Genetics Australia expands
Genetics Australia has announced the Cooperative is strengthening its position in the herd improvement industry with the acquisition of Total Livestock Genetics (TLG).
Genetics Australia will take over the TLG trading name from January 4, 2021 and GA’s bull management, semen management and semen collection and production services will be transferred to the TLG site in Camperdown, Victoria.
The $5.8 million purchase will create efficiencies in the semen production system that will reduce GA’s cost of production per year, allowing the co-operative to substantially build its business turnover. The purchase is a good strategic fit and will provide a platform for sustainability and growth. Adding capabilities to continue developing Australian genetics and create greater efficiencies to continue semen production in Australia has been at the forefront of the decision. The purchase will mean new products and revenue opportunities that will boost the service and capabilities offered by the Cooperative.
Genetics Australia will continue to market products nationally and internationally under its own name while TLG’s portfolio of genetic products will stay within the new Total Livestock Genetics Victoria (TLGV) entity as a separate channel of products. The TLG acquisition will also provide a platform for potential new international and domestic alliances and partnerships, create easier access to sexed semen services, and additional space for expanding bull numbers.
TLG partners Shane and Erin Ashworth and Steve and Michelle Williams, will stay on with the business. The move of livestock and production will mean several GA staff will be offered redundancies as part of the changes.
TLG will become the production and distribution facility for GA, with all bull and semen assets held at Parwan Park planned to be moved to Camperdown by the end of March 2021.
GA’s accredited collection facility at Bacchus Marsh “Parwan Park” will be sold during the next two years, although the cooperative will retain some office facility in the region. The Bacchus Marsh properties were increasingly becoming landlocked and the region fast becoming impacted by urban sprawl. By moving the collection facility to a more rural area was one of the great assets of the TLG business as its properties at Camperdown and Glenormiston have unlimited capacity for managing bulls for semen collection.
The opportunity to acquire TLG followed an exhaustive due diligence process and the benefits became clear. The Bacchus Marsh location has served the cooperative well for over 60 years and it will be a sad day for many when the “Bullfarm” is no longer linked to the region, as it will be for the staff not going forward with the business. Many of these staff have played a vital role behind the scenes and the cooperative is indebted to their dedication and commitment and we thank them and wish them and their families well for their future endeavours
The acquisition will ensure the ongoing relevance and success of GA in providing the best locally sourced dairy and beef genetics to domestic and international markets. The existing TLG service business, especially in toll collection of beef bulls and the recent work into ovine semen and embryos will provide an immense opportunity for GA to grow and offer all our customers world’s best products and services.
For more information:
Anthony Shelly 0408 529 410 or Trevor Henry 0429 451 548