Genetics Australia will enter into a new joint venture with global herd improvement leader URUS in a move that will bring huge benefits for GA users.
Subject to approval from GA members, the joint venture (JV) is due to start on July 1, 2023 and will usher in an exciting new era in Australian herd improvement.
GA members now have the opportunity to have their say on the proposal and Chairman Trevor Henry says the Board unanimously recommends a ‘yes’ vote.
‘Genetics Australia has a strong position in the Australian market, but the market is becoming increasingly impacted by global trends that we have limited resources to pursue,’ Trevor said ‘Partnering with one of the large multinational market participants is key to establishing Genetics Australia as a long-term sustainable supporter to Australian farmers.
‘The Board sees this joint venture as an extremely exciting opportunity for the Genetics Australia business to strengthen its position as the pre-eminent provider of genetic products and services to the Australian dairy and beef sectors, whilst at the same time providing great opportunities for the most critical components of our business our members and our staff.
URUS is based in the United States and is a global leader in products and services for dairy and beef artificial insemination genetics, reproduction, and farm management systems, servicing more than 80 countries with brands such as GENEX, ALTA Genetics, PEAK, and Trans Ova amongst many others.
‘Combining with URUS will provide Australian dairy and beef producers with access to market leading global genetics, technology and advice that simply could not be achieved by GA on its own; and GA will now have access to global markets for its Australian bred and sourced bull lineup,’ Trevor said.
‘This will assist in marketing Australian genetics to a global audience.’
The new entity will continue to trade as Genetics Australia. It will be 60 per cent owned by URUS and 40 per cent owned by GA. URUS will have three directors, GA two.
The JV will be through URUSs co-operative subsidiary business GENEX. It will have access to the full suite of products and services from the GENEX and PEAK subsidiaries of URUS.
GA will continue to own the land the business operates on and lease it to the JV for a commercial return. The GA Co-Operative entity will hold 40 per cent of the issued shares in the new business as an asset on its balance sheet.
Current GA CEO Anthony Shelly will manage the JV and all current staff of GAC will have continuing roles. The GA and TLG brands will remain active in the Australian market.
Anthony says URUS is perfect fit as a ‘partner of choice’ with GA. ‘All of our negotiations with URUS have focused on how the JV partnership can deliver enhanced products and services to GA”s members and the broader market in Australia,’ he said.
Anthony said that users wont notice any major changes under the JV. ‘You will still be dealing with the same people and receiving the same services but in the months ahead you will see an increased depth of products and more opportunities.
‘There are strong similarities between GENEX and GA which we believe will be of great advantage for the new JV.’
URUS CEO Paul Hunt described the JV as a fantastic opportunity for both partners. ‘We firmly believe that this can have a significant positive impact for Australian farmers,’ he said.
The postal vote process has started and members are encouraged to vote by 2nd May 2023.
