1. South African Feedlot Association March 12, 2009 Practical Application of Gene Markers and Feed Efficiency Data for Today’s Cattleman By Dr. Roger E. Hunsley

2. GENETIC MARKERS Genetic Markers are available for the following traits:  Marbling: QG1, QG2, QG3, QG4  Tenderness: T1, T2, T3, T4  Feed Efficiency: FE1, FE2, FE3, FE4  Muscling (F94L)

3. GENETIC MARKERS Select a genomics company to test and verify your samples. Make certain that all procedures and genetic tests are committed to an extensive 3 rd party verification before the tests are made available commercially.

4. Table 1 Carries two copies of the favorable form of the GeneSTAR marbling gene Carries one copy of the favorable form of the GeneSTAR marbling gene Carries zero copies of the favorable form of the GeneSTAR marbling gene

5. Table 2 Average Outcomes When Mating Different Combinations of Parents with Particular GeneSTAR Ratings * This mating design illustrates Mendelian heredity and the probability of results from mating a 0, 1 or 2 STAR Sire and Dam.

6. MARBLING  Marbling is the number one price determiner of all cattle harvested in the U.S. and around the world.  The ultimate value and final price of a beef carcass is based more significantly on marbling than any other trait.

7. Table 2. USDA Marbling Score and Quality Grade Score. Quality GradeAmt. of Marbling Numerical Score Prime+Abundant10.0-10.9 PrimeºModerately abundant9.0-9.9 Prime-Slightly abundant8.0-8.9 Choice+Moderate7.0-7.9 ChoiceºModest6.0-6.9 Choice-Small5.0-5.9 SelectSlight4.0-4.9 Standard+Traces3.0-3.9 Standard-Practically devoid2.0-2.9 UtilityDevoid1.0-1.9

8. MARBLING*  Seventy-four 2003 – 2004 born steers that were basically unselected for DNA marbling markers were feedlotted and harvested.  9% had USDA Choice marbling scores. * Purebred Brahman steers

9. MARBLING*  Ninety-eight 2005 – 2006 born steers that were the result of intense selection for QG1 and QG2 DNA marbling markers were feedlotted and harvested.  30% had USDA Choice marbling scores. * Purebred Brahman steers

10. TENDERNESS  Consumer eating satisfaction is based mostly on the tenderness qualities of the product.  Consumers are willing to pay a premium for guaranteed tender steaks or other beef products.  Tender beef leads to more satisfactory eating experiences than any other trait.

11. Warner Bratzler = WB  Warner Bratzler (WB) is a mechanical Shear instrument that measures the force required to mechanically cut through a core of cooked steak.

12. Tenderness *  Ninety-eight 2005 – 2006 born steers that were the result of intense selection for T1, T2 and T3 DNA tenderness markers were feedlotted and harvested.  92% had Warner-Braztler (WB) shear values in the 3.00 – 8.99 lb. range. * Purebred Brahman steers

13. Tenderness  The leading meat scientists consider any beef sample that requires over 11 lbs. of WB shear force to be unacceptable for tenderness.

14. Shear Values for Unselected and Selected GeneSTAR Values Birth YearNo. Steers No. of STARSAvg. Shear Value 2003-2004¹24Unselected7.86 lbs. 2004-2005²611 0r 2 STARS5.49 lbs. 2005-2006³263 or 4 STARS4.82 lbs. ¹ 4 Carcasses in the 2003-2004 birth year had shear values over 8.99 lbs. ² 1 Carcass in the 2004-2005 birth year had a shear value over 8.99 lbs. ³ None of the 2005-2006 birth year group had shear values over 8.99 lbs.

15. Effect of USDA Quality Grade on Tenderness  Recent Studies have documented that 10-15% of USDA Choice carcasses had unacceptable tenderness scores.  25-35% of the USDA Select carcasses had unacceptable tenderness scores.  The result of the study indicates there is room for improvement of tenderness within all USDA Quality grades.  The value of having information about meat quality early in the animal’s life, rather than post-harvest, is priceless.

