Cobb Focus Four 2012 (English)

Cobb’s Indian partner Venkateshwara Hatcheries Groupis unique in developing its own breeds which haveachieved great success in the Indian market. Cobb Focusasked Dr Genda Lal Jain, managing director of VencoResearch and Breeding Farms, about the breedingprogram and how this has met the challenge of localmarket.

What are your targets in breeding broilers for the Indianmarket?Dr Jain: The main objective of our breeding program isto develop our product in the same environment andhusbandry conditions in which the farmers and breedersare keeping their birds. All the pedigree birds are reared in open-sided houses

exposed to vagaries of nature and on similar husbandrypractices, feed and feeding practices as adopted by Indianbroiler farmers. Almost 98 percent of the broilers andabout 85 percent of the breeders are kept in open-sidedhouses in India. Major emphasis in the breeding programis given to feed efficiency, livability and growth rate.

How important is breeder performance?Dr Jain: India has been traditionally a chick selling marketfor several years. However, now the things are changing.Almost half the broilers are reared by the breeders in anintegrated setup using contract farming. This makes bothbreeder and broiler performance equally important.

How important is broiler growth and feed efficiency, andusing what type of feed?Dr Jain: Typically in India the broilers are marketed at theweight of 1.8 to 2.2 kg (4 to 4.9 lb) in different parts of thecountry. This growth is generally achieved in 35-40 days ofage. With the rise in the feed prices, the feed efficiency hasbecome the most important trait for the customers.

focusW O R L D W I D E

Bright prospects forgrowth of chickenindustry in India

FOUR 2012

in this issue

continued on page 2

B R E E D I N G F O R L O C A L M A R K E T

Dr Genda Lal Jain was electedto the International PoultryHall of Fame by the World’sPoultry Science Association atits congress at Salvador Brazil. The WPSA said that Dr Jain(pictured with its presidentDr R A E Pym) had developedVencobb broilers and alsoBV-300 layers ‘withproductivity levels matching,and often surpassing, the bestin the world.‘In the process it brought greatprosperity to poultry farmersacross India and facilitated the growth of the Indian poultry industry as thesecond largest egg producer and fourth largest broiler producer in the world.’

Investing in European research.....................................3

Breeding affordable welfare-friendly chicken........4

New Cobb-Vantress feed mill in Kentucky ...............5

New demand for CobbSasso breed..............................5

Praise for Polish industry.................................................6

Brazilian visitors look into future.................................6

New Breed4Food initiative..............................................7

Our new appointments.....................................................7

BREED ING FOR LOCAL MARKET

In fact, the breed decision is largely based on the feed efficiencyof the product and Vencobb has the best feed efficiency comparedto Ross 308, AA Plus and Hubbard, which are sold in the Indianmarket. The broiler diets typically used in Indiawould have energy levels of about 3000 Kcalwith about 20-22% protein depending on theprices of the ingredients.

How important is meat yield?Dr Jain: With the vast majority of chickensmarketed live, there is no concept of whitemeat and dark meat. Birds are sold on liveweight basis and freshly dressed at the shop.Consumers in India choose birds with ablooming breast rather for meat yield. Meatyield is just perception of the consumerbased on the bird’s appearance. However, inprocessing sector where chicken meat is sold toinstitutions and fast food outlets, meat yield isimportant.

What is the extent of your research activities?Dr Jain: Venco has a full-fledged pedigreeprogram with certain product lines and otherexperimental lines. All major product lines areon fast-track program feeding the pipeline every eight weeks.All major traits of economic importance for the Indian market aremeasured and evaluated, with the emphasis placed on differenttraits in the selection program according to market requirements.

Currently Venco is marketing three products.Vencobb100 is known for its high chick numbers andreasonably good feed efficiency. Vencobb400 hasreasonably good breast meat yield and feed conversionbesides excellent breeder performance. Vencobb400Yhas highest breast meat yield and better feedconversion along with excellent breeder performance.Currently Vencobb400Y is the most popular productin India due to its all-round performance.

