“Since 1 June 2007, Euribrid is part of Hendrix Genetics B.V. “Our
Transcription
“Since 1 June 2007, Euribrid is part of Hendrix Genetics B.V. “Our
Thijs Hendrix *1955 Harry Hendrix *1926 +2010 Thijs Hendrix *1884 +1954 “Since 1 June 2007, Euribrid is part of Hendrix Genetics B.V. “Our family & company take great pride in embracing the past to catch the future” Thijs Hendrix Président Hendrix Genetics B.V. Villa “de Körver” Boxmeer, the Netherlands European Union July 2009 ©Copyright Kingsley Smith 2011 1 2 The History of Euribrid Founders Location Company Development Staff Products: Layers Products: Broilers Marketing Franchises Bibliography and Resources Founders Wilhelmus Hubertus Hendrix was born in Oirlo (Venray), Limburg, south of the Netherlands in 1896, the youngest child of Engelbertus and Anna Maria Hendrix. He had an older brother, Johannes (Jan) and a sister Anna. His family moved to Boxmeer in December 1903 and set up business as an agricultural merchant in the Spoorstraat. The first indication that Wim Hendrix would follow his father in agriculture was found in notary documents in 1916. His father’s business was entered in the Boxmeer trade register in 1921. In June 1925 Wim married Johanna Maria C. Reynen and two months later the family business was transferred to his name at the Chamber of Commerce and Factories in Venlo. Over the next 12 years Wim and his wife had six children of whom Engelbertus (Bert) would later enter the family business. Wim Hendrix 1896-1965, Founder of Hendrix Fabrieken N.V. and Euribrid BV. (Courtesy of Hendrix Genetics) In 1928 Hendrix Fabrieken NV began advertising compounded feeds for sale in a Boxmeer trade magazine and employed extension staff. The company grew to become one of the largest private cattle, poultry and pig feed compounders in The Netherlands. Farmers who purchased feed had access, within the framework of the business management at the time, to adopt several the services of the company. A pig farmer for example, purchased Hendrix bred piglets and Hendrix produced feed and they were treated by a veterinary surgeon approved by Hendrix who advised products from Intervet. Eventually the pigs ended up in the slaughterhouse of the company. Where such a link was lacking the farmer did not 3 get the premium price for his pigs. In the cooperative sector, such as Cehave Landbouwbelang, similar integration models were applied. Fifty one years later the family sold its shares to British Petroleum in 1979. The idea to start a poultry business was not Wim Hendrix’s. The inspiration came from Ir. Guust P.A. van den Eijnden. Following graduation from Wageningen Agricultural University van den Eijnden completed post-graduate studies at Aberystwyth in Wales, home of the famous "S" strains of grass and clover. At Wageningen and Aberystwyth he would have been aware of the developments in hybrid corn that had been produced in the U.S. by Pioneer since 1928 and by DeKalb Genetics since 1934. The Pioneer poultry department, Hy-Line, was selling semi-inbred line crosses in the early 1940’s and DeKalb placed their hybrid layers on the market in 1946. He may have been aware of the visits to the UK by Henry B. Wallace in 1949 and 1950, and the collaboration between Henry B. Wallace and Cyril Thornber which amounted to swapping some pure lines (John Harrison personal communication, and Thornbers Annual 1954). The text reads “Henry B. Wallace and Cyril Thornber in America examining some Thornber Breeding stock which was exported to Hy-Line Poultry Farms, Des Moines” (Reproduced from the Thornbers Annual 1954) Van den Eijnden was working as a corn breeder in the C.I.V. cooperative in Ottersum. He was selling his hybrid corn to the CHV in Veghel who gave him 6c/kg more for his hybrid corn on a licensed basis. Because of his hybrid corn breeding van den Eijnden recognised the potential of hybrid chickens. In the beginning of 1951 he obtained the Hy-Line brochures from the headquarters in West Des Moines, Iowa. He immediately wondered if The Netherlands was a suitable country to make it work in Europe. He did not have the resources to start the business on his own but he found out from his brother-in-law that Wim Hendrix was doing similar things. 