China has approved Geno for export of bovine semen
After many years of communication and trade negotiation, the first shipment of Norwegian Red semen for the Chinese market has left Store Ree.
Norwegian Red semen is the first Norwegian product to get new trade licenses after the breach between Norway and China.
The Norwegian Minister of Agriculture and Food, Jon Georg Dale, visited Store Ree to watch processing of the first shipment of Norwegian Red semen to China.
Timely reintroduction of Norwegian Red into China
"Geno is exporting the semen through their daughter company, Geno Global AS, that today distributes Norwegian Red semen to 30 different countries," says Sverre Bjørnstad, CEO Geno SA. "The Chinese market brings with it tough competition, and according to Geno Global's distributor in China, the farmers are having a demanding time with competition from imported dry milk. The prices for milk has decreased by 20-30% the last couple of years, which is part of the reason why the Chinese have chosen to go for the Norwegian Red. The Norwegian Red is efficient, has fewer expenses and gives good net profits. Hence, also lower costs for the farmer," says Bjørnstad.
World's biggest food market requests Norwegian Red genetics
In December 2017, 20,000 doses of the Norwegian Red bulls 11284 Skretting and 11229 Oksjale will be sent to China. Current estimates are that the Chinese will buy more than 100,000 doses in 2018. This will make China one of Geno's single biggest markets to date.
Why do they ask for Norwegian Red genetics?
Norwegian Reds are attractive because they are productive cows that produce both milk and meat, have great milk and milk component yields and have excellent health that lessens the use of antibiotics. Better fertility and livability are also important traits. In other words, a more trouble-free cow that produces efficiently and sustainably for both the dairy industry and end-customer, and results in greater profits for the farmer.
China has an increasing demand for milk and has put strong regulations for high quality in place. China is estimated to take over as the world leading market for milk and milk products in 2022 edging out the United States. China has a 14 million dairy cattle population and produces 37 million metric tons of milk annually. They consume about 50 million metric tons annually – or about 36 kg per person (approximately 9.5 US gallons).
The Norwegian Red breed has all traits the Chinese need to meet the increased demand for milk. The total size of the market for dairy semen is estimated at 25-30 million doses per year.
Will the Norwegian Red cow suit Chinese climate?
Norwegian Red semen was first exported to China in 2009 for trials to compare local purebred Holsteins with Norwegian Red x Holstein crosses. The trials were performed by the China Agricultural University and Inner Mongolia Agricultural University in a subtropical monsoon climate and in the North. Not surprisingly, the trials documented that Norwegian Red x Holstein crosses had few health issues, very good fertility, easy calvings, healthy appetite, strong legs, vitality and very positive production when compared to Holstein purebreds. In other words, China's current investment in Norwegian Red genetics is no coincidence.