How much are genomics featuring today and in nearfuture?Dr Jain: Currently we are not working on genomics. In

future we may take this up with the help from Cobb.

How are chickens mainly sold - whole, parts, processed, fresh orfrozen?Dr Jain: Almost 96 percent of broilers produced in India are soldas live and fresh dressed as whole. About 2 percent is sold asfrozen either as whole chicken or parts as cut-ups. Another 2

percent is further processed as deboned meatfor QSR’s like McDonald’s, KFC, Pizza Hut,Dominos and Subway.

How important is chicken in typical Indiandiet?Dr Jain: India is a country with multiplelanguages and culture with different foodhabits across the nation. Chicken is not anintegral part of the typical Indian diet.Approximately 25 percent of the populationis strictly vegetarian not consuming any typeof meat or eggs. Those who are non-vegetarian also don’t eat meat every day.Depending on their purchasing power, somewould eat once or twice a week and othersmay eat once or twice a month. Beef is not normally marketed in India

except the buffalo meat. Mutton has becomevery expensive due to paucity of grazing land.Pork is not normally consumed in India.Therefore, chicken is the only and cheap

alternative for meat eaters. In fact, QSRs like McDonald’s, KFC,Pizza Hut, Dominos and Subway primarily use only chicken intheir products, which will help to give chicken very brightprospects for growth in the Indian market.

2

‘Total support’ for Indianpoultry industryVenco is a joint venture between Cobb and VenkateshwaraHatcheries Group, the largest poultry conglomerate in Asiainvolved in all activities of the industry. Venco was establishedin 1980 and imported pure lines the following year to starta breeding program with the help of Cobb. The VH group has activities ranging from broiler and layer

breeding, production and processing to vaccine production,feed manufacturing, soya extraction, incubator and poultryequipment manufacturing, vitamin and mineral supplements,and SPF Egg production. The VH group’s motto is‘Total Poultry Support.’ The group has grown several fold in recent years

to become leader in most of the poultry sectors inIndia. Vencobb products enjoy more than 75 percentof the broiler market share and the BV300-layerbreed more than 85 per cent of the layer market inIndia - despite competition in both sectors from allmajor international breeds through grandparentdistributors. The VH group has benefited from a breeding

program developing products specifically for theIndian market by adopting the latest technology andfrom creating state-of-the-art facilities in all fields,with highly qualified, technically sound people.

continued from page 1

I NVES T ING IN EUROPEAN RESEARCH

3

Cobb-Vantress, Inc. is to invest €12 million($15 million) in doubling the capacity of itsHerveld pedigree farm in the Netherlandsover the next 12 months. Expansion of the farm, which came to

Cobb from Hendrix Genetics as part of theacquisition of the Hybro breed, is the latestmove in increasing the company’s globalresearch and development programme. Work will begin early November to

construct 13 new houses which are expectedto be completed within 12 months, thenrefurbishment of the existing buildings will begin. The expansionwill result in an estimated 35 additional jobs at the farm.Last year the on-farm hatchery was renovated at a cost of

€1.0 million ($1.25 million), increasing the hatch capacityand becoming the company’s first pedigree single-stagehatchery. “The Herveld farm investment reflects our commitment to

the importance of the European market sector to ourbusiness,” said Jerry Moye, president of Cobb. “Europeremains a key focus for Cobb’s long-term growth, and so thisinvestment is part of our overall strategy for the future.”A feature of the new houses will be the innovative system

for environmental control using ground source heat in winterand deep water from a nearby lake for pre-cooling incomingair in summer — believed to be the first such combined systemin the Dutch poultry industry.Roy Mutimer, general manager of Cobb Europe, has

welcomed the new investment. “This expansion of ourresearch capacity complements the investment in ourfacilities for producing grandparent stock to meet growingdemand from our franchise distributors across Europe, theMiddle East and Africa,” he stated.

