In a demonstration of its commitment to nurturing talent, Alltech is pleased to announce new leadership in the office of the president, the culture and talent team, and the marketing and communications team. Orla McAleer joins the culture and talent team as chief culture officer, while Susanna Elliott will lead the global marketing and communications team as chief marketing and communications officer, and Brian Lawless will lead the office of the president as chief of staff.

"As we have reviewed our strategy and growing capabilities, we are focused on the recruitment, development and well-being of our greatest asset — our people,” said Dr. Mark Lyons, president and CEO of Alltech. “Orla, Susanna and Brian bring leadership and experience that will enable us to capitalize on our opportunities and leverage the strengths of our global team.”

As the chief culture officer at Alltech, McAleer will work to strengthen the company’s emphasis on its people and purpose. She has worked in the business for more than 20 years and has traveled extensively, building teams and close relationships with colleagues globally. Prior to this new role, she was the chief marketing officer at Alltech, responsible for overseeing the company’s global marketing efforts across its more than 120 markets and building a winning team and brand that has matched the growth ambitions of the company. McAleer received a master's degree in business, leadership and management practice from the University College Dublin Michael Smurfit Graduate Business School. She also earned a bachelor’s degree in business studies from Trinity College Dublin in Ireland and holds a diploma in public relations.

As chief marketing and communications officer, Elliott will lead a 130-person global team to advance the company’s purpose of Working Together for a Planet of Plenty™. Through data, insights and relevant content creation, Alltech’s marketing and communication team provides thought leadership, rich resources and inspiration relevant to agriculture’s challenges and opportunities. Most recently, Elliott served as Alltech’s chief of staff and director of communications. In these roles, she worked closely with Dr. Mark Lyons and the executive team to support the business through the global challenges of 2020-2023. The position afforded her unique visibility of the entire business, a perspective that now informs her leadership of Alltech’s global marketing and communications strategy. Elliott has held various communications roles over her 15 years at Alltech and is involved in supporting the agriculture industry as an American Feed Industry Association (AFIA) board member and as vice chair of the CLEAR Center advisory council at the University of California, Davis. She received a bachelor’s degree in public relations from Asbury University.

Lawless is the chief of staff at Alltech, leading the office of the president. As chief of staff, he will support Dr. Mark Lyons and the executive team to drive global strategy and maximize operational effectiveness. Lawless brings tremendous knowledge from the ag-tech industry into this role from his involvement in the Pearse Lyons Accelerator in Dublin, Ireland. Currently, he is supporting the Bluegrass Ag Tech Development Corp., which aims to cultivate an agri-food innovation ecosystem in Kentucky. Over his ten years in the business, he has served as deputy chief of staff, species marketing manager, brand manager for North America and, at the beginning of his Alltech career, worked closely with Dr. Mark Lyons on key growth projects. Lawless holds bachelor’s degrees in economics and Spanish from DePauw University and a master’s degree in agriculture from Western Kentucky University.

For more information about Alltech, visit alltech.com.

Prototheca mastitis, caused by a colorless algae called Prototheca, has become an increasing challenge to dairy cattle and farmers. Prototheca can be found throughout the farm environment, entering the teat end in multiple ways, and it can be transmitted from cow to cow through direct contact or poor sanitary protocols. When Prototheca does take hold, it manifests mostly as subclinical cases of mastitis.

Prototheca mastitis can have a significant economic impact on dairy farms, having both direct and indirect costs. With no effective Prototheca mastitis treatments available, preventing it is of utmost importance in mitigating its economic impact on dairy operations.

In this blog, we will delve into the key strategies for identifying and controlling Prototheca mastitis, including diagnostic techniques, prevention measures, and best practices for managing affected animals within the dairy herd.

What does an infection look like?

While most cases are subclinical, subtle changes in milk quality and persistently high somatic cell counts (SCC) can indicate the presence of Prototheca on your operation. Slight changes in milk may be noticed during your pre-milk protocol. Discoloration, watery consistency, flakes or garget would be typical for this pathogen. Chronically infected cows will continue to decrease milk production and increase SCC, sometimes upward of 1 million SCC.

How are cows coming in contact with Prototheca on my farm?

Prototheca are found in wet areas contaminated with decaying plant matter. Common areas include lagoons, manure storage areas, water troughs and runoff areas. These algae can also be found inside the parlor and holding pens. At a certain point, the prevalence of Prototheca in the environment may get so high that Prototheca mastitis can become contagious, passed from cow to cow through direct contact and also through contaminated equipment, infected teat dips, and other fomites.

How do I know for sure that my cows are infected with Prototheca mastitis?