4 Left Ir. Guust van den Eijnden, Co- Founder of Euribrid N.V. (Courtesy of Hendrix Genetics) Right Mr A.J.S. Derks with Wim Hendrix on his right (Reproduced with permission of Martinus Nijhoff) Van den Eijnden approached Wim Hendrix with the intention of trying to interest him in supporting his idea of producing hybrid chickens. Wim Hendrix asked van den Eijnden to explain the concept to a lawyer employee, Mr. A.J.S. Derks (Meester Derks) and left them to discuss the idea. Half an hour later Hendrix returned and Derks said there was something in it. That was how the idea of hybrid chickens was introduced to the Hendrix organisation in 1951. In the summer of 1951, Mr. Derks and Guust van den Eijnden went to England to introduce themselves to Henry B. Wallace. A daughter of Mr. Derks accompanied them to be, if necessary, their translator. In September 1952 Guust van den Eijnden and Bert Hendrix, the eldest son of Wim Hendrix, travelled to the Hy-Line farms in West Des Moines, USA. That resulted in the European agency. In 1953 Henry B. Wallace made a counter visit and in 1954 Wim Hendrix visited Iowa with advisor D. Mossel, Bert Hendrix and Guust van den Eijnden, who in November of that year was hired with a long term contract to Hendrix. In August 1955 Mr. and Mrs. Cyril Thornber and Henry B. Wallace, visited the Hendrix H.Q. After this trip, several more visits were made, culminating in November 1958 with the visit of the father of Henry B. Wallace, Henry A. Wallace to Boxmeer. Henry A. Wallace was the founder of Hi-Bred Corn, later to become Pioneer Hi-Bred, and was a Secretary of Agriculture and a Vice President in the Franklin D. Roosevelt era. However there were many difficulties to overcome before the idea was realized. The poultry cooperatives in The Netherlands were totally against it and De Bilt, the Government organisation for the management of chickens and egg industry, was totally against it. The view was that it would be impossible to import “miracle chickens”. The Dutch believed that The Netherlands was the most properly organised country in poultry breeding and production. There was a huge resentment of the prospect of hybrid chickens following WW2 when Europe had a fresh memory of the idea of a superior race of people through selective breeding. The cooperatives also warned that the introduction of the U.S. breeding methods would create a dependency on U.S. technology. The hybrid chickens would be a potential danger to their own poultry races and existing Dutch breeders. But it became a matter of time, not a question of if, when things would start to happen in The Netherlands. From the beginning Wim Hendrix knew he was definitely right to make his vision work in The Netherlands. Actually the first hybrid chickens arrived in Belgium in 1951 and were used to launch some clever publicity. Some chickens had been brought up in Belgium. Van Haeren, the Director of egg laying competitions in Belgium, France and Germany for 50 years allowed the Hendrix Hy-Line stock to enter the competitions. All of them were won by the new Hendrix product. Advertisements and articles in papers were creating good publicity and promoted the superb quality of the hybrids. Hendrix started, under supervision of Marinus van den Eijnden, brother of Guust van den Eijnden, a new brochure - HyLine News- to promote the idea and the quality of the new hybrids. This was similar to the Hendrix feed brochure. The pressure of the business itself really won over what the government was doing to stop it. In a parallel development in 1951 an International Breeding Congress in Paris produced a report totally focused on the hybrid breeding system. 5 The Dutch Cooperatives were in a very protective mode lead by their Chairman Mr. J. Tucker. Although poultry imports were prohibited in The Netherlands, Hendrix knew how to import fertilized hybrid eggs. Mr. G. Richter of the Laboratory Nobilis, part of the Hendrix Organisation, was able to import eggs for the purposes of vaccine production. On April 16th 1951 he made a request for the import of 720 hatching eggs from hybrid laying hens to the Director of Animal Health and Production located in Gravenhage. The purpose was to be able to do tests to get a higher virus concentration in the vaccination against pox and diphtheria. Letters had already been sent by van den Eynden to Henry B. Wallace at Hy-Line to include eggs from lines suitable for dams and sires. In a few weeks time 720 test eggs of different lines arrived in The Netherlands ready for “vaccine production testing”. On the 29th April 1951 the first eggs were placed in an incubator by van Duynhoven in St Anthonis. Left. Jan Grens holding the first Hy-Line eggs from America. Right. G. van den Mortel and H. ten Haaf with the first Hy-Line chickens hatched on 20 May 1951. (Reproduced with permission of Martinus Nijhoff) Henry B. Wallace visited Boxmeer in November 1959 L-R. E. Hendrix, Mr. M. Goosens, Ir. E.H.Tan, Ing. M. van den Eijnden, W.H.Hendrix, S. Seinen, Henry B. Wallace, Ir. G. van den Eijnden, dhr. Nuihaus. (Reproduced with permission of Martinus Nijhoff) 6 In November 1958 Henry A. Wallace visited Boxmeer. L-r Ir. G. van den Eijnden, E. Hendrix, Ing. M. Van den Eijnden, W.H. Hendrix. (Reproduced with permission of Martinus