“Over the past two years we’ve spent almost€4.5 million ($5.5 million) in rebuilding andre-equipping two of our great grandparentfarms in Norfolk, UK, reflecting our confidencein the increasing market for Cobb products inthis part of the world.”

The start of the new investment at Herveldcomes within six months of the opening ofCobb’s fifth US research complex built at a costof €17 million ($22 million) in Tennessee, statedas playing an important role in developing

broiler breeding stock to sustain the company’s position as a globalleader in broiler genetics.

Dutch pedigree unit to double capacity

View across the Herveld farm where the expansion will take place.

Cobb-Vantress Inc and Hendrix Genetics BV have signed anagreement to continue their research and developmentpartnership begun in 2008 for a further four years.The joint development agreement involves research into

livestock genetics, and will enable the two companies to furtherexplore business opportunities together. The partnership willstrengthen Cobb’s leading position in the broiler breeding industryand Hendrix Genetics’ leading positions in layer, turkey, swineand aquaculture genetics. Jerry Moye, president of Cobb-Vantress, stated: “The joint

efforts of the Hendrix and Cobb R&D teams have providedvaluable knowledge for both of our companies. Cobb is excitedto continue our partnership with Hendrix Genetics, and welook forward to discovering what opportunities may be in ourfuture.” The first four-year agreement involved a $US10 million large-

scale field evaluation of DNA selection technology in chickenbreeding, partly funded through a $US2.5 million grant from the

US Department of Agriculture and also involving a consortium ofleading universities and institutes in a number of countries. This research built on previous in-house and collaborative DNA

research performed at Hendrix Genetics and Cobb-Vantress,identifying the best traits through use of 60,000 genetic markers(called Single Nucleotide Polymorphisms or SNPs) and with theassistance of DNA chip technology.Hendrix Genetics has carried out large-scale field evaluation

of this technology for layers, and Cobb-Vantress for broilers.The universities and institutes supported the project with theirknowledge of quantitative genetics and DNA technology to assistefficient implementation of the project.With DNA technology, a small drop of blood from a bird will

yield data for predicting the performance of offspring. Besidesimprovement in speed and accuracy, product quality andconsistency, the technology is providing a much betterunderstanding of health and welfare traits important to the futureof the global poultry industry.

Research and development partnership extended

BREED ING AF FORDABLE WELFARE- FR I ENDLY CH ICKEN

Cobb places well over two million pedigreebirds every year of which only about 1.1%are selected for breeding purposes. Thisenormous number allows us to makepredictable progress in many traits at thesame time even if some, such as eggproduction and body weight, have a degreeof negative correlation.We’ve long been using a combination of

observable welfare traits by highly skilledselectors who remove inferior birds together with technologyto measure accurately certain welfare traits that are noteasily observable. These include removing birds with tibialdyschondroplasia using a Lixiscope and verification of theoxygen-carrying capacity of each bird with a blood oximeter.We support research worldwide to develop new technology and

improve the breeding program. A lot of this research is focused onanimal welfare and disease resistance (kinematic variables linkedto walking ability, innate immunity and genetic resistance toinfection).

Our geneticists believe it will still be possible to continue toincrease efficiency and improve welfare outcomes, using thecurrent technology. However, the increasing use of genomics willmake this task easier and more accurate.This science focuses on tracking multiple parts of genome

within pedigree populations using SNPs (single nucleotidepolymorphisms) to select for complex polygenic traits (unlikemarkers that were developed for single genes).From 2006 to 2009, the first unique 60,000 SNP microarray chip

was developed by Cobb to analyze the genomes of our pedigreebirds. Thousands of informative SNP markers were identified asresearch tools in each Cobb pedigree line and placed on this chip. We’ve now begun the process of associating SNP’s markers with

desirable traits in each pedigree line. This technology will allow usto select birds based on DNA (blood) testing and presence of thedesired SNPs and not just their phenotypic expression which isinfluenced by the environment.Genomic selection will not replace the current selection methods

- but it will complement them to increase the accuracy in the

selection process of all traits. Of particular importance will be those traits with low heritability