Isolating the potentially infected quarter is the best way to determine which quarter to sample and send for laboratory diagnosis. This can be done with the California Mastitis Test (CMT) or a desktop SCC device. Proper milk sampling techniques ensure accurate samples for identifying mastitis pathogens. DHIA or other regular periodic milk sampling can also be useful in diagnosing Prototheca mastitis. After the infected cow or quarter is identified, milk culturing is the gold standard for diagnosing Prototheca mastitis.

How can I manage currently infected cows?

Because there is no effective treatment for this type of mastitis, the best option is to cull the infected cows immediately. When culling is not an option, infected cows should be isolated into their own string and milked last. Realize that these cows are still a danger to further contaminate the environment when they leave the parlor. They will also continue to decrease in milk production and increase the overall SCC of the herd.

What can I do to prevent infections?

It would be unrealistic to expect to completely eliminate the risk of cows coming into contact with Prototheca, but with proper on-farm protocols and management, we can reduce the risk. Below are three steps that can be taken today to establish your current risk and be proactive in battling the problem.

• Test milk from the hospital pen and fresh cows — Knowing what mastitis-causing organisms you have is key to knowing how to manage the situation. Starting your testing with the fresh cows and the hospital pen will provide valuable information about the presence of Prototheca and other mastitis pathogens. It also will help to evaluate the sanitation protocols that we are initiating, to see their effectiveness.
• Routinely test cows and make culling decisions — Regular periodic testing allows for informed decisions in real time, helping to prevent further spread. Remember, the best strategy for contagious or untreatable mastitis is to test and cull. When this is not possible, isolating Prototheca-positive cows into a specific pen and allowing for them to be milked last and managed separately from the rest of the herd is a secondary option.
• Establish and follow milk quality protocols — Training milkers on established milk quality protocols helps reduce the introduction of pathogens during the milking process and reduces the potential spread of pathogens from one cow to the next.
  
  Steps to reduce the introduction of pathogens

1. Pre-dip: Use a bactericidal pre-dip to kill any bacteria that may be present on the teats before milking.
2. Strip: Strip each teat to check for abnormalities in the milk, including signs of Prototheca mastitis such as watery milk, discoloration, flakes or garget.
3. Wipe: Use a clean towel to wipe each teat thoroughly. Overall cleanliness of the teat and teat end is of utmost importance when dealing with environmental pathogens.
4. Post-dip: Apply a quality post-dip to each teat immediately after milking is complete to protect the teat from contamination.

If you are interested in more information on designing proper milking procedures, please visit the Alltech On-Farm Support team’s YouTube channel to listen as Jorge Delgado explains the importance of each step in the milking routine.

Prototheca mastitis poses a significant challenge for dairy farmers due to its chronic nature and lack of effective treatments. Identifying and controlling this form of mastitis is crucial to minimize economic losses and maintain the overall health and productivity of the dairy herd.

For additional resources and on-farm support, please reach out to the Alltech On-Farm Support team here.

Following the spring European events in Budapest and Dublin, the Alltech ONE World Tour will travel to Calgary, Alberta, Canada on July 3 – 4, 2023. Alltech ONE Calgary will explore collaborative solutions to the greatest challenges facing the agri-food industry as it relates to the Canadian marketplace, uniting changemakers and thought leaders throughout the ag value chain to explore unique and innovative opportunities in agriculture, business, health and nutrition.

The Alltech ONE Conference has been held in Lexington, Kentucky, home of Alltech’s global headquarters, for the past 38 years. In 2023, the global leader in agriculture is bringing the conference to its partners, customers, suppliers and friends across the globe, providing the opportunity for more people than ever to experience the power of ONE.

“As our customers and partners continue to face many challenges and uncertainties, we determined that 2023 would be dedicated to meeting them in their market,” said Dr. Mark Lyons, president and CEO. “This special edition of the ONE will endeavour to deliver global expertise to locally relevant issues. In the midst of economic and political uncertainties that fuel regionalization, this ONE reflects the responsibility we have as a global company to be a connector of people and ideas, ever advancing our purpose of Working Together for a Planet of Plenty.”

Alltech ONE Calgary will feature global and Canadian experts discussing agriculture, animal nutrition and business, including keynote presentations from Dr. Mark Lyons and renowned motivational speaker, Chris Koch.

The Alltech ONE World Tour will continue with stops in the U.S., Asia, South America and the Middle East.

For more information and to register for Alltech ONE Calgary, visit one.alltech.com/Calgary.

The following blog is a summary of the Ag Future podcast episode with Muzaffar Yunusov hosted by Tom Martin. Click below to hear the full audio or listen to the episode on Apple Podcasts, Spotify or Google Podcasts.

