Profiting from changing genetics

Dr. Grant Walling

Born Kendal, Cumbria, Grant graduated from the University of Liverpool in 1994 with a BSc Honours degree in genetics before joining the University of Edinburgh to sit the MSc course in Animal Breeding.
A PhD on gene identification and mapping in pig populations followed at the Roslin Institute, an institute better known for cloned sheep than pigs. On completion of his PhD in 1998, Grant spent some time mapping genes in Large White x Meishan populations for meat eating quality at Roslin. He then spent 3 months at AgResearch, New Zealand in Dunedin, focusing on fertility genes in sheep, before returning to the UK to lead the UK Sheep Genome Mapping project at the Roslin Institute.
Grant joined JSR in October 2003 and has been leading the Research and Genetics department since November 2004. He now occupies the post of Director of Research and Genetics.

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All industries must progress and evolve in order to survive in an increasingly competitive and global economic environment. The agricultural industry is no exception. As with mammalian evolution, it is interesting to note that the evolution of the industry occurs at a varying pace with relatively long periods of little change followed by comparatively rapid changes. These periods of rapid change are usually initiated by a major event, for the evolution of organisms this includes ice ages and meteor collisions.

Major changes in the pig industry have been initiated by disease breakdowns and changes in legislation. Both these events create a new environment for pig breeding and as Charles Darwin noted in “The origin of the species” back in 1859 “In the struggle for survival, the fittest win out at the expense of their rivals because they succeed in adapting themselves best to their environment”.

Viewing the pig industry from an evolutionary standpoint and reviewing the changes that have taken place in the last decade allows the identification of who are best adapted to their environment. Those that have adapted or are adapting rapidly are the most likely to benefit from change. Those unwilling or refusing to adapt to the new climate are likely to suffer a similar fate as that of the dinosaurs and dodos.

It is therefore worthwhile considering recent and forthcoming changes in the industry. These changes have or will create different environments. With each change it is interesting to note those that have benefited, or are most likely to benefit, in contrast to those that have not modified to the new conditions. Whilst many consider change to be deleterious to the industry, with every change there are those who benefit. Typically it is those who resist change or who are unwilling to adapt that are least likely to benefit from any new market conditions.

Health Status

The UK once enjoyed a privileged health status. The natural water barriers surrounding the island were very effective at keeping out unwanted diseases. With the increasingly globalised nature of pig breeding and the rapid rise in international travel this health status has sadly been eroded.

The industry has had to cope with outbreaks of Classical Swine Fever and Foot and Mouth Disease with PRRS and PMWS now endemic to the UK sow population. The result is substantially higher levels of post weaning mortality in UK pigs in 2004 compared to a decade earlier.

Table 1 Estimated increase in cost of production with increasing post weaning mortality based on an average breeding and feeding herd using figures from BPEX Pig Yearbook 2005.
Post Weaning Mortality (%)	Increase to COP
0	0
4	+1.6p/kg
8	+3.3p/kg
12	+5.1p/kg
16	+7.1p/kg

Table 1 estimates of the effect post weaning mortality has on the cost of production. This does not include any changes in the cost of medication or veterinary services that may also increase. Typically a PMWS free unit is able to run with a post weaning mortality of ~4%. Challenged units have a mortality of ~12% however during the period of disease breakdown this figure may be substantially higher. From Table 1 the difference between clean and challenged units is in excess of 3.5p/kg.

In response to the increased disease challenge some producers have tried using different sire lines. One theory behind such changes is that some breeds and lines are genetically more resistant to PMWS, however evidence for this is purely anecdotal. One benefit from changing sire line that many producers have seen is from heterosis or hybrid vigour. Heterosis is the interaction that occurs when lines from divergent genetic origins are mated together. Typically heterosis shows the greatest benefit for traits that are difficult to improve through conventional selection. This includes reproductive traits and reduced disease susceptibility.

Those that are profiting from such changes are choosing alternative sire lines that have something extra to offer. There is little benefit saving 4p/kg dwt in reducing mortality if the finishing pig grows slower and grades poorer resulting in 5p/kg dwt loss. Pietrain derived lines give improvement in killing out percentage and benefit the processors through improved meat yields in the higher value areas of the carcass. Duroc lines enhance meat eating quality to the consumer and can command a higher premium to producers. One surprising feature of the search for alternative lines is the number of producers that have changed genetics without considering the effect on their customer, the processor. At a time when the market is good this has not been an issue, however when the market changes those producers that have changed to less desirable lines for the processors may find they have simply solved one problem but started another. Using the parallels to evolution, a change that makes an individual more noticeable to a mate is of limited benefit if it also makes it more identifiable to a predator.

Removal of AGPs

From January 2006 legislation will outlaw across Europe the use of antibiotic growth promoters (AGPs) in commercial pig diets. Most producers have used AGPs as an insurance policy against minor disease outbreaks within their feeding regime, especially in the younger pig. Many producers are rightly concerned about the effect of AGP removal from their herd. Most concern from producers is that animals have become “acclimatised” to the AGP environment and that animals that previously performed in such conditions may not adjust to an AGP free farm. In such circumstances breeding companies have a responsibility to their customers to foresee these problems and address them prior to any change in legislation. Given this, JSR Genetics working alongside Primary Diets, have studied the alternatives to AGPs including acids, prebiotics, probiotics, plant extracts and enzymes. A suitable alternative has been identified and replaced AGPs in the nucleus farms at the start of the year. Producers can take comfort that animals purchased from JSR Genetics have therefore been tested and selected in an AGP free environment and will not suffer from the change in diet at the turn of the year. Further, JSR has been able to test the effect of withdrawing AGPs from commercial farms through JSR Farms Limited. The results demonstrated a small improvement in growth when AGPs were removed from the diet. Although difficult to explain, one hypothesis suggests removing AGPs improves feed intake without affecting FCR with resultant benefits on growth.