(fertility, certain leg disorders) or traits that are not easy tomeasure on pedigree populations such as disease resistance. At the moment disease resistance can only be selected by

challenging the birds to a particular disease, which cannot bepracticed on the pedigree birds. While we can simulate diseasechallenge studies via the use of pedigree relatives, it is risky toselect against a single disease/disorder as this change may increasethe bird’s sensitivity to another disease.Breeding companies have also a responsibility to maintain

genetic diversity and control inbreeding within the chickenpopulations. At Cobb we maintain over 40 different pure lines,including very slow growing, hardy colored lines. In 2007 Cobb established a partnership with Sasso, a leading

French company in the selection of traditional slow growingcolored breeds to develop jointly speciality products.Having a broad spectrum of genetic lines will allow us to

develop products that meet regional requirements either becauseof the specific environmental conditions or because the marketdemands differentiated products.Rather than progressive trait improvement within the lines of

already specialized existing products such as Cobb500, Cobb700,CobbAvian48, we are developing new ones by line replacement forexample with CobbSasso150 and CobbSasso175, or by selectingpedigree lines in specific environments (Cobb400Y in India).

How Cobb is meeting changing market demand

Evolution of poultry breeding

Broiler mortality vs body weight trends in the United States(Agristats, 2010)

Female mortality vs egg production in the United States

Development

Complexity and sophistication

1920 1940 1960 1980 2000 2010Year

Dual purposebreeds

TechnologyMass selectionfor growth

Selection forconformation

Independentselection forfeed efficiency

Development ofBLUP programmes

Massive expansion of traits(yield/health/skeleton/physiology/processing suitability)

Consolidation of major primarybreeders as sophisticationincreases

Pedigreerecording ofreproductivetraits

‘Chicken ofTomorrow’contest

Identification ofuseful geneticmarkers

‘Broiler’breedsintroducedto market

Globalexpansion ofbreedingcompanies

4

by PELAYO CASANOVAS, sales and technical director of Cobb Europe

NEWS FROM AROUND THE WORLD

The progress being made in developingimproved poultry equipment impressed CobbEurope’s technical team when they visitedfive suppliers in the Netherlands. During a week-long study tour the team

went to Jansen, Fancom, VDL, Vencomaticand Ciemmecalabria who each providedan update on their products and latestinnovations. “Our business as a breeding company is to

deliver genetic progress to our customersyear-on-year,” said Euan Meldrum, marketingmanager of Cobb Europe. “It has been veryvaluable for us to see that this progress isbeing matched by new technologies andtechniques in the poultry equipment sector.”Matthew Wilson, technical manager of

Cobb Europe, added: “Staying at the forefront on technical mattersis one of the most important attributes of our team. But it’s alsoa two-way process. A week like this not only helps keep our teamup to speed, it also allows the equipment suppliers to tap into ourextensive Cobb technical knowledge.“Our technical team has over 400 years’ combined technical

knowledge and the interaction between them and all equipmentsuppliers was greatly appreciated by all.”The day-to-day interaction that the regional technical team has

with customers is backed up by the Cobb World Technical SupportTeam which provides high-level specialist expertise on all aspectsof the poultry industry.

Equipment progress impresses Cobb technical team

Growing interest in free range chicken in Germany and the Netherlands has ledto the introduction of the CobbSasso breed into these markets. The demand for slower growing chickens reared more extensively represents

a niche market that is becoming more significant in both countries where animalwelfare is influencing consumer choice. The introduction of the CobbSasso 175 follows the move into Hungary two

years ago where the product is aimed at the ‘certified' and ‘intermediate' sectorsof the market. Last year one of Germany’s leading producers, Wiesenhof-Privathof, launched

a new brand based on the breed for chickens reared on free range, organic andother higher welfare systems. The CobbSasso 175 is a coloured chicken bred from a rustic brown female and

a white male, with around ten per cent of the broilers having brown feathers andproviding distinctive colour markings. It is a slower growing breed that offersproducers a wider choice for supplying the market with chickens reared tohigher welfare standards using either indoor and free range systems.

