the four progressive strategies they're 00:22:33.799 --> 00:22:36.339 using. Okay, strategy number one. Don't stop 00:22:36.339 --> 00:22:39.000 at the top -line index. The LPI or PRO gets you 00:22:39.000 --> 00:22:41.700 in the ballpark, but you absolutely have to use 00:22:41.700 --> 00:22:44.180 the sub -indexes to fix your specific herd problems. 00:22:44.480 --> 00:22:47.039 No two farms are the same. Okay, I'll challenge 00:22:47.039 --> 00:22:49.589 the premise. Why shouldn't I just take the top 00:22:49.589 --> 00:22:52.430 pro bull and focus my management time on fertility 00:22:52.430 --> 00:22:54.769 instead of worrying about the index weights? 00:22:55.029 --> 00:22:57.390 Because management time is labor, and labor is 00:22:57.390 --> 00:23:00.109 the most expensive variable we have. If you can 00:23:00.109 --> 00:23:02.329 breed a cow that requires less labor and less 00:23:02.329 --> 00:23:04.849 vet intervention, you've created real profit. 00:23:05.049 --> 00:23:07.349 So if your top three herd problems are, say, 00:23:07.490 --> 00:23:10.589 lameness, poor repro, and cows leaving before 00:23:10.589 --> 00:23:12.549 their third lactation, then you need to load 00:23:12.549 --> 00:23:16.109 weight onto LTI, HWI, and RI first. You need 00:23:16.109 --> 00:23:18.490 bulls that are solid on prodol but are elite 00:23:18.490 --> 00:23:20.809 in the areas where your herd is weakest. Let's 00:23:20.809 --> 00:23:23.210 use a real -world example, the robotic milking 00:23:23.210 --> 00:23:27.049 barn scenario. Perfect. A robot herd's absolute 00:23:27.049 --> 00:23:29.849 bottleneck is box throughput. If you have slow 00:23:29.849 --> 00:23:32.509 milkers, you lose money by the hour because you 00:23:32.509 --> 00:23:34.529 aren't cycling enough cows through the unit. 00:23:34.730 --> 00:23:37.329 Right, time is money. So that operation is going 00:23:37.329 --> 00:23:40.289 to prioritize the milkability index, the MI speed, 00:23:40.609 --> 00:23:43.470 temperament. utter compatibility even ahead of 00:23:43.470 --> 00:23:46.809 the absolute highest LPI number. A bull that's 00:23:46.809 --> 00:23:51.029 plus 3 ,000 LPI but mediocre on MI is less profitable 00:23:51.029 --> 00:23:54.269 for them than a bull that's plus 2 ,800 LPI but 00:23:54.269 --> 00:23:56.730 elite on MI. Because the MI is their biggest 00:23:56.730 --> 00:24:00.369 profit lever. It is. Or take a quota -based operation 00:24:00.369 --> 00:24:03.289 shipping into a butterfat heavy market. They're 00:24:03.289 --> 00:24:05.750 going to load weight onto fat percent, the reproduction 00:24:05.750 --> 00:24:08.589 index, and that new environmental impact index. 00:24:08.849 --> 00:24:10.470 Because they need efficiency and they get paid 00:24:10.470 --> 00:24:13.029 for components. Exactly. They are future -proofing 00:24:13.029 --> 00:24:15.609 against high feed costs and possible carbon regulation. 00:24:15.990 --> 00:24:18.049 They are customizing the index to match their 00:24:18.049 --> 00:24:20.609 revenue stream and their liabilities. The index 00:24:20.609 --> 00:24:23.009 is a tool, not a religion. Okay, what's strategy 00:24:23.009 --> 00:24:25.910 two? Strategy two, and this is crucial for managing 00:24:25.910 --> 00:24:29.450 the diversity issue. Set clear inbreeding and 00:24:29.450 --> 00:24:32.549 relationship limits. You must use your mating 00:24:32.549 --> 00:24:35.609 software to cap expected inbreeding for any individual 00:24:35.609 --> 00:24:38.920 mating. We already know 11 .5 % is too high. 00:24:39.059 --> 00:24:41.740 And the common practical target cited in the 00:24:41.740 --> 00:24:44.119 source material for maintaining robustness is 00:24:44.119 --> 00:24:46.700 keeping expected inbreeding for any mating under 00:24:46.700 --> 00:24:49.880 about 8%. And that 3 or 4 % reduction in expected 00:24:49.880 --> 00:24:51.920 inbreeding is the difference between a cow that 00:24:51.920 --> 00:24:54.180 struggles and a cow that just glides through 00:24:54.180 --> 00:24:56.660 transition. And what about sire usage? You also 00:24:56.660 --> 00:24:59.400 need to cap that. Don't let any single bull account 00:24:59.400 --> 00:25:02.059 for more than, say, 5 to 10 % of your replacements 00:25:02.059 --> 00:25:04.940 in a given year. If you rely too heavily on one 00:25:04.940 --> 00:25:08.599 line, you risk a catastrophic, unforeseen genetic 00:25:08.599 --> 00:25:11.900 failure, like a new lethal haplotype emerging 00:25:11.900 --> 00:25:14.039 that could wipe out a quarter of your next generation. 00:25:14.480 --> 00:25:16.579 Use the data to balance across different cow 00:25:16.579 --> 00:25:18.740 families. even if they all have great indexes. 00:25:19.039 --> 00:25:21.240 Precisely. Okay, strategy three. This one is 00:25:21.240 --> 00:25:24.380 simple but essential. Treat haplotypes as standard 00:25:24.380 --> 00:25:27.470 inputs. We already talked about the cost of HH1 00:25:27.470 --> 00:25:29.890 through HH6 and cholesterol deficiency. This 00:25:29.890 --> 00:25:32.250 is non -negotiable risk avoidance. It impacts 00:25:32.250 --> 00:25:35.190 your bottom line directly. In 2026, skipping 00:25:35.190 --> 00:25:37.730 this is just financial self -sabotage. You have 00:25:37.730 --> 00:25:40.390 to genomically test all your replacement heifers 00:25:40.390 --> 00:25:42.490 to get their carrier status. You have to ensure 00:25:42.490 --> 00:25:45.710 your AI reports clearly mark carriers. And then 00:25:45.710 --> 00:25:47.369 most importantly... You have to actually use 00:25:47.369 --> 00:25:50.029 the tool. You have to turn on the block carrier 00:25:50.029 --> 00:25:53.490 by carrier. filter in your mating programs, it 00:25:53.490 --> 00:25:55.750 takes five minutes to configure and it saves 00:25:55.750 --> 00:25:58.829 you lost pregnancies, wasted semen, and the labor 00:25:58.829 --> 00:26:00.809 that goes with rebreeding. If a mating program 00:26:00.809 --> 00:26:02.930 costs a couple hundred dollars a year and it 00:26:02.930 --> 00:26:05.529 prevents, what, three lost pregnancies that each 00:26:05.529 --> 00:26:08.710 cost you $300? The ROI on that decision is over 00:26:08.710 --> 00:26:11.029 a thousand percent. It's an absolute no -brainer. 00:26:11.130 --> 00:26:12.910 Okay, let's get to strategy four, which you said 00:26:12.910 --> 00:26:15.130 is the most critical for capturing the full ROI. 00:26:15.369 --> 00:26:18.319 This is it. mix rocket fuel and workhorse genetics 00:26:18.319 --> 00:26:21.400 on purpose. So this is deliberate genetic stratification. 00:26:21.920 --> 00:26:25.299 Deliberate. You use the very highest index rocket 00:26:25.299 --> 00:26:29.259 fuel sires, the top LPI pro bulls, but you use 00:26:29.259 --> 00:26:32.500 them strategically, only on your absolute best 00:26:32.500 --> 00:26:35.160 genomic heifers and your strongest cow families. 