16. Results of Vassberg Brahman Test from BOVIGEN, August 24, 2007 156 Head Tested: 8 head were homozygous for QG1 and QG2 8 head had 5 STARs out of 6 possible STARs for tenderness 35% were 6 STARs or higher with the following breakdown: 6 STARs 40 head 7 STARs10 head 8 STARs3 head 9 STARs1 head

17. Average Marbling Score by STAR There were no 8 STAR animals. Source: Bovigen, LLC

18. DNA MARKERS FOR FEED EFFICIENCY  The 4 DNA markers for feed efficiency (NFI) have no genetic association to marbling, average daily gain, carcass weight and rump fat (P8).

19. Results of Vassberg Brahman Test Report from BOVIGEN August 24, 2007 156 Head Tested: In the Feed Efficiency (NFI) analysis, 82% of the animals had all 8 of the markers resulting in the following breakdown: 6 STARs1 Head 7 STARs26 Head 8 STARs129 Head

20. FEED EFFICIENCY  Pasture and feed costs account for nearly 70% of the total cost of producing beef.  Research has shown that NFI selection can reduce grass and feed intake by 15-20% while still maintaining the same production levels.  Today, this accounts for $150 to $250 savings in producing a beef animal.

21. NET FEED INTAKE (NFI)  Net Feed Intake (NFI) is equal to actual feed intake less feed intake for growth and metabolic (maintenance) requirements.  The heritability estimate for NFI is 0.40.

22. NET FEED INTAKE (NFI)  Efficient animals eat less than expected and have a negative or low NFI.  Inefficient animals eat more than expected and have a positive or high NFI.

23. GrowSafe Facility

25. NET FEED INTAKE (NFI)  Research has shown that selecting for NFI post-weaning and at maturity has a very high correlation of 0.90 to genetic improvement for efficiency in the cow herd through the daughters retained out of tested bulls.

26. The Effect of STARs on NFI and ADG (Involved 1,060 steers & heifers in finishing phase) STARsNumberNFIADG <38+ 2.47 lbs.2.88 lbs. 341+ 1.18 lbs.3.07 lbs. 495+.30 lbs.2.98 lbs. 5178+.22 lbs.3.04 lbs. 6307-.06 lbs.3.00 lbs. 7268-.20 lbs.2.94 lbs. 8163-.32 lbs.2.98 lbs.

27. Feed Efficiency  Numerous studies have shown that low NFI animals consume an average of 3.3 to 5.5 lbs. less feed per day than high NFI animals with similar growth and carcass characteristics.

28. NFI as a Selection Tool  NFI is the best selection tool for genetic improvement for Feed Efficiency at the bull breeding level.

29. Selected Data* from NFI Brahman Bull Test (Kallion Farms) Bull I.D. Initial Wgt. Final Wgt. Avg. Daily Gain Dry Matter Intake lb./day NFI lb./day Feed to Gain Ratio 43-536048132.9815.23-2.365.10 34-277558671.6018.66+2.6711.66 *Bulls with the highest and lowest feed to gain ratio in the test group of 64 bulls at the end of the 70 day test period

30. Selected Data* from NFI Brahman Bull Test (Kallion Farms) Bull I.D. Initial Wgt. Final Wgt. Avg. Daily Gain Dry Matter Intake lb./day NFI lb./day Feed to Gain Ratio 14-626988331.9311.49-4.505.95 41-615717011.869.87-3.415.30 4-256308042.4913.35-3.135.37 9-482810883.7121.09-3.055.68 23-1682110353.0618.92-2.996.19 *The five lowest (most desirable) NFI bulls at the end of the 70 day test period

31. Selected Data* from NFI Brahman Bull Test (Kallion Farms) Bull I.D. Initial Wgt. Final Wgt. Avg. Daily Gain Dry Matter Intake lb./day NFI lb./day Feed to Gain Ratio 36-176408282.6822.28+4.988.31 40-117329603.2624.99+4.077.67 30-68219892.4023.86+4.069.94 5-237909482.2521.60+2.849.58 13-635617422.5818.22+2.787.05 *The five highest (least desirable) NFI bulls at the end of the 70 day test period

32. Selected Data* from NFI Brahman Bull Test (Kallion Farms) Bull I.D. Initial Wgt. Final Wgt. Avg. Daily Gain Dry Matter Intake lb./day NFI lb./day Feed to Gain Ratio 23-1682110353.0618.92-2.996.19 30-68219892.4023.86+4.069.94 * Two bulls with the same initial weight on test but two-thirds of a pound difference in ADG, nearly 5 pounds difference in dry matter intake and more than 7 pounds difference in NFI at the end of the 70 day test period

33. FEED EFFICIENCY  Kallion Farms has documented almost a $5,000 difference in the genetic expression for feed efficiency between two purebred Brahman sires.  With cattlemen feeling the effects of corn prices that have more than doubled in the past 12 months, feed efficiency has moved to the number one position in our selection program.