To explore strategies for success in 2023 for the dairy industry, we invited Muzaffar Yunusov, lead of key account management at the IFCN Dairy Research Network, to speak at Alltech ONE Budapest.

Globally, almost 970 million tons of milk was produced in 2022, 55% of it processed for further dairy commodity production. The other 45% is “informal market,” which means consumed by households or sold to traders. During the past 10 years, milk production has grown 2% annually, Yunusov said.

Milk consumption is also on the rise. The average person consumes 123 kilograms of milk per year. In richer economies, the average is 300 kilograms, he said.

From the economics of dairy farming to the labeling dilemma of alternatives to cow milk, here are six trends dairy producers should keep an eye on right now:

1. The impact of macroeconomic developments on the industry

In the aftermath of the COVID-19 pandemic, countries with slowed GDP growth experienced high inflation rates, leading to a decline in global purchasing power that also affected the dairy sector. 

These fluctuating macroeconomic trends have had implications for farmgate milk prices, which are weighted averages of cheese and butter, skim milk powder, whole milk powder, and whey. A price increase of 30% to 60% was observed during 2021 and 2022, creating a mixed outlook for the industry.

Additionally, the Russian invasion of Ukraine emphasized the necessity for strategic adjustments in macroeconomic policies, especially in a globally integrated industry like dairy. 

2. The influence of inflation on milk pricing

From 2017 to 2020, the average farmgate milk price stood at around US$40 for 100 kg of milk. However, as demand surged in 2020, the milk price underwent a significant surge as well, reaching an all-time high in mid-2022. Consumers found it challenging to sustain their purchasing power, and this ultimately led to a decline in milk prices.

“If you are trading a lot in the global market, it means that your national farmgate milk prices are also declining quicker if you are not in this global trade,” Yunusov commented on the role of global trade in shaping national farmgate milk prices. “You may have this downgrading effect after eight to nine months.” 

These intricate dynamics highlight the complex relationship between inflation, demand and affordability, all of which hold substantial implications for the dairy industry and its stakeholders.

3. High input costs and their effect on investments

Yunusov highlighted the shock situation triggered by factors such as increased energy and fertilizer costs, along with supply chain disruptions, which have led to higher farm input expenses. This escalation in costs, coupled with a temporary reduction in milk production in several net exporting countries, has imposed significant pressure on farmers. 

It is important to reassess margin calculations, considering not only feed costs but also energy and fertilizer expenses. Results of such assessments have revealed that farmers' margins have been strained due to these elevated input costs. While many farms were able to generate satisfactory profits through efficiency and good management, smaller-scale farms with lower efficiency faced the risk of profit losses. 

4. Food insecurity and unmet demand

According to Yunusov:

• One billion people are living in net exporting countries of dairy.
• Three billion people are living in net importing areas of dairy.
• Four billion people cannot afford to buy dairy.

For example, in Western Europe, people consume one liter of milk per day on average, whereas in China that number is less than one glass of milk per day.

When considering the future of net exporting countries, we must consider the unintended consequences faced by those unable to afford dairy products. Addressing the decline in affordability, and effectively tackling food insecurity, are emerging as critical tasks within the dairy industry.

IFCN predicts that by 2030, over 14% more milk will be produced and consumed, Yunusov said — reaching about 1.1 billion tons. Milk production will grow mainly outside the current top exporting countries, he said, and unsatisfied demand is expected to increase.

5. Enhancing efficiency through strategic actions

A key efficiency indicator highlighted by Yunusov was milk yield per cow, and he emphasized the need to adapt farming systems to suit the specific requirements of different countries and regions. 

In low-income countries with small-scale farming operations and a limited number of cows, improving efficiency in feeding becomes crucial not only for providing nutrition to families but also for generating an income source.

Conversely, high-income countries with larger economies of scale need larger herd sizes and advanced farming systems to optimize efficiency.

“Optimization and robotization are extremely important, because at the end, once you have this high-income situation in the neighborhood, you definitely automatically will have an issue of this labor shortage,” Yunusov said.

6. Labeling dilemma: Nut- and plant-based milks in the dairy industry

Yunusov contended that non-dairy liquids, like soy milk, should not be bestowed with the term “milk,” as they do not originate from mammals. Notably, legislation in Europe has already implemented restrictions on the usage of terms such as “soya milk,” mandating designations such as “soya drink” instead. 

Yunusov noted the significance of offering consumers, particularly the younger generation, an accurate perspective by educating them about the nutritional merits of dairy products.