00:26:35.319 --> 00:26:37.500 The animals that can handle it. the ones that 00:26:37.500 --> 00:26:39.539 will pull the genetic sealing of your herd forward 00:26:39.539 --> 00:26:42.240 fast. They can handle the genetic stress because 00:26:42.240 --> 00:26:45.000 they come from robust, clean lines. But then... 00:26:45.000 --> 00:26:47.160 And use the workhorses. You use a broader group 00:26:47.160 --> 00:26:49.500 of balanced workhorse sires, the ones that are 00:26:49.500 --> 00:26:51.880 above average for reproduction and health and 00:26:51.880 --> 00:26:55.079 welfare, solid for longevity and type. Maybe 00:26:55.079 --> 00:26:58.200 they're 200 to 300 points lower on LPI than the 00:26:58.200 --> 00:27:00.240 rocket fuel, and you use them on the rest of 00:27:00.240 --> 00:27:02.440 the herd. Especially on the family lines that 00:27:02.440 --> 00:27:04.420 tend to struggle with fertility or health events. 00:27:04.619 --> 00:27:06.940 Exactly. You're shoring up the foundation. Let's 00:27:06.940 --> 00:27:09.240 run the math on that workhorse strategy, because 00:27:09.240 --> 00:27:12.940 this is where that $238 ,000 is truly captured 00:27:12.940 --> 00:27:15.559 on the farm. This is where it gets real. If shifting 00:27:15.559 --> 00:27:18.019 your sire mix means your average cow stays an 00:27:18.019 --> 00:27:21.740 extra, say, 0 .3 to 0 .5 lactations, she survives 00:27:21.740 --> 00:27:23.700 her rough second lactation and actually makes 00:27:23.700 --> 00:27:26.240 it to her fourth or fifth, that's massive realized 00:27:26.240 --> 00:27:29.200 income. It is massive. Think about the net margin 00:27:29.200 --> 00:27:32.779 of a mature cow. After feed and overhead, each 00:27:32.779 --> 00:27:35.599 additional lactation is worth roughly $1 ,500 00:27:35.599 --> 00:27:40.220 to $2 ,000 in net margin. So an extra half lactation, 00:27:40.259 --> 00:27:42.839 just because she was more robust and didn't require 00:27:42.839 --> 00:27:44.839 that expensive vet intervention, means what? 00:27:44.960 --> 00:27:48.700 An extra $450 to $1 ,000 in net income per cow? 00:27:48.980 --> 00:27:51.380 Over her lifetime, yes. So if we multiply that 00:27:51.380 --> 00:27:55.460 across a herd turnover, this trade -off... A 00:27:55.460 --> 00:27:57.799 slightly slower climb on the paper OPI for more 00:27:57.799 --> 00:28:00.539 cows that work longer and need less care can 00:28:00.539 --> 00:28:03.279 easily be worth $50 ,000 to $100 ,000 plus per 00:28:03.279 --> 00:28:05.460 year. Just on the income side, simply through 00:28:05.460 --> 00:28:08.039 reducing culling and increasing longevity. And 00:28:08.039 --> 00:28:10.539 that figure more than offsets the slower genetic 00:28:10.539 --> 00:28:12.400 progress on paper, doesn't it? It absolutely 00:28:12.400 --> 00:28:15.119 does. You're maximizing actual realized profit 00:28:15.119 --> 00:28:18.019 by increasing longevity and reducing vet bills, 00:28:18.119 --> 00:28:19.519 which is the whole point of breeding profitable 00:28:19.519 --> 00:28:21.759 cows. You're actively building a deep herd that 00:28:21.759 --> 00:28:24.220 stays. Allowing you to cull only based on low 00:28:24.220 --> 00:28:26.619 production or age, not health failures. That 00:28:26.619 --> 00:28:28.619 is the difference between genetic potential and 00:28:28.619 --> 00:28:31.670 realized profit. It sounds like the secret to 00:28:31.670 --> 00:28:34.930 maximizing the genomic ROI isn't chasing the 00:28:34.930 --> 00:28:37.609 index. It's using the index to create a self 00:28:37.609 --> 00:28:39.809 -managing cow. That's a perfect way to put it. 00:28:39.970 --> 00:28:43.109 So let's look ahead. The