Nijhoff) TOP Location The company has been based in Boxmeer from the onset and until 1979, the take over of Hendrix by British Petroleum (BP), it was part of Hendrix Fabrieken N.V.. Euribrid was located in the Hendrix Fabrieken factory/office buildings complex in the Fabrieksstraat (nowadays “Wim de Körverstraat” ), the construction of which started in 1946. These buildings also housed the Nobilis vaccine laboratory founded by Hendrix in 1949. In the photo below the Euribrid office was situated in the building just to the left of the chimney stack. The Nobilis laboratory was located on the right backing onto a soccer field. The site, on the street renamed as Wim de Körverstraat, about 100m from the Villa de Körver, is now the location of Intervet, a descendant of Nobilis. The Hendrix Fabrieken headquarters in Boxmeer until 1975. (Courtesy of Hendrix Genetics) The family home of Wim Hendrix, the Villa ”de Körver”, was on Spoorstraat 69 and today it is the headquarters of Hendrix Genetics B.V. Building started on the house on 10th February 1937 when the first brick was laid. The building costs were 13.717,- Dutch Guilders (Euro 6235,-) 7 An aerial photo in 1939 of Villa “de Körver” (two storey house on RHS) with the poultry feed mill (LHS) and the office building on the street front. (Reproduced with permission of Hendrix Genetics) A new headquarters was planned and building finished in 1974 on Veerstraat in Boxmeer with Euribrid located in it. In 1979 all of the Hendrix companies were located here. This HQ served BP Nutrition after the takeover of Hendrix Fabrieken in 1979 and later became the HQ of Nutreco in 1994. The new Hendrix Fabrieken headquarters built in 1974 later to be the BP Nutrition and Nutreco HQ in which Euribrid was relocated to in 1974(photo taken in 1984). (Courtesy of Hendrix Genetics) Euribrid's breeding farms were located in a radius of approximately 40 km around Boxmeer. Some of the notable farms were for the early Hybro and Hy-Line breeding programs. At the beginning of development of Hybro a new farm was developed at Milheeze in 1956 (about 25k SW of Boxmeer) to house the females lines. The main Hy-Line farm for GGP’s, build in 1953, was carefully located very close to the Hendrix H.Q., not far from the Boxmeer railway station. In the Carmelietenstraat the testfarm for feedtests was rebuild in 1963 for the pure line birds for brown egg layers Left. Hybro farm at Milheeze where the Hybro female lines were established in 1956. Right. The Hy-Line Brown breeding farm established in 1963 on Carmelietenstraat in Boxmeer. (Reproduced with permission of Hendrix Genetics) 8 The Hybro farm at Herveld opened in 1995. (Reproduced courtesy of Hendrix Genetics) There were 2 new Hyline PS farms build in 1964, with a total capacity of 150.000 PS, at Vredepeel and Overloon, about 15k SW of Boxmeer. In 1971 a new farm was built at Beugen (2k N of Boxmeer) for the Hisex white layer pure line stock. In 1978 the layer pure line farm,mainly for brown egg layers, in Boxmeer was replaced by a new Research Centre in Venhorst with a complete new egg quality research laboratory.(about 18k east of Boxmeer). To replace the Beugen Research Farm,a complete new breeding farm, mainly for white egg layers, was opened in 1987 at Herveld (about 50 km NNW of Boxmeer), which farm was rebuild for the female lines of the Hybro breeding program in 1993. Strict bio-security measures were implemented at the new facility and the opening ceremony was held at the VIV exhibition at Utrecht. The opening ceremony was performed by Dr. P. Simons, then the President of the WPSA with Euribrid Chief Executive Paul Jeenes and Dr. S. Korver, the Euribrid Research Director in attendance. In 1980 already a new research farm for only the male lines of Hybro was started at Siebengewald.. TOP Development This article in “Poultry Industry” in 1971 was quite prophetic. “Since the EFTA countries plus the Common Market Six contain 220 million people, about 10 per cent more than the combined population of the United States and Canada, only the fragmentation of Europe into competing national groups can explain why it so frequently lags behind America in technology. As integration becomes reality in the "old world" however, the American lead in certain fields, such as poultry breeding, is liable to be whittled down by the advances of large groups. Euribrid N.V. of Boxmeer, The Netherlands is part of such a group, and has established an international reputation for its hisex layers and hybro broilers. The Netherlands has predictably become a focal point for progress and success in agriculture, since the sale of farm produce was her main source of income for centuries. From the end of the war however, The Netherlands has been transformed