“Dairy alternatives are there, but we should not forget that the dairy business has a tremendous opportunity to grow,” he said. “It's important to review all of your strategies until 2030, because we are in a fast-changing world. You need to learn fast; you need to adapt fast.”

Related ONE content

Alltech ONE Budapest explored the strategies for remaining resilient amid the significant challenges facing our industry. It offered captivating insights from industry experts on topics of production efficiency, risk management, the power of data, and partnerships — all through the lens of sustainability.

Explore our other content, including photos and videos, from Alltech ONE Budapest at one.alltech.com/Budapest and the links below.

Opening keynote: Turning agricultural challenges into global opportunities

Blog: Harnessing data for sustainable profitability in agriculture

Podcast: Sustainability in the poultry business

[BUDAPEST, Hungary] – Central Europe's agriculture producers will play a major role in addressing climate and food-supply challenges around the world. The region's agri-food leaders discussed collaborative solutions and strategies for success today in Budapest, Hungary, at the first stop of the Alltech ONE World Tour (ONE), launching a series of international events that bring the ideas and inspiration of the annual Alltech ONE Conference to the world. Discussions explored collaborative solutions to the greatest challenges facing the agri-food industry as it confronts the “4 Cs” — the major forces of climate, conflict, consumer trends and rising costs.

The ONE Budapest keynote presentation from Dr. Mark Lyons, president and CEO of Alltech, welcomed delegates to Budapest and challenged them to think about what comes next for the agri-food industry. 

“In times of uncertainty, it is crucial for businesses like ours to adapt and innovate,” Lyons said. “The Alltech ONE Conference is no exception. While our annual symposium has had its roots in Kentucky, USA, for four decades, we felt it was important to adapt and engage with our customers on their home ground. Thus, it is only fitting that we launch the Alltech ONE World Tour in Budapest, Hungary, which is at the center of both change and opportunity.”

ONE Budapest attendees heard from industry experts on various topics, including insights from the dairy industry, data for profitable and sustainable agriculture, and mycotoxin management, and they were also able to attend focus track sessions on dairy, pigs and poultry. Robert Walker, European growth officer at Alltech, moderated a panel discussion featuring the species focus track speakers, who discussed how to remain profitable amid uncertainty and how the learnings from the day’s sessions can be applied to individual operations.

“By sharing data and insights, we empower advisors to solve agri-food-system challenges and drive the transfer of value, from the consumer to the processor to the farmer,” said Walker.

The final session of the day featured a discussion between Tara McCarthy, global vice president for ESG at Alltech, and Lyons on the path forward toward a sustainable future.

“As an industry, we have the responsibility to frame the role of agri-food in the context of the four Cs of climate, conflict, cost and consumer,” McCarthy said. “We will need to use our insights (from data), our skills and our scale to achieve impact, but most importantly, we will need to adapt and partner across the value chain.”

“The theme of our ONE Budapest stop — ‘Thriving Through Turbulence: Rising to the Challenges of Climate, Conflict, Consumers and Costs in Agriculture’ — perfectly encapsulates the unique hurdles we encounter in this region,” Lyons said. “With increasing geopolitical tensions and rising input costs, producers will need to make well-informed decisions to enhance their efficiency and adapt to the modern challenges faced by many in this area.”

The Alltech ONE World Tour will continue with stops in Dublin, Ireland, on June 19–20 and Calgary, Canada, on July 3–4, then on to the U.S., Asia, South America and the Middle East. For more information and to register for an Alltech ONE World Tour stop, visit one.alltech.com.

-Ends-

Download photos from Alltech ONE Budapest: https://creative.alltech.com/share/928F2EF2-13C5-4658-9FE6874BE0837D80/

[LEXINGTON, Ky.] – As a global leader in animal nutrition, Alltech is proud to partner with companies that share its commitment to Working Together for a Planet of Plenty™. Today, Alltech announced it has acquired a majority interest in Agolin. Founded in 2006 in Switzerland, Agolin has developed and produced plant-based nutrition solutions that improve herd performance, profitability and sustainability, according to a 2020 meta-analysis* in the journal Animals.

Agolin’s high-quality essential oil blends are scientifically proven to optimize feed intake and performance, including improved milk and meat production*. Furthermore, Agolin^® Ruminant was the first feed additive certified by The Carbon Trust for methane reduction in ruminants (2018). Today, organizations such as Verra and Gold Standard are including it in their major international climate protection projects.

“Agolin’s essential oil blends are a complement to Alltech’s proven nutritional technologies, such as Yea-Sacc^® and Optigen^®,” said Dr. Mark Lyons, Alltech’s president and CEO. “Governments, consumer brands and retailers are making important commitments to reduce their environmental impact. These commitments rely upon farmers and ranchers, and we are dedicated to supporting them with the best available nutritional technologies to achieve more milk and meat while reducing their environmental footprint.”