daughters of the bulls 00:28:43.109 --> 00:28:45.609 you choose this spring. will be freshening in 00:28:45.609 --> 00:28:48.549 your barn around 2032. Eight years from now? 00:28:48.650 --> 00:28:51.089 Eight years from now. We have to ensure we're 00:28:51.089 --> 00:28:53.369 not breeding high -maintenance, fragile cows 00:28:53.369 --> 00:28:56.170 for a future that will likely demand extreme 00:28:56.170 --> 00:28:59.750 self -sufficiency, robust health, and feed efficiency 00:28:59.750 --> 00:29:03.190 in the face of rising costs and potential climate 00:29:03.190 --> 00:29:05.230 pressure. We have to move beyond just catalog 00:29:05.230 --> 00:29:08.279 ordering. The information is now highly granular 00:29:08.279 --> 00:29:11.619 with the new six subindex LPI, but you have to 00:29:11.619 --> 00:29:14.119 force the conversation with your genetic advisor 00:29:14.119 --> 00:29:17.059 or AI rep. Turn that product pitch into a strategy 00:29:17.059 --> 00:29:19.359 discussion. A strategy discussion tailored to 00:29:19.359 --> 00:29:21.880 your herd's performance data. Okay, for the listener 00:29:21.880 --> 00:29:23.720 who's ready to make this shift from passive selection 00:29:23.720 --> 00:29:26.180 to active skeering, here are the three specific 00:29:26.180 --> 00:29:28.559 actionable questions that every farmer should 00:29:28.559 --> 00:29:31.200 ask their AI supplier this year to cut through 00:29:31.200 --> 00:29:34.430 the catalog noise. Okay, number one. Which bulls 00:29:34.430 --> 00:29:36.509 in your lineup are above breed average for both 00:29:36.509 --> 00:29:38.950 reproduction and health and welfare sub -indexes 00:29:38.950 --> 00:29:41.829 and still strong on LPI and PRO? That question 00:29:41.829 --> 00:29:44.670 is powerful because it instantly forces them 00:29:44.670 --> 00:29:46.630 to look beyond the top two or three names on 00:29:46.630 --> 00:29:49.309 the LPI list. It forces them to find the balanced, 00:29:49.369 --> 00:29:52.309 functional sires, the workhorses. You're demanding 00:29:52.309 --> 00:29:55.529 function alongside performance. Okay, question 00:29:55.529 --> 00:29:58.950 two. Question two. Can you run a report showing 00:29:58.950 --> 00:30:01.930 my herd's average expected inbreeding and carrier 00:30:01.930 --> 00:30:04.970 status for major Holstein haplotypes and genetic 00:30:04.970 --> 00:30:07.190 defects? That gives you an essential baseline 00:30:07.190 --> 00:30:09.490 for both diversity risk and hidden financial 00:30:09.490 --> 00:30:12.190 risk. If your herd's average inbreeding is already 00:30:12.190 --> 00:30:14.910 at 11%, or if you have a high percentage of carriers 00:30:14.910 --> 00:30:17.750 for HH5, you know exactly where you need to focus 00:30:17.750 --> 00:30:20.210 your selection efforts today. No more guesswork. 00:30:20.410 --> 00:30:22.450 No more guesswork. And finally, question three. 00:30:22.880 --> 00:30:25.259 If I wanted to balance my sire lineup between 00:30:25.259 --> 00:30:28.940 a few elite rocket fuel bulls and more workhorse 00:30:28.940 --> 00:30:31.380 functional sires, what would that stratified 00:30:31.380 --> 00:30:34.039 breeding plan look like for my specific herd? 00:30:34.279 --> 00:30:36.740 That turns the whole discussion into a consultative 00:30:36.740 --> 00:30:39.799 planning session. It's not about which bull is 00:30:39.799 --> 00:30:41.960 highest. It's about which combination of bulls 00:30:41.960 --> 00:30:44.380 will maximize your long -term realized profit. 