from an agricultural country to a highly industrialised one while many of her traditional customers have increased their own livestock production and reduced their imports. In these circumstances, the Dutch have tended to develop agricultural operations with a sophisticated technological basis and high product value, into which the breeding stock of Euribrid logically fits.” From October 2007 the exclusion of ownership by a North American company of a significant layer brand was complete; the ownership of the layer breeding brands was within Hendrix Genetics and the EW Group in Germany 1 1 From October 2007 the exclusion of ownership by a North American company of a significant layer brand was complete; the ownership of the layer breeding brands was within Hendrix Genetics (Warren, Golden Comet, Babcock, Bovans, DeKalb, Hisex, ISA and Shaver) and the EW Group (Hy-Line, Lohmann and H&N). Within 50 years of the Wallace’s creating Hy-Line, the first hybrid layer, all hybrid layers with significant international sales are now owned by European companies. The situation in the poultry meat breeding stock brands is almost the same. Cobb-Vantress Inc. (owned by Tyson Foods Inc.), the global number one 9 Hendrix Fabrieken N.V. A snapshot of the development of Hendrix and related companies involved in the poultry industry. 1928 Wim Hendrix started mixing feed as Hendrix Fabrieken N.V. 1949 Wim Hendrix founded a company called Laboratoria Nobilis. 1950 Developed the first Nobilis inoculum for Fowl Pox Ovo-Diphterin. In the following decade, there was virtually one new product introduction per year, including against Newcastle disease, coccidiosis and infectious bronchitis, all developed for use in poultry. 1951 Founded the poultry division of Hendrix Fabrieken N.V. for the distribution of Hy-Line layers in Western Europe (but not including Spain where distribution was operated by a Spanish company). 1952-53 Breeding development started on Hybro in Belgium. From than onwards called Euribrid. 1953 Partnership with Hy-Line and named Euribrid. 1956 Introduction of Hybro, the first hybrid broiler breeder from a European company. Late 1950’s Extensive research on pure race pig lines. 1961 Laboratoria Nobilis sold to KZO and later in 1965 through that company’s purchase of the veterinary division of Aspro-Nicholas in France, which had the name Intervet. 1965 Hypor formed. 1968 Hypor pig breed introduced for sale in Western Europe. Mid 1960’s Hy-line Brown development started, followed by the change to Hisex Brown. 1969 All the animal health activities of KZO were brought together into one company, and named Intervet International N.V. (the name Nobilis still exists, although it is now the brand name for a range of poultry vaccines). 1970 Hisex White and Brown layers for sale world-wide and cessation of Hy-Line distribution. 1970 Hypor sales in Belgium through Euribrid Belgium. 1971 Introduction of Hypor pig breeding programme into Japan with partners Tohzai Sangyo Boeki Company, later taken over by the Mitsui group. 1973 Formation of Hypor Spain. 1973 Acquisition of Pilch Inc, Troutman, North Carolina from DeKalb Genetics. 1975 Formation of Hypor International to carry on business in Japan, Philippines and elsewhere. 1975 Trouw, founded in Rotterdam in 1931 to import fishmeal and animal meal for cattle feed, becomes part of BP Proteins and BP Nutrition is founded. 1979 Euribrid acquired by BP Nutrition (via a complete take-over of Hendrix Fabrieken) to form the core of the breeding activities of the BP Nutrition division. At that moment Euribrid contributed to the groupresult of Hendrix 10% of the group turnover and 30% of the to group EBIT. 1981 Hybrid Turkeys Inc of Kitchener, Ontario, Canada acquired. 1986 Establishment of PT Hybro, a GPS joint venture in Indonesia for Hybro and Hisex. 1987 Establishment of Ozanac Hybro, a GPS joint venture in Turkey. 1991 Acquisition of Clock and DeCloux Inc, Ithaca, New York for Hisex distribution in USA. 1991 Hendrix family acquire Bovans after Hypeco Poultry Breeders and CPI stops trading (unrelated to the founder Wim Hendrix). 1994 Management buyout of BP Nutrition establishes Nutreco, with Headquarters in Boxmeer. 1998 Euribrid layer breeding activities Bovans and Hisex merge with Hendrix Poultry Breeders in a 50/50 joint venture known as Hendrix Poultry Breeders BV (HPB) and become a Nutreco company. 2000 HPB acquires Dekalb Poultry Research (including J.J.Warren Inc. and Kimber Farms), from Toshoku Japan/Cargill USA. in broiler breeding, to a lesser extent in terms of volume, Perdue, and to a much lesser extent than Perdue, Peterson Farms, are the only major poultry meat breeders owned by American companies. Another major meat breeder is the EW Group (Arbor Acres, Lohmann Indian River, Ross, Nicholas Turkeys and British United Turkeys). A smaller player, with more diverse products is Groupe Grimaud with the Hubbard broilers and Grimaud Freres Selection (muscovy, mulard and pekin ducks, rabbits, turkeys, pigeons, guinea fowl, geese, and meat chickens). 