Overall, the prior knowledge of the change in legislation has allowed forward thinking breeding companies to negated any possible negative effects on customer businesses. This has been achieved by evolving selection environments prior to widespread changes been introduced across the industry. Indeed if many species had the same opportunities, for example developing cold tolerance prior to the ice age, the success of these species may have been very different to that described in the history books.

Maximising Carcass Value

The payment system to reward producers for a pig carcass varies across the world. The UK has traditionally based the payment on a combination of deadweight and the depth of backfat at the P2 position. Curiously, this system did not necessarily reward those producing the most valuable processing carcasses with the largest payment. The UK appears to be learning from our more advanced European neighbours and is now beginning a change to the AutoFOM system. The first UK processor likely to implement such a system is Geo Adams Ltd. The AutoFOM is able to take many measurements of the carcass as it is processed. The carcass can therefore be valued based on the value of each individual muscle to the processor. The payment will therefore be processor and market specific. Some South East Asian markets would attach highest value to the belly and shoulder. In the UK the highest value sections are likely to be the ham and loin. As processors will clearly be aiming to keep their overall average payment the same the likely effect of the AutoFOM is a re-ranking of payments. Producers previously paid the highest value for their animals will not necessarily maintain such a privileged position in the future. In areas of mainland Europe, the introduction of the AutoFOM caused the majority of producers to change to Pietrain derived sire lines as these produced the most profitable carcass. The other change was to encourage producers to develop feeding strategies to maximise meat yield rather than feeding to avoid the presence of backfat.

When facing change, the lessons learnt from others that have undergone similar experiences is invaluable when adapting strategy. The German example from the AutoFOM system provides producers with strong indications of the most successful strategies.

Exploiting a Niche

Countries without an organised pig industry are typically made up of many small privately owned herds of less than 20 sows. As the industry develops within a country the average herd size increases and the total number of herds decreases. During this process the smaller producers find it increasingly difficult to compete in an increasingly competitive market. Often the best strategy for these producers is to remove themselves from the competition and produce a different product, therefore avoiding the struggle against the larger herds. There have been several successes in the UK with value added products. Outdoor producers in two separate schemes with JSR Genetics have changed to Duroc and RN- Hampshire terminal sire lines to produce meat with additional meat eating quality. In both examples producers attracted additional premiums for their product. Such schemes should be appealing to producers who are unable to provide the market with low cost pig meat.

Evolution provides many parallels where species have evolved to live in different habitats in order to avoid competition in a previously crowded environment or to take advantage of a previously under exploited territory.

Symbiotic Relationships and Integration

The success of a business is often dependent on relationships with other companies. All businesses build relationships with their suppliers and their customers. A loss of either of these has a negative impact on the business. Pig breeding companies therefore strive for close relationships with producers, processors, retailers and consumers as each of these represent a link in the pork chain. It is worthwhile considering that all money in such a chain comes from the consumer. It is therefore in everybody’s interest to ensure the product maximises the value the retailer is able to extract from the consumer. It is this reason why integrated chains work so successfully in industry. If a retailer is confident that the product will sell well they can pass some of the value back to the processor. If the processor is confident of the retailers high value purchase they can reward to producer, etc. Potentially any genetic line can be incorporated into an integrated chain providing it meets the requirements of the consumer. Sadly, unlike other meat industries very few producers are aware of the requirements of their consumer. This is due to an overall poor communication structure in the chain. Once established, chains only breakdown when disputes occur between links in the same chain. It is worthwhile remembering that a producer’s biggest competition comes from other producers and not processors. Similarly processors biggest enemy are not the retailers but other processors.

Symbiotic relationships are numerous in evolution and prove very successful. One example familiar to those who watch wildlife documentaries is that between the oxpecker bird and animals such as zebras and rhinos. The bird eats small ticks and parasites that live on the zebras and rhinos skin and benefits by getting an easy source of food. The larger animal benefits from pest control. The relationship only works whilst each continues to provide a benefit for the other therefore in the pig industry a producer cannot expect to be paid a premium if their product does not continue to deliver benefits to the processor.

Reducing Costs

A key element of a successful business is the ability to keep costs low. This has become increasingly difficult during a period with new legislation and declining health requiring increased investment of facilities and medication. Larger producers are able to achieve lower costs through the economy of scale. The shear size of these businesses allows them to negotiate better deals due to their increased volume of custom. Smaller producers do not have these opportunities and therefore have to adapt their strategy.

Evolution has provided one of the most successful answers to these problems. This answer is herding. Smaller, more vulnerable animals herd together to offer increased protection to the group. Likewise, smaller businesses working together through active producer groups are able to replicate the economies of the larger businesses. Producer groups therefore can offer increased protection to the spiralling costs providing the members move and act together.

Evolution can therefore provide useful advice on change management. Many examples of the pressures affecting the pig industry have parallels with evolutionary processes. The philosophy that some people are resistant to changes does not follow if the word change is simply replaced with evolution. Indeed it is far more helpful to think of the pig industry evolving rather than changing. Evolution implies the development and progression of an industry rather than aimless trials of alternative variations.

Perhaps the final quote should come from the great man, Charles Darwin. “It is not the strongest of the species that survive, nor the most intelligent, but the most responsive to change”.