CobbSasso meeting German andDutch demand for higher welfare

Cobb-Vantress is to construct a new feed mill atGlasgow in south central Kentucky, United States, tosupply its expanding operations in both Kentucky andTennessee. The mill, projected to cost $US15 million, is the latest

investment in this region where Cobb has spent over thepast two years more than $36 million in a new hatcheryat Lafayette and a new research complex at Deer Lodge.Its location is close to a major area of corn productionfrom where Cobb plans to source most of its grain needs.Design of the new mill will give Cobb complete

control over feed formulation and quality, and helpcontain the cost of the finished products. One special feature will be a state-of-the-art pathogen

control system affecting the equipment and processes.Use of a specialized equipment, designated clean areascontrolled by airflow and other quality measures willhelp ensure salmonella-free feed. The plans are for site works to begin this autumn, with

completion scheduled for December 2013. The mill willemploy around 16 people including feed deliverydrivers.The Kentucky Economic Development Bureau has been

keen to attract this investment, with Denton Childs ofTyson Foods, who worked on tax incentives with the state,and Dan Iacconi, executive director of the Glasgow/Barren County Industrial Development EconomicAuthority, involved in negotiating incentives.

New Cobb-Vantress feedmill planned in Kentucky

5

NEWS FROM AROUND THE WORLD

More than 180 breeder and broiler farmers,veterinarians and nutrition specialists tookpart in the symposium organized by CobbGermany at Dzwirzyno, one of the leadingseaside resorts in Poland.Leo von Drechsel, general manager of Cobb

Germany and Wimex, said that Polish peopleshould be proud living in a country that isbecoming each year more important in theEuropean poultry business.James Truscott, director of Cobb Germany,

spoke about importance of a ‘tailor made’approach to poultry management, especiallywith significant shortage of feed raw materialsand dramatic increases in commodity prices.“Poland looks good among European

c oun t r i e s f o r i t sbreeder and broilerperformance,” he said.“Yet there is alwaysroom for fine tuningwith all our speakers pointing to importantdetails in hatching eggs, breeder andbroiler management and nutrition toachieve higher profitability.”The guest speakers - hatchery specialist

Dr Ron Meijerhof (left), veterinarianDr Matthias Todte, and broiler and breederspecialist Paul Welten - focused on

effective management in each segment of poultry production. DrTony Marangos, nutrition expert, spoke about feeding strategiesfor Cobb 500.James Truscott thanked the Cobb Polish team - Aldona van

Krevel, Ireneusz Rosada, Piotr Czaplicki and Tomasz Torgowski –for their part in making such a success of the event. During the ceremonial dinner Ireneusz Rosada, technical services

manager, announced awards for the best performing Cobb flocksin 2011 with the winners receiving cockerel award statues.

Poland ‘good among European countries for performance’

Cobb-Vantress hosted Brazilian veterinarians to give them aninsight into the development of new chicken products during avisit to Arkansas, USA.

The Brazilians visited the Cobb headquarters at Siloam Springswhere they learned about multiple aspects of the company’sresearch program and meat yield evaluation, and heard what they

can expect in the near future inresponse to changing trends in themarket place. At the Tyson Foods Discovery

Center at Springdale they touredthe state-of-the-art research anddevelopment facility where futurefood products are created and testedto meet ever-changing customerneeds.“They were impressed by all the

technology that goes into developingnovel products, and very pleased forbeing given the time to visit Cobbworld headquarters,” said AlbertoTorres, export manager for Cobb.

Brazilian visitors look into the future at Cobb-Vantress

The visitors also had time to glimpse intothe past at the Tyson Museum.