10 2005 Hendrix Genetics BV founded by Antoon van den Berg and Thijs Hendrix. 2005 Hendrix Genetics acquires Institut de Sélection Animale (including Shaver Farms Canada and Babcock USA) and SFPA (Société Francaise Production Avicole) from Natexis Industrie, Paris, France and acquires HPB from the Hendrix family in Ospel. 2007 Hendrix Genetics purchases Euribrid from Nutreco. In line with Nutreco’s strategy “Rebalancing for Growth” Nutreco decides to let grow Euribrid outside Nutreco to industry leadership. 2008 Hendrix Genetics acquires from Glon-Sanders (majority owned by Sofiprotéol) the number one French privately owned pig breeding company: France Hybrides. 2008 Sofiprotéol acquires a 12% longterm strategic minority shareholding in HG. 2009 Hendrix Genetics acquires Shade Oak Swine, a Canadian Duroc breeding company. Back to the beginning The people who develop businesses sometimes have a vision of the end point and strive to achieve it by overcoming all kinds of obstacles. Wim Hendrix played a vital role in building the international breeding company. He had impressive personal initiative and enormous perseverance. He had the personality and confidence to build up a business and a passionate belief it would grow to an international size. Over 25 years Hendrix guided development of his business. Many of the steps that Hendrix undertook were in the face of private and institutional opposition. In 1951 the majority breeders throughout Europe were strongly opposed to new breeding methods because it upset vested interests and traditional breeding practices. Hybro was the first development. Its beginning was in the early 1953 at the Belgium town of Lanaken about 13 km south of the border and 112 km from Boxmeer. Hendrix firstly promised the Belgiums that they could start as quickly as possible with their own breeding centre and they could get import licences for single cross hens. The Belgium Government encouraged a product from the homeland that would stop the import of the North Netherlands Blue (Noord Hollandse Blauwe). It had all the attributes required accept dark feather stubble: quick growth, good feathers, white skin, good conversion and good meat. The breeding plan was set up by Guust van den Eijden. His contact with the Hy-Line breeding program convinced him of his ability to breed a new broiler that would enable Euribrid to fill the gap he felt existed in the European broiler market. The first Hybro product was on the market in 1955. It started from scratch using such raw material as the discarded day old cockerels from the commercial egg hatcheries, in particular those producing the popular Rhode/Sussex sex-link. As development progressed changes were made to the lines used in the cross. A large number of broiler breeder lines had been purchased on the open market. At that time they were freely available. The development proceeded and the next Hybro was derived from four synthetic lines from stock of various origins including the American White Cornish and White Plymouth Rock. The Hybro was introduced into Denmark. It was very difficult in the beginning, government controls meant that no chickens were imported. Hendrix introduced Hybro stock by concealing some breeding eggs in a box underneath a load of stones. Once breeding was started the Danes were unimpressed, no Danes were involved because they could not understand the concept of the breeding program and so the Hybro breeding stopped. For many years Wim Hendrix continued to annoy the national government and agricultural organisations, in The Netherlands, Belgium, France and Germany. By 1960/61 Euribrid N.V. had 13 million Hy-Line layer hens in Western Europe and an annual output of 100 million Hybro broilers. By 1961 the company had over 200 employees with their own health care and a publication HyLine News. In 10 years Euribrid had grown into a huge business in West Europe and had made a significant difference to the breeding systems. In 10 years Hybro had grown to be the most successful broiler in Europe. Hy-Line During the 1950’s in The Netherlands it was as if time had stopped. However, a lot of hard work saw the introduction of Hy-Line stock on to the market. There was continual harassment in press articles and letters against the cooperation with Hy-Line. Wim Hendrix kept up personal discussion and visits to 11 all the relevant government agencies in the De Bilt and Den Haag. A lot was going on among interested parties. Visitors to