More than 120 delegates, directors, staff and guests gathered in Dallas, Texas, for the 2023 GENEX Annual Meeting. Attendees enjoyed the opportunity to tour a dairy farm and beef ranch, connect with staff and fellow members, learn from industry leaders, celebrate the cooperative’s successes, and have fun!
During the official business meeting, attendees heard updates on the cooperative from President John Ruedinger, CFO Sander Flanderijn and CEO Huub te Plate.
Our Year in Review & the Opportunities Ahead
The following excerpt, from Huub te Plate’s management report, highlights 2022 results and 2023 plans.
GENEX concluded a successful 2022 with sales growth in our Herd Genetic Line, Herd Care Line and Herd Tech line pillars. Top-line sales growth, along with inflation in several expense categories, resulted in a robust bottom line.
The Herd Genetic Line experienced continued growth in beef on dairy and GenChoice™ sexed semen sales in the U.S. market. The combination of GenChoice™ semen, conventional dairy semen and beef on dairy breeding optimizes the value of each calf born. GENEX is proud to be the leader in the combination of high fertility semen with powerful ICC™ and Lifetime Net Merit genetics. We create high value pregnancies for our members and customers.
The Herd Care Line flourished in 2022 with colostrum as the prominent calf care product. Getting calves off to a great start is key for future herd performance. The first full year of marketing SCCL colostrum broke all previous colostrum sales records. RumiLife® CAL24™ nutritional supplement, our once-and-done transition cow calcium bolus, also booked significant sales successes. RumiLife® CAL24™ growth was achieved, especially outside of the U.S.
The Herd Tech Line now has over 1 million animals enrolled in GENEX DairySuite™ Precision Genetics. This complete genetic planning program interfaces seamlessly with the industry-leading herd management program DairyComp and the VAS Pulse Platform. Our cow activity monitoring system, GENEX HerdMonitor®, had supply chain challenges throughout most of 2022; supply has improved, and we are busy filling orders.
The GENEX-owned Farm Systems had a very strong year for sales and margins. Farm Systems achieved record high capital sales for robotic milking systems and rotary parlors. Outstanding consumable and aftersales service contributed to Farm Systems having its best year in recent history.
GENEX expands internationally
Several investments were made in the international markets. We launched GENEX Argentina and have a sales team calling on Argentine dairy and beef producers with our products and services. In Brazil, we opened our GENEX Uberaba production center. Genetics from bulls housed here will be distributed not only throughout Brazil but also in other markets where Brazilian beef and dairy breeds are sought after. The Brazilian market however, for the first time in many years, decreased in A.I. usage in 2022. This was due to the beef cycle as well as decreased cattle farming economics. This will be temporary. In the mid- to long-term, we expect market growth again.
Staff demonstrates resiliency
As did our members and customers, GENEX also experienced inflation firsthand. Fuel, travel, labor and promotional expenses increased significantly. Costs have risen to a new level. Our staff is motivated to do more with less and charge for the value we bring.
The geopolitical issues, COVID-19 regulations, rising energy costs, feed commodity price increases and rising political tension affected GENEX in 2022. Several large markets such as China, Brazil and the U.S. beef market were stressed and did not perform as expected. This was partly offset by increasing share of wallet with current members and customers in several markets.
Overall, the mid- to long-term market outlook is positive. The global dairy demand outscores the dairy supply. This will lead – overtime – to robust milk prices. The U.S. dairy export performance is growing and is expected to keep going. Nevertheless, there will be volatility. The past years have shown we have to be resilient and adjust quickly as conditions change. The beef cattle market is expected to grow again, while beef cattle numbers have decreased and rebuilding of cow numbers will happen. This is all positive for your cooperative.
Genetics to drive sustainability
GENEX will be putting additional emphasis on sustainability in the years to come. We have adopted three major goals from those defined by the United Nations: 1) no poverty, 2) zero hunger and 3) climate action. Development projects throughout the world help producers increase their livelihood and increase milk and beef output. The continued drive for more efficient, resilient, robust, long-lasting cows will be positive for reducing environmental pressure.
GENEX is proud to partner with members and customers around the globe and offer solutions for the ever-growing need to feed the growing population while preserving our ecosystem for the next generation.
Thank you for supporting your cooperative.
GENEX Annual Meeting Photo Gallery
Browse this gallery of photos from the 2023 GENEX annual meeting held in Dallas, Texas. If you are a U.S. dairy or beef producer and a member of GENEX, you could become a GENEX delegate and attend our next annual meeting. For more information, please contact your local GENEX representative or email Terri Dallas, Vice President of Member Relations, at [email protected].