6

7

NEWS FROM AROUND THE WORLD

A group of 15 Swedish broiler growers visited Dutch farms on astudy tour organised by Blenta, Cobb distributor in Sweden andScandinavia, to exchange technical information. On a broiler farm in northern Holland they learned from the

experience of the Jukema family how to achieve top performancewith Cobb500 broilers. Indicators on this farm are low mortality,high daily gain and efficient feed consumption.“It was particularly Interesting for us to see heat exchange in

practice and how the farmer saves on the cost of gas by reusingenergy from the heat of the broiler house,” said Jan Pettersson,general manager from Blenta.The visitors also saw one of Cobb’s broiler trial facilities in Holland

where in 12 pens there are different Cobb lines for commercialtesting. Each pen has a separate feeding and drinking system, withbroilers measured on economic and technical performance.“Our growers were very satisfied and enthusiastic about the Cobb

performance,” added Mr Pettersson. “We appreciate the openness andhospitality of the Dutch broiler farmers. It was a good opportunity forus to exchange information in this way.”

Energyrecyclingon Dutchbroilerfarm

Two new appointments have beenmade by Cobb Europe – PieterOosthuysen becoming key accountsand regional technical manager forsouthern Africa and Gabrielle ZeterEuropean human resources manager.

Pieter Oosthuysen obtained anhonors degree in nutrition andreproduction at the university ofFree State and then began his career as a lecturer in animalproduction at the Glen College of Agriculture and theMangosuthu Technicon. Then after managing a regional breederoperation for Rainbow, he established Cobb South Africa in 2000distributing the breed in South Africa and eventually Namibia.

Gabrielle Zeter grew up in Franceand Germany, studied Europeanmanagement in universities at Reimsand Lancaster and obtained a master’sdegree in human resources. Fluent inEnglish, French and German, Gabriellehas seven years’ experience workingas a human resources manager forcompanies involved in DVD and airconditioning manufacture.

Welcome to Cobb Europe

Cobb-Vantress joins Dutch research initiativeCobb-Vantress, Inc. is one of four international companies in a newinitiative, known as Breed4Food, aimed at reinforcing the positionof the Netherlands as an innovative livestock breeding country. The other partners are CRV in beef cattle, Hendrix Genetics in

poultry and pigs, TOPIGS in pigs joining with the globallyrenowned Wageningen University and Research Centre, who allsigned a declaration of intent at Wageningen in September. The ambition is to form a top-ranking institute to further

knowledge and growth through using DNAtechnology, incorporating new characteristicsand adding value to the production chain.Innovation in these fields is seen as crucial tosatisfy the globally increasing demand for highquality animal protein.The target is to develop breeding programs that

not only increase the efficiency of the food chainbut also reduce the ecological footprint, respondto changing consumer demand and contribute toimproved welfare.“The combination of companies and their

knowledge is essential to be able to achieve theambitions of the Dutch agrifood sector,” said AteLindeboom, chairman of Breed4Food. “This way,we can make a joint contribution to the creationof added value in the production of milk, meatand eggs.”

Dr Mitch Abrahamsen, Cobb vice president of research anddevelopment, said he and his colleagues were excited to beinvolved in this innovative project.“This has the potential to impact significantly on a global scale

the breeding programs of agriculturally important species,” hesaid. “Collectively our partnership brings together an impressivecollaboration of scientists and businesses that can help realize thevision of meeting the needs of a changing world.”

Clockwise from top left: Martin Scholten, Wageningen; Antoon Van den Berg, Hendrix Genetics;Martin Bijl, TOPIGS; Dr Mitch Abrahamsen and Ate Lindeboom, CRV.

Efficient feed conversion and excellent

growth rate assist in the customer’s goal ofachieving a targeted weight with competitiveadvantage of lowest cost. Cobb achievesthe lowest cost of producing a kilogram orpound of meat in markets around the world.

The Cobb500 has the best uniformity inthe market. Higher uniformity gives theprocessor more birds within a target weightspecified by the customer. The Cobb500 isa competitive breeder providing excellentegg and chick numbers.

cobb-vantress.com

Cobb500 TM

The world’s most efficient broiler

PERFECTLYBALANCED 500

- The Competitive Advantage