Boxmeer received extensive maps with documentation and pictures that was called “the Hendrix thinking over”. In Germany the increasing market share showed the strength of the new breeding system. Euribrid stayed in the German market, despite the efforts of the German Association of Economic Poultry Breeders and other associations. In 1953/54 they started selling with 14,000 Hy-Line breeders and 7 years later the total turnover was 4.1 million chickens. Euribrid Germany had in 1960/61 over 57 employees, breeding centres at Hesepe and Brockhagen with 22,000 birds, 90 Hy-Line breeding houses and the market share of German breeding hens was 12 to 15%. Wim Hendrix thrived in an atmosphere where there was industrial and governmental opposition. Although he was always at loggerheads with the government he did receive awards and official praise. These interactions had a positive role in the framing and implementation of government regulations and laws. Without the opposition of many people the outcome would have been very different. Because of the opposition the development went a lot quicker. Hendrix succeeded because his fighting instincts were ignited by the opposition to his dream. During the early stages Hendrix was so obsessed with the hybrid breeding and all the challenges that it created that for a month he neglected the feed department much to the displeasure of the employees. During the initial years from 1955 to 1960, there were some very positive results although research costs were high and financial losses were incurred. At one stage Hendrix was seriously worried about the possibility of failure. The set-up costs were quite exorbitant and Hy-Line Belgium gave financial support since the Belgium government backed the development. The bulk of Hybro parent stock sales were from grandparent farms in the Boxmeer area or from distributors in other countries such as Hy-Bred Poultry Ltd in the UK. In The Netherlands Hendrix was also involved in the final product through its own processing plants and by parent stock sales to competing feed integrators. By early 1970’s the Hybro broiler had achieved about 30% of the European market, both East and West. Sales of parent stock were around 6 million/year. The research and development costs of a poultry breeding operation are very high so a breeding company has to think of the world as its market if sales volume is to be sufficient to recoup these costs and make profits. Euribrid set out from the beginning to be an international organization. A substantial financial backing is required to carry out a development programme well in advance of any return from the market. Hendrix Fabrieken N.V. was able to fulfill that role, a diverse organization employing in the 1970’s around 2,500 people, with feed mills in The Netherlands, Belgium and Germany and substantial interests in chicken processing, cold storage and spice manufacture. Hendrix produced about 600,000 tons of feed/year, slaughtered 700,000 broilers a week in its own processing plants and provided cold storage for over 5,000 tonnes of products at Boxmeer. That was how Euribrid was able to be the first European breeder to succeed as a major force in global food production. In the 70’s there was a new political and economic climate in Europe. There was a large measure of unity in the Common Market (Belgium, France, Italy, Luxembourg, the Netherlands, and West Germany), and by the end of the 70’s United Kingdom, Denmark and Ireland joined the fold. Europe, as the European Economic Union, formed a unified market of more than 200 million, corresponding in population to the United States. Since Europeans were largely the source material of the American people, and there was no reason why, given similar favourable circumstances, they should not hold their own in competition. Euribrid N.V., with a youthful staff, whose average age in 1970-71 was 32, pursued an independent line of management and development from its holding company Hendrix Fabrieken N.V. In The Netherlands the company employed some 20 independent hatcheries to handle hatching eggs exclusively. A further 40 hatcheries took broiler stock, but not necessarily on an exclusive basis. The hatcheries owned the birds and also dealt with sales. However the hatcheries were in turn visited by Euribrid's advisory staff. About 95 per cent of all Euribrid stock were sold as reared pullets. The hatcheries retained farmers prepared to rear birds under a contract. Eighteen week white pullets sold for about Dfl 7 - 8. 