The alliance between Alltech and Agolin will empower farmers and ranchers to reach their sustainability goals while also supporting the performance and profitability of the cattle in their herds and supply chains. The synergistic use of Alltech and Agolin nutritional technologies leads to benefits such as improved animal welfare, greater feed efficiency and conversion, enhanced milk and meat production, increased profitability, and a reduced environmental footprint, including a boost in nitrogen efficiency. The partners will also be exploring opportunities to develop new technologies that bring together the best of Alltech’s proven nutrition and Agolin’s essential oil blends. Agolin has a presence in Europe, Asia and North America. Alltech’s majority interest in the company will expand the availability of Agolin to additional markets.

"We at Agolin are delighted with this strategic alliance to grow synergistically through the added technical expertise and global reach of Alltech,” said Kurt Schaller, managing director of Agolin SA. “This represents a new era for our business, and we look forward to breaking new ground in our industry.”

Agolin focuses on research and development to produce and market innovative feed additives based on plant active ingredients, which are effective and easy to use. Its essential oil blends are backed by a strong quality management system (FAMI-QS), which ensures safety and guarantees traceability.

For more information, visit alltech.com/agolin and agolin.com.

Alltech is pleased to announce new leadership roles within the Alltech feed division. Scot Harold will assume commercial leadership as executive vice president, Feed & Premix, and Brian Gier joins the company as vice president of sales for Hubbard Feeds.

"As we position the business for future growth, we continue to evolve and work together across all parts of our business to best serve our customers,” said Mike Castle, chief operating officer at Alltech. “Scot and Brian will bring leadership and experience that will enable us to capitalize on opportunities within our feed business to continue to develop species alignment and leverage the strengths of our team.”

Harold joined Alltech in 2020 as the director of sales for Ridley Feed Ingredients, part of the Alltech feed division. He will work with the leadership team to develop and implement strategy for growth of the feed business while strengthening alignment across the feed, premix and specialty ingredients teams. Prior to joining Alltech, Harold served as Cargill Animal Nutrition’s national sales leader for both the Dealer & Multi-Store Ag Retailer segments.

Alltech welcomes Gier to the team from Purina Mills, where he served as vice president of sales. He was responsible for overseeing the company’s commercial livestock strategy, as well as the lifestyle portfolio, and was instrumental in the success of the coop segment, including several joint ventures. Gier’s wealth of experience in the feed industry will contribute to enhanced customer success. 

For more information about Alltech, visit alltech.com.

Dates and locations have been announced for the spring European leg of the Alltech ONE World Tour, a series of exciting international events that bring the ideas and inspiration of Alltech’s annual ONE Conference to the world. The first stops are in Budapest, Hungary, on May 22-23 and Dublin, Ireland, on June 19-20.

The Alltech ONE Conference has been held in Lexington, Kentucky, home of Alltech’s global headquarters, for the past 38 years. In 2023, the global leader in agriculture is bringing the conference to its partners, customers, suppliers and friends across the globe, providing the opportunity for more people than ever to experience the power of ONE.

The Alltech ONE World Tour will explore collaborative solutions to the greatest challenges facing the agri-food industry, uniting changemakers and thought leaders to examine regional and local market trends in agriculture, business, health and nutrition.

“As our customers and partners continue to face many challenges and uncertainties, we determined that 2023 would be dedicated to meeting them in their market,” said Dr. Mark Lyons, president and CEO. “This special edition of the ONE will endeavor to deliver global expertise to locally relevant issues. In the midst of economic and political uncertainties that fuel regionalization, this ONE reflects the responsibility we have as a global company to be a connector of people and ideas, ever advancing our purpose of Working Together for a Planet of Plenty.”

The Alltech ONE World Tour will continue with stops in Canada, the U.S., Asia, South America and the Middle East.

For more information and to register for an Alltech ONE World Tour stop, visit one.alltech.com.

[BANGKOK, Thailand] – Alltech, a global leader in animal nutrition, and the Dairy Farming Promotion Organization of Thailand (DPO) have agreed to collaborate to create a model for nutrition innovation and sustainable dairy farming. A signing ceremony for a memorandum of understanding was held March 9 at VIV Asia with Dr. Mark Lyons, president and CEO of Alltech, Jonathan Forrest Wilson, president of Alltech Asia Pacific, and Peera Chairut, assistant director of DPO.