34. Feed Efficiency  Selection for low NFI can have a very substantial economic impact on the beef industry.

35. New Kallion GrowSafe Test Facility - 2008

36. Purebred Brahman Heifers on a GrowSafe Feed Test

37. FEED EFFICIENCY  The purchase of a feed efficient bull will make a tremendous difference in your bottom line.

38. TEMPERAMENT Numerous studies have documented that mild temperament cattle returned more dollars in the pasture or the feedlot than aggressive animals. All Kallion Farms animals must pass a strict temperament evaluation to be offered for sale or used for breeding.

39. TEMPERAMENT Suggest using a chute side score or a chute flight temperament evaluation such as: T1 – Temperament Acceptable T2 – Temperament Questionable T3 – Temperament Bad - Cull

40. TEMPERAMENT MEASURES  Temperament Scoring System  Flight speeds measured at chute exit  Physiologic responses – Cortisol levels  Revealed eye white percentage using digital camera equipment. Range: 10 = good 60 = bad

41. TEMPERAMENT ? ? ?

42. ULTRASOUND Recent ultrasound results received 11/07/07 from the National CUP Lab & Technology Center on 82 purebred Brahman heifers off test were as follows: Average weight789 pounds  Average backfat thickness0.19 inches  Average ribeye area9.7 sq. in.  Average ribeye area per cwt1.23 sq. in.  Average intramuscular fat (IMF)3.32%

43. ULTRASOUND  Recently a test group of 38 bulls yielded the following ultrasound results: 0.19 in. backfat thickness 10.5 sq. in. ribeye area 3.17 % intramuscular fat (IMF)  One bull had 5.07% IMF and another bull had 4.42% IMF.

44. ULTRASOUND  Recently a test group of 147 heifers yielded the following ultrasound results: 0.14 in. backfat thickness 7.97 sq. in. ribeye area 3.37 % intramuscular fat (IMF)  Twenty-one of the heifers had 4.0% IMF or higher with one heifer at 5.75% IMF.

45. Typical IMF % Adjusted to 365 Days of Age in Beef Cattle IMF% of 2.0-2.99 Acceptable (Low Select) IMF% of 3.0-3.99 Highly Acceptable (High Select) IMF% of 4.0-4.99 Rare & Outstanding (Low Choice) IMF% 0f 5.0 or higher Rare (Average Choice or higher)

46. ULTRASOUND  Twelve percent of the total test group of 185 head had 4.0% IMF or higher which equates to Low Choice or higher marbling scores.

47. ULTRASOUND Ultrasound results received 02/21/09 from the National CUP Lab and Technology Center on 122 purebred Brahman heifers: Average Weight649 pounds Average Backfat Thickness0.10 inches Average Ribeye Area7.87 sq. in. (51 sq. cm.) Average Ribeye Area per cwt1.24 sq. in. Average Intramuscular Fat (IMF) 3.46%

48. ULTRASOUND Ultrasound results received 02/21/09 from the National CUP Lab and Technology Center on 122 purebred Brahman heifers: Twenty-four of the heifers had 4.0% IMF or higher with 3 heifers over 5.0% IMF. That’s 20% of the entire group with 4.0% or higher IMF ultrasound values.

49. ULTRASOUND FOR FERTILITY Ovary and horn size are measured via ultrasound @ 10-14 months of age on all females. At the same time, the females are ultrasounded for REA, BF and % IMF.