12 Sales of commercial stock were handled by nine subsidiary companies – called "daughter" companies at the time- into more than 67 countries. For instance in Switzerland a subsidiary was started in Dozwill in 1969, under the management of Franciscus X. Furrer, for the distribution of Hy-Line and Hybro Stock, taking over from Hybrida A.G. Separation of Euribrid and Hy-Line In the mid-60s the dynamics of the relationship between Euribrid and Hy-Line was causing problems. The level of heterosis achieved in the second generation of breeding the Hy-Line GP lines was below expectations though it started to improve again in 1968. Turnover was low in 1966/67. Euribrid was developing breeding technical and commercial independency in the middle 50’s with the Hybro broilers and had developed two new products in the 60’s, the Hyline Brown (with Hy-Line help) and a hybrid pig Hypor. The Hyline Brown was an average performer in the 60’s used mainly by Euribrid’s existing breeders and customers. Hy-Line did not have a brown egg product and were therefore not really concerned about this performance. That’s why Euribrid started their own breeding program for brown egg layers in 1967 and launched the first Hisex brown in 1968 The break with Hy-Line White started in 1968. Euribrid believed Hy-Line was treating them as a distributor rather than an equal partner and were starting to work towards being an independent breeder. A white egg product was required to fill the gap and breeding it did not create many problems. However marketing was focused on the American branding and that would no longer exist if they broke away too soon with their own white layer. In 1968, contrary to what Hy-Line had agreed not to do, they started to send more and more of their Indian broiler, Indian River, to the Far East. Euribrid decided to make a definite break with America. Thus after 18 years of close cooperation they transformed from a European to a world-wide sales organisation. In January 1970 they began to warn their customers and business associates that change was imminent and in September the change from Hy-Line to Hisex White began. More than 500 layer breeders in 20 countries continued to operate with a different white layer without knowing the performance profile. The company had developed a trusting relationship with its customers because Wim Hendrix saw his clients or customers as partners. The decision to break away in 1970 was significant in the development of the breeding division. The market share of Hy-Line was shrinking in Western Europe and Euribrid was building its marketing share outside Europe. The Euribrid American division took over Pilch in 1973 and in the following year Euribrid exhibited in their own right in the U.S. The Hisex Whites were entered in various Random Sample Tests (RST) starting in 1972. As can be seen in the results of the combined RST, in the Tables below, performance from 1975 was as good as the best in the U.S. and Canada. Quality and Service The purpose of management in achieving a growing market share was to sell a quality product that was not just a chicken. The presentation of a first quality product in every aspect was crucial to this purpose. The breeding division aimed to give the commercial producer of layers or broilers a genetic package that achieved high profit margins in current economic circumstances. In 1979 BP Nutrition acquired Euribrid and it was important to top management, 50 years since the beginning of the feed division, that they wished to produce more parent sales particularly as exports. At the end of 1979 Euribrid exported to 80 countries world-wide. Since 1976 every year 45% of the growth of the breeding division turnover was abroad. In the local market Euribrid products produced between 30 to 40% of division turnover. From a starting point in 1970 Hisex had grown by 251%, Hypor breeding pigs 186% and Hybro broilers 313%. The export of poultry grew by 394% to 1979 and the pigs grew by 512%. The managers wanted to see steady growth and stabilization of products within the division. In 1976 poultry started to decline whereas pigs were recovering from a slump in 1974. In 1979 Hisex had a 35% of the domestic market and worldwide was starting to show stabilization. The view was that a higher market share could only be achieved with a stronger product differentiation using a very modern 13 distribution and service system. It was preferable that they saw the world trends going to the brown egg market through the Hisex brown breeding hens. The Hybro broilers, where Euribrid had a domestic market of 38% in 1979, had a very strong growth of turnover. In 1979 the share of the broiler market was 6% in the world and 5% in the EEC. In the third world countries the broiler was a relatively new product with a high risk, and the Euribrid main product became the Hybro parent stock. A growth of 8 to 10% per year was expected. Hydon Turkeys was a promising new product that was introduced in 1979. Euribrid took over