With a presence in Thailand for over 25 years, Alltech has established deep connections within the industry, utilizing global resources and experience to deliver localized solutions to farmers and producers. The collaboration will leverage global expertise and technologies to sustainably expand and develop dairy and beef cattle production in Thailand.

“It is a great pleasure to deepen our partnership with the Dairy Farming Promotion Organization of Thailand (DPO) in the spirit of Alltech’s purpose of Working Together for a Planet of Plenty™,” said Dr. Lyons. “Working with DPO, we can apply our global resources and insights to the Thai market, so the future of dairy farming will deliver high-quality nutrition for the people of Thailand while enabling the country’s farming sector and land to thrive.”

The collaboration aims to enhance production efficiency, milk quality, animal welfare and economic benefits in Thailand’s dairy industry. Alltech and DPO will work together to assist farmers in developing appropriate knowledge and utilizing relevant technologies, services and management practices for sustainable dairy and beef cattle production, which will improve the performance of dairy cows and the quality and quantity of milk they produce.

“Today’s global consumer trends are increasingly moving toward sustainability. This is the first step toward achieving our shared vision. Under this memorandum of understanding (MOU), DPO and Alltech have agreed to work together to develop knowledge on dairy and beef cattle production by focusing on nutrition and management, as well as support the dairy farming business in terms of nutritional and management strategies to solve dairy production problems and improve productivity in Thailand,” Chairut said.

The MOU outlines the scope of collaboration, including the development of management and nutrition strategies to solve challenges and improve production efficiency, the establishment of guidelines and procedures to meet project objectives, and the management of ruminant nutrition to solve production issues and promote better efficiency and quality of products.

Alltech is committed to providing smarter, more sustainable solutions to farmers around the world, improving plant and animal health and providing better nutrition for human beings. The company’s purpose of Working Together for a Planet of Plenty™ invites everyone to work toward achieving sustainable food production through science, innovation and cooperation, unleashing agriculture’s potential to positively impact the future of our planet.

The Dairy Farming Promotion Organization of Thailand is a Thai state enterprise under the oversight of the Ministry of Agriculture and Cooperatives. It is best known as the manufacturer of the Thai-Denmark brand of dairy products and is committed to promoting dairy farming and creating knowledge of dairy industry affairs in Thailand.

For more information about the two organizations, visit Alltech.com and DPO.

From left, Sermsak Mungdee, chief of dairy research and development for the Dairy Farming Promotion Organization (DPO) of Thailand; Peera Chairut, assistant director of DPO; Dr. Mark Lyons, president and CEO of Alltech; and Jonathan Forrest Wilson, president of Alltech Asia Pacific, recently signed an agreement to collaborate and create a model for innovation in nutrition and sustainable dairy farming in Thailand. 

The beef industry is constantly evolving, with new technologies and practices emerging to help producers improve their efficiency and profitability. Mike De Groot, a founding partner and director of TD Beef, joins the Ag Future podcast to discuss the growing trend of dairy composites and how TD Beef is bridging the gap between the dairy and beef industries through its beef-on-dairy supply chain, which tracks cattle and data from conception to consumption.

The following is an edited transcript of the Ag Future podcast episode with Mike De Groot hosted by Tom Martin. Click below to hear the full audio or listen to the episode on Apple Podcasts, Spotify or Google Podcasts.

Tom:            Welcome to Ag Future, presented by Alltech. Join us from the 2022 Alltech ONE Conference as we explore our opportunities within agri-food, business and beyond.

                     I'm Tom Martin with the Alltech Ag Future podcast series, and with us is Mike De Groot, founding partner and director of TD Beef, an ESG-friendly cattle procurement company positioned to bridge the gap between the dairy and beef industries. TD operates a beef-on-dairy supply chain that tracks cattle and data from conception to consumption. De Groot and his partners, Jake and Jason Tuls, raise cattle on the Tuls family’s ranches in Eastern New Mexico and West Texas. Thanks for joining us, Mike.

Mike:            Thanks for having me.

Tom:            Mike, you have a very collaborative philosophy about working to make sure that everybody in the supply chain profits. Tell us about that supply chain. Who is in it?

Mike:            Thanks, Tom. In its most basic form, what TD Beef is trying to do is make better beef faster. Everything starts with the selection of the genetics, and then, at conception — but that doesn't necessarily mean that they just move down the supply chain and become great beef at the end. There are a lot of partners, and every one of those partners has a responsibility for the genetic expression of the semen that we're using. For example, it starts at conception with the dairymen. That calf, when it's born, will move through a calf ranch, which is where my partners are and (where) all of the TD cattle are housed. From there, they go to a feedlot (and) from the feedlot to the packer and then, eventually, to your plate.

