Trans-World Genetis Wins Madigan Award for U.S. Agricultural Export Excellence - livestock genetics - Government Activity

AgExporter, June, 2001 by Linda Habenstreit

Last December, USDA awarded the first Edward R. Madigan U.S. Agricultural Export Excellence Award to Trans-World Genetics Ltd. of Sheboygan Falls, Wis. Recently, AgExporter spoke with Trans-World Genetics's Chief Executive Officer Louis A. Prange about his company and how it came to be honored with this prestigious award.

AgExporter: What does Trans-World Genetics produce and export?

Prange: We produce, distribute and market products and services related to dairy livestock genetics. The primary products we export are frozen bovine semen and embryos, as well as live cattle.

What is unique about our company is that we have a multinational progeny testing program. We sell semen from U.S. bulls to several countries simultaneously and then regularly analyze the latest breeding data to see what traits the sires are passing on to their daughters.

For example, we use the breeding data to determine whether the bull has transmitted improved mammary systems, size, capacity or other traits by comparing the sires' daughters to the rest of the population. We may find that the daughters are producing more milk or a more desirable fat and protein content than the general population. We also look at the maternal side of the equation to see what cows are transmitting improved traits.

We use this information to meet our customers needs. Every breeder in the world has a different set of criteria based on factors like what the cows are fed in a particular country or whether the milk produced goes to manufacture cheese, as in Switzerland, or fluid milk, as in Argentina.

AgExporter: It sounds like dairy livestock breeding has become very rigorously science-based.

Prange: Yes, it has. Breeding used to be more of an art form. To a certain extent it still requires that touch. Today scientific breeding tools give you the direction in which you want to travel, much like the rudder on a boat helps a sailor steer.

Ten years ago, international progeny test results were not a factor in determining the sires' ability to deliver improved production or other traits. Now, it's just as important to know how that sire performed in various populations as it is to know how he performed in just one. This knowledge can either enhance or reduce our marketing capabilities.

AgExporter: How did you get involved in this business and in exporting?

Prange: I grew up on a dairy farm and my grandfather was a breeder of dairy cows and my father specialized in production. When my father did some international work, we had a lot of visitors from Germany. In college, I was on a dairy cattle judging team and was exposed to people who exported.

In the early 1970s, I realized that the international market was vital, from a breeder's standpoint. I began working for the marketing arm of the Holstein Association, which at the time had a contract with the Foreign Agricultural Service to expand and develop markets for U.S. dairy livestock genetics. I traveled extensively for several years.

In 1974, I founded Trans-World Genetics. In 1978, we shipped between 4,000 and 5,000 head of cattle. Because the live cattle market became such a narrow, low-margin market involving substantial risk, we evolved from transporting live cattle to shipping frozen embryos and semen. Today, we ship a planeload of live animals every two or three years.

Shipping frozen embryos and semen requires careful handling and good documentation. The product is frozen in liquid nitrogen, which is a hazardous material. To ensure the best care and top standards, we work with highly professional export service providers in the areas of freight, insurance and international delivery.

AgExporter: What are your major markets?

Prange: We have a strong presence in South America and Europe with between $2-3 million in annual export sales. We have livestock partners and regional representatives in Australia, Brazil, the Dominican Republic, Germany and Switzerland. They help us maintain international market potential, growth and expertise.

We sell to Argentina, Austria, Canada, Colombia, Ecuador, France, Italy, Mexico, the Netherlands, South Africa and the United Kingdom. Although we have not done a lot of work in Asia, we certainly can supply product and services there when requested.

AgExporter: What have been your greatest exporting successes and toughest challenges?

Prange: Our greatest success was opening the first U.S. artificial insemination (AI) center in 1984 to meet Swiss health regulations requiring that all imported bull semen come from populations free of Infectious Bovine Rhinotracheitus (IBR). IBR is a virus that causes flu-like symptoms in cattle.

When the European Union (EU) harmonized its health standards to make them consistent among member countries, it adopted the Swiss health requirements. Since we already met this requirement, we had entry into the EU market--well ahead of other AI centers in the United States. This accomplishment probably accounts for the success of our business today.

On the flip side, exporting to the EU immediately after harmonization became one of our greatest challenges. Although harmonization greatly helped us in the long run, initial shipments regularly got held up in Customs either because the importing veterinarian did not recognize or was not aware that health standards had changed. It took a great deal of negotiating to help the veterinarian understand that the shipment did meet the standards and should be released.