Genus hails firmer beef prices as Sexcel offering received warmly

Animal genetics specialist Genus is trotting confidently towards full year growth targets after a "generally favourable" first four and a half months of its financial year.

Volumes, revenues and adjusted operating profits for the four months to 31 October all swelled compared with the prior year in both its porcine and bovine legs, PIC and ABS. Adjusted profits before tax were also higher, despite planned strategic investments in research and development.

One target of investment has been in Sexcel, Genus's new sexed semen offering, since its global launch at the start of September to an "encouraging" early customer reception.

Market conditions for livestock farmers were "generally favourable", Genus said ahead of its annual shareholder meeting on Thursday, with pigs profitable in most major markets apart from some price weakness in China, which had been strong last year.

Dairy prices globally were higher than the same period in the prior year which enabled more farmers to be profitable.

Beef prices stabilised in the US following their fall in the earlier part of the year, but conditions for Brazilian producers have remained challenging.

On Tuesday, Genus said it had agreed to begin working in partnership with Danish porcine specialist Møllevang Genetics from next July.

"Once the relationship commences, Møllevang Genetics will become an elite porcine genetics production partner for PIC in Denmark and will continue to distribute elite genetics to the Danish market and certain other countries."