00:30:44.720 --> 00:30:47.500 By protecting functional traits while still driving 00:30:47.500 --> 00:30:49.440 progress where you can afford the fragility. 00:30:49.819 --> 00:30:52.279 That's how we move from passive selection, just 00:30:52.279 --> 00:30:54.720 taking what's on top to active selection, where 00:30:54.720 --> 00:30:57.599 you are using the full genomic dashboard to build 00:30:57.599 --> 00:31:00.859 that four plus lactation, healthy, self -sufficient 00:31:00.859 --> 00:31:03.299 cow you actually want in your barn eight years 00:31:03.299 --> 00:31:07.500 from now. That is how you capture the full $238 00:31:07.500 --> 00:31:10.160 ,000 potential. Right. So a farmer just finished 00:31:10.160 --> 00:31:12.019 milking. It's driving to the feed store right 00:31:12.019 --> 00:31:14.039 now. They need to put this knowledge to work. 00:31:14.140 --> 00:31:16.079 What are the three essential pillars they need 00:31:16.079 --> 00:31:18.339 to remember from today's deep dive? The three 00:31:18.339 --> 00:31:21.220 pillars of capturing the genomic ROI. First, 00:31:21.359 --> 00:31:23.599 you have to protect functional traits. We've 00:31:23.599 --> 00:31:25.700 been passive on fertility and health while we've 00:31:25.700 --> 00:31:27.819 been chasing production. Okay, immediate action 00:31:27.819 --> 00:31:30.299 this week. Review your current semen tank inventory 00:31:30.299 --> 00:31:33.440 and flag any bull that is below breed average 00:31:33.440 --> 00:31:35.799 for the reproduction and health and welfare sub 00:31:35.799 --> 00:31:39.380 -indexes. Use that new LPI data. If they're dragging 00:31:39.380 --> 00:31:42.460 you down on those traits, stop using them. Medium 00:31:42.460 --> 00:31:44.960 -term strategy over the next three to six months. 00:31:45.200 --> 00:31:47.920 Work with your genetic advisor to actively identify 00:31:47.920 --> 00:31:50.660 three or four of those workhorse sires that are 00:31:50.660 --> 00:31:53.859 clearly strong in those two functional areas. 00:31:54.359 --> 00:31:57.079 Use them on your average and below average cow 00:31:57.079 --> 00:31:59.799 families. This is how you shore up the foundation 00:31:59.799 --> 00:32:01.980 of the herd. And the long -term positioning, 00:32:02.220 --> 00:32:04.920 looking one to two years out. Shift your breeding 00:32:04.920 --> 00:32:07.759 goal entirely toward those four -plus lactation, 00:32:07.759 --> 00:32:10.460 healthy, self -sufficient cows. Start measuring 00:32:10.460 --> 00:32:13.480 success not just by milk output, but by tracking 00:32:13.480 --> 00:32:16.380 actual culling age and minimizing mastitis and 00:32:16.380 --> 00:32:18.579 health events, because those are your cost centers. 00:32:19.599 --> 00:32:22.200 Manage diversity and genetic risk. High index 00:32:22.200 --> 00:32:24.799 balls increase inbreeding and hide lethal defects, 00:32:25.019 --> 00:32:27.299 and we just can't afford to be naive about that 00:32:27.299 --> 00:32:29.559 anymore. Immediate action for that. If you haven't 00:32:29.559 --> 00:32:31.819 already, turn on the haplotype and recessive 00:32:31.819 --> 00:32:35.019 filters in your mating program today. Block the 00:32:35.019 --> 00:32:39.119 known carrier -by -carrier matings HH1 -6, CDHCD. 00:32:39.359 --> 00:32:42.369 That's Risk Management 101. It's the easiest 00:32:42.369 --> 00:32:44.329 money you'll save all year. And medium term. 00:32:45.009 --> 00:32:47.829 Genomically test all replacement heifers. This 00:32:47.829 --> 00:32:50.329 gives you accurate carrier status and critically 00:32:50.329 --> 00:32:52.690 actual inbreeding data on the next generation. 