Tom:            In your promotional materials, you tell us that your company creates black cattle that offer green solutions. Tell us what that means.

Mike:            Yeah. That's fun, and that's a developing space right now. I'm not a scientist, and that's going to be very clear, but I love systems. I'm a dairy kid, and so, systems are what make us (in the dairy industry) function at high levels of efficiency. What I know is (that) the carbon created follows the mother and the milk. Therefore, the calf that comes out, the black calf that comes out, is carbon-neutral. In some cases, a story can be told that it might be carbon-negative if it's produced off of dairies that are capturing methane in the form of methane digesters.

                     We know, from that level — we’re obviously reducing our carbon footprint, and there are some offsets there that people can be participating in. However, something more specific is how quickly our cattle convert and perform because of the genetics that we're using. For example, our cattle get to 350 pounds 18 days earlier than their generic counterparts. Now, a Holstein steer could not even get to 300 pounds in the same time that our TD beef are getting to 350. So, you can imagine — what we're looking at there, from a data standpoint, is how many days on feed less are we (achieving) by feeding TD beef as compared to feeding Holstein steers.

Tom:            Mike, I watched a promotional video that featured a client talking about the hardiness of TD black bulls. What distinguishes TD bulls?

Mike:            When beef-on-dairy originally started, the only criteria was that they needed to have a black hide. That was the only selection criteria. Now, a black hide is not necessarily conducive to performance or value down the supply chain. And because we have the ability to select genetics with specific traits that favor everyone throughout the supply chain, it's easy for us to create cattle that are uniform. To that gentleman's point (in the promotional video), all of our bulls meet certain requirements that favor a feedlot and a packer. Therefore, when the babies are produced and they're on the ground, they're noticeably different than their generic counterparts.

Tom:            Dairy composites are a growing market in the beef industry. What are dairy composites, and how did this concept get its start? How did it find its way into the beef world?

Mike:            In 2015, sorted semen made its way to the market in a major way, and dairymen adopted that technology. What it allowed them to do was create as many heifers as they needed from the animals that they desire to create them from. So, there was this strategic approach in their breeding program: create heifers from the superior animals that could help you, and then you're still left with other animals that needed to get pregnant. But it made no sense to use conventional semen because, if it were female, then, of course, it would go into the lactating herd. If it were male, then a Holstein steer is not as ideal as a beef steer. In fact, there's almost a $130–150 difference between the two. So, a dairyman, he doesn't need a calculator to understand (that he can) just switch the type of semen and you're going to make more money.

Tom:            So, was this the advent of beef-on-dairy?

Mike:            Certainly so. It was just very simple at this point. There wasn't a lot of strategy because the main driver of revenue for a dairy is always going to be milk, but a lot of people weren't necessarily focusing on anything other than just the black hide.

Tom:            Did that break down a barrier that had been in existence for as long as we can remember between beef and dairy?

Mike:            Yes, it was an incredible paradigm shift in the market.

Tom:            How does beef-on-dairy production affect the beef supply chain?

Mike:            That's such a great question. I'm really, actually, glad you asked that. It does not affect the beef supply chain. The reason for that is we're not creating any more beef animals than we were before; they're just a different color on the hide. For example, Holstein steers have always made their way into the feedlots and through the packer. They were great animals because they were predictable, but they were inferior to their native counterparts. However, the dairyman now can create the same animal but (can make it) more marketable and more ESG-friendly if they choose, for example, TD beef.

Tom:            These last few years have been unstable, even volatile. The markets have been — and there's plenty of uncertainty about what's going to happen in the future. If you're in the dairy business, does it make sense to have a Plan B, like breeding a portion of your herd to beef sires, as a way to create that second revenue stream?

Mike:            Well, multiple streams of revenue is always a good idea.

Tom:            It's always a good thing.

Mike:            I think dairymen are strategically positioned with the most sustainable unit on the planet today, and I'll flush that out for you. A cow can produce 25,000 pounds of milk, a 600-pound carcass, and now we're capturing their methane for renewable gases that can fly jets across the pond. These are just from cows that people started out just to produce milk (with).

Tom:            That's working sustainability, isn't it?

Mike:            Absolutely.

Tom:            What beef bull breeds are most in demand for breeding to a dairy animal, and what makes those breeds most desirable?

Mike:            Well, it's still a relatively new space, so I would say it's undetermined. But the data would start to suggest that the Angus/Holstein cross is the most ideal cross. But we use Limousin, SimAngus and Charolais as well. All of those do have different values, but right now, we're still trying to collect all of the data to be able to articulate that accurately and to figure out which is the best.