50. ULTRASOUND FOR FERTILITY 75 heifers between 12 and 22 months of age were ultrasounded for ovary and horn size (tract scores) on November 19, 2008. 40% were rated excellent or mature Of these, 80% conceived on first service when exposed to natural service 60% were rated poor or immature

51. ULTRASOUND FOR FERTILITY 39 heifers between 12 and 22 months of age were ultrasounded for ovary and horn size (tract scores) in December of 2008 17 scored excellent or mature (44%) 22 scored poor or immature (56%) 10 of the 22 that scored immature were acceptable for breeding after “ciders” were applied. 12 of the heifers were too late maturing and were culled... not used for breeding

52. ULTRASOUND FOR FERTILITY About 1/3 of each test group were too late maturing to meet the fertility standards at Kallion Farms

53. Ribeye Photos Purebred Kallion Farms Brahman Steer Carcasses

54. Steak No. 1

55. Steak No. 2

56. Steak No. 3

57. Other Tools Used in Conjunction with Gene Marker Technology  Warner-Bratzler mechanical shear instrument  GrowSafe – RFID automated data acquisition for net feed intake (NFI)  Temperament Evaluation  Ultrasound Technology  Sexed Semen  Invitro Fertilization (IVF)

58. Sexed Semen or Sexed Embryos

59. Sexed semen will produce 92-94% of the sex selected. Sexed embryos should be 100% accurate for the sex selection.

60. Invitro Fertilization

61. Invitro Fertilization (IVF) Why invitro fertilization? Shortens the generation interval from 5 years to 2-3 years resulting in a quicker turnover of your gene pool.

62. Invitro Fertilization (IVF) IVF allows for early embryo production and pregnancies from young females before they would be naturally or artificially bred to calve first at 2, 2 ½ or 3 years of age. Successful invitro fertilization has occurred at 9-12 months of age in females with pregnancies confirmed at 11-13 months of age.

63. EMBRYO TRANSFER Since May 2005, over 4,000 successful embryo transfers have been completed at Kallion Farms. In May 2006, the first IVF transfer that resulted in a pregnancy occurred at Kallion Farms.

64. Kallion Farms Summary  To date, we have documented improvements at Kallion Farms of one full degree of marbling in harvested steer offspring.  Kallion has also recorded a 20-25% improvement in tenderness through harvested siblings to the animals used in the breeding program.

65. Customer-Producer Value for Higher Marbling Scores  The price differential between a USDA Choice Grade carcass and a USDA Select Grade carcass is about $12.50/cwt. That’s $100 of added value for an 800 lb. carcass.  This is the minimum value differential per harvested feedlot animal.

66. Customer-Producer Value for Improved Tenderness Scores  The price differential between a guaranteed tender product compared to a product with questionable or unacceptable tenderness scores... PRICELESS!

67. Summary: The Future of Beef  “If you thought beef – steak in particular – was big last year, brace yourself.”  “We will see the unabashed growth in the steak craze”, according to D. Cowin, editor in chief of the Food and Wine magazine.

70. What’s in Store for the Future

71. New Technology Genomics – used to identify genotypes Phenomics – used to identify phenotypes

72. How? By Using BeadChip Technology The Illumina Bovine SNP 50 BeadChip is a glass slide that contains thousands of DNA markers called SNP’s SNP’s are used to find relationships between DNA markers and traits of economic importance!

73. BeadChip Technology A single chip generates about 53,000 genotypes for each of 12 individual animals. DNA samples from each animal are applied to the BeadChip and scanned to produce genotypes. Statistical analysis of genotypes can identify relationships between DNA markers and economically relevant production traits (ERT’s).

74. BeadChip Technology Researchers are developing large collections of cattle phenotypes or observable traits for the following: General Immune – System Functionality Body Temperature Respiratory Rate Feeding Behavior Post Weaning Feed Efficiency Life Time Production in Beef Cattle

75. BeadChip Technology Scientists have located genetically significant areas called “Quantitative Trait Loci” (QTL’s) that relate to production traits for the following:

76. BeadChip Technology 1. Beef Quality and fat composition Concentration of monounsaturated fat which is healthier than saturated fat Could lead to marker-assisted selection for fatty acid content of meat from beef cattle breeds Other desired nutritional traits in beef 2.Tenderness and Palatability 3.Feed Efficiency 4.Reproduction Success

77. SUMMARY Identification of genetic markers will provide opportunities to improve selection accuracy for traits that are difficult to measure in an industry setting.