00:32:53.029 --> 00:32:55.670 It allows your mating program to be precise rather 00:32:55.670 --> 00:32:58.089 than relying on pedigree estimates that might 00:32:58.089 --> 00:33:01.109 underestimate relatedness. Long term. Set a hard, 00:33:01.170 --> 00:33:03.569 herd -wide, expected inbreeding ceiling target 00:33:03.569 --> 00:33:06.890 for all individual matings. Target under 8%. 00:33:06.890 --> 00:33:09.690 That is the level that maintains long -term robustness 00:33:09.690 --> 00:33:12.230 and adaptability in the face of intense selection 00:33:12.230 --> 00:33:14.230 pressure. Okay, and the final pillar, number 00:33:14.230 --> 00:33:18.549 three. Balance genetics for ROI. We need to capture 00:33:18.549 --> 00:33:21.390 the speed genomics offers, but mitigate the fragility 00:33:21.390 --> 00:33:23.650 it can introduce through stratification. Immediate 00:33:23.650 --> 00:33:26.640 action. Make a small initial semen order, mixing 00:33:26.640 --> 00:33:29.240 one or two of those ultra -elite rocket fuel 00:33:29.240 --> 00:33:32.319 sires with at least one or two of those workhorse 00:33:32.319 --> 00:33:34.960 functional sires that excel on health and reproduction. 00:33:35.420 --> 00:33:38.160 Get that diversification started in your tank 00:33:38.160 --> 00:33:43.440 right now. Dive deep into the new LPI subindexes 00:33:43.440 --> 00:33:45.839 and assign your own custom weightings based on 00:33:45.839 --> 00:33:48.940 your top three herd problems. If lameness is 00:33:48.940 --> 00:33:51.400 killing you, Weight, longevity, and type higher 00:33:51.400 --> 00:33:53.859 than the standard formula does because that is 00:33:53.859 --> 00:33:56.319 your unique bottleneck. And the long -term goal? 00:33:56.559 --> 00:33:59.440 Capture that $50 ,000 to $100 ,000 plus per year 00:33:59.440 --> 00:34:02.680 ROI by building that deep, healthy herd that 00:34:02.680 --> 00:34:05.279 stays longer. If they stay, you only call based 00:34:05.279 --> 00:34:07.680 on economics, not health failure. That's the 00:34:07.680 --> 00:34:10.559 full profit potential of genomic selection realized. 00:34:11.039 --> 00:34:12.940 This has been another deep dive from the Bullvine 00:34:12.940 --> 00:34:15.840 Podcast. Genomics gave us the speed, but our 00:34:15.840 --> 00:34:17.599 breeding decisions determine whether we actually 00:34:17.599 --> 00:34:19.969 capture that profit. The bottom line is this. 00:34:20.050 --> 00:34:22.269 Without genomics, you couldn't reliably achieve 00:34:22.269 --> 00:34:24.269 this kind of return. The tools are there now 00:34:24.269 --> 00:34:26.289 in the form of these new indexes and the haplotype 00:34:26.289 --> 00:34:28.409 data. Make sure you're steering your enterprise 00:34:28.409 --> 00:34:31.949 in the right direction for 2032. Build a resilient 00:34:31.949 --> 00:34:35.449 herd, not just chase the catalog leader for 2026. 00:34:35.789 --> 00:34:37.510 For more straight -talking industry analysis, 00:34:37.769 --> 00:34:42.010 head to www .thebullvine .com. Subscribe wherever 00:34:42.010 --> 00:34:44.750 you get your podcasts. We're out with new episodes 00:34:44.750 --> 00:34:46.909 every day, and upcoming topics will be around 00:34:46.909 --> 00:34:49.030 the economics of carbon markets and the viability 00:34:49.030 --> 00:34:51.409 of high -tech milking equipment. See you next 00:34:51.409 --> 00:34:51.610 time.