Tom:            What considerations — such as a genetic plant, for example — should be developed before we launch into a beef-on-dairy line?

Mike:            Inventory. You need to know how many animals you need. Again, going back to the main driver, it's milk production. A dairyman really needs to keep his eye on the ball, but that does not mean that there's not a tremendous opportunity for him in the beef space. The priority is to identify which heifers and how many you want to create, and then, the excess animals that will not be bred to sorted semen can be bred to TD beef or any desired beef breed.

Tom:            Are feedlots and packers expecting more data on genetics?

Mike:            They are, and that's exactly the problem that TD Beef solved. In 2015, because the criterion was only a black hide, all of these animals made their way through the supply chain and into the packer. I talked to a lot of feedlots and packers that said, "We would prefer the Holsteins rather than what you're sending us." I said, "Wait. We're solving this problem." They said, "Well, what are you doing?" I said, "We're going to start demanding that they use certain semen with a genetic profile that suits you. We're going to reward the dairymen by paying them a premium for that product. If you give us enough time, we will start to deliver and demonstrate that we could change what you've had."

                     Now, it wasn't entirely easy to walk that back — that sour taste in their mouths. But we are at a point now where feedlots and packers who originally were not interested in these cattle are incredibly interested. But there are some market dynamics that we have to consider as well. So, the fundamental right now is that there's a deteriorating native cattle supply, drought, feed costs (and) access to feed, but the dairymen create these types of animals every single day, and they offer us the ability to age, source and capture any other data that we want. So, it's very attractive to feedlots and packers now, but it wasn't originally.

Tom:            That's really interesting. Some in the industry are calling for more transparency and more consistency, which would flow with what you were just talking about. Do you agree with the need? If so, what solutions does TD Beef bring to that problem?

Mike:            Transparency is the only way to go, and that's how we're going to do this. (At) TD Beef, all of our cards are on the table face up. We've postured ourselves to lead with transparency in an effort to collaborate with everyone in the supply chain. Now, that doesn't necessarily mean that others have participated to that degree, but we're certainly making that effort. The shift is happening. We recognize that we're better together. A rising tide lifts all ships, and that's what's happening here in this space.

                     People want a story about their beef. That's why I came up with “from conception to consumption”. (The period) between those two points is 500 days. In this supply chain, we have no issue telling you where the animal came from, how it was raised, what it was fed, its performance in the feedlots. Maybe we'll get to a point where there's a QR code on there, (and) when you're eating your steak, you’ll simply swipe that and you'll see the story about TD Beef.

Tom:            That would be interesting. I'm just curious (about) what kind of smart technology that's come into play in your work and what you're doing (with it).

Mike:            Well, it's that technology that helps all of us do a better job. Specifically, we're starting to work with a company out of the U.K. called Breedr. The CEO and founder there is a gentleman by the name of Ian Wheal. What he does is he allows us to understand what is happening to the cattle with data collection, and then, (Breedr) extrapolates all of that data and then articulates it to everyone within the supply chain.

                     What I mean by that is everybody is always concerned with performance, first of all, because if you don't have good performance on the front end, we already know you're not going to have good performance on the back end. But we can demonstrate (that) certain groups of cattle are more likely to hit prime (and) then separate those cattle and sell those specifically to people who will reward us for doing it. Prime is a grade, of course — a specific grade. It's really limitless. But prior to this, we didn't really collect that type of data or share it. We're very excited about what the upper limits of that look like now, (and we’re becoming) very agile in our ability to progressively improve the supply chain because of that smart technology.

Tom:            Well, Mike, based on your experience, and in your view, what are the biggest opportunities in this dairy composites market?

Mike:            Having experienced my first Alltech ONE Conference, what I recognized when Dr. (Mark) Lyons was speaking today and then the lady right after him was (that) all of the science suggests that we could aim at (achieving greater) profits and protect the planet at the same time. You need the science, but you (also) need a system. They're equally powerful but uniquely different — and apart from one another, their purpose is limited. But when you're in this space and you can adopt the science in a system like TD Beef, it gives everyone an opportunity not just to create a more marketable product, but it allows you to care for the environment in the same way. I go back to how quickly these cattle are converting and gaining weight simply because we are starting by choosing the right semen and then allowing full genetic expression on our ranches by maintaining a good environment with a great nutritional program.

Tom:            It's science, isn't it?

Mike:            It is science.

Tom:            Mike De Groot, founding partner and director of TD Beef. Thank you, Mike.

Mike:            Thank you so much.

Tom:            For the Alltech Ag Future podcast series, I'm Tom Martin. Thank you for joining us. Be sure to subscribe to Ag Future wherever you listen to podcasts.