the bankrupt Coolen BV Indico, a once successful business. The world-wide the production for that year was 300 million and in the EEC 90 million, with an expected growth of about 10% per year. Hendrix Business Philosophy Euribrid was following the Hendrix philosophy in the poultry markets in respect of quality, marketing, product-image, service and product information. The competition was owned by multinational companies such as the Rockefeller Corporation, Merck, Sharp and Dohme and Cargill all of which were based in the USA. They focused on product sales, with very low-margins and without intensive product information and support. In contrast Euribrid gave a very complete information package of the product and technical services. The breeding products that came as part of Euribrid’s vision were only good if they fitted in to the specific business model. The division was fully prepared to provide information and advice for the live product and also husbandry practices. Because the Euribrid product was more expensive to produce and service, normally it took one or two years before the product differentiation in the sales results were visible. Success in the American market was difficult. A low exchange rate existed in the late 70’s and the Americans had cheaper feed and low transport costs. The purchase of Pilch Inc was to change that whole process permitting a U.S. base for all Euribrid products. The general perception was that the products were high quality and had a growing market share. The production manuals supplied by Euribrid were provided as small booklets, slightly smaller than A6 size and were unique in respect of the size in the industry, and as such helped define the brand. Euribrid staff organised training for customers as part of the service package. The Hisex Brown and Hybro technical information booklets 14 Ad van Hedel in a training support role (Courtesy of Hendrix Genetics) A Euribrid training seminar for world-wide customers (Courtesy of Hendrix Genetics) Hendrix and Euribrid combine layer breeding In 1998 a letter of intent was signed by the boards of Euribrid B.V., a subsidiary of Nutreco Holding N.V. and Hendrix Poultry Breeders to merge their layer breeding activities (Hisex and Bovans) in a 50/50 joint venture with the aim of expanding their joint market position and reducing the overall cost base. The annual turnover of the new company was expected to be approximately 25 million guilders. The Bovans and Hisex breeds continued to be distributed through the existing channels. 1999 Reorganisation A letter from the Managing Director Over the last 12 months Euribrid has been organizing itself into a product group structure for each of its main areas of activity. The reason for this is to increase the focus on customer service, product quality, and to bring product development closer to the market place. The result is five clearly defined, self sufficient groups and a compact staff office to provide some central support services. To better reflect this new organisation structure and to improve communication to customers and suppliers Euribrid has changed it legal structure and names of legal entities. The most obvious of these is that Euribrid B.V. has been renamed to Hybro B.V. and will assume only the activities of our Hybro product group and serve as the basis for our corporate staff. Two new companies have been established Hifeed B.V. and Hypor B.V. for our feed export and pig breeding activities respectively. Hybrid Turkeys remains under the legal structure of Nutreco Canada Inc. In October of last year our layer breeding activities were merged into Hendrix Poultry Breeders B.V. which is a Nutreco joint venture. In the attached page you will find a complete overview of company names, relevant bank, telephone, fax, VAT and company registration numbers. Please make a note of those changes that are relevant to your dealings with our company. Despite these changes to the legal structure, I wish to assure you that there has been no change in the ownership of Euribrid's activities. The name Euribrid will continue to be used as the name for all the animal breeding businesses within Nutreco. All of the previous obligations incurred by Euribrid B.V. will be honoured in the future. We are dedicated to offering a full continuation of products and services and trust that you will not suffer any inconvenience from these changes. Yours sincerely Antoon van den Berg Managing Director 15 TOP Staff Directors and Managers , Bert Hendrix, son of founder was General Manager from 1953 to 1978 then Anton Billiet, a Belgium, General Manager took over from 1978 to 1992. Mr. Vogels was commercial manager from 1968 to 197, .followed up bij Mr. Rob Veltman until 1992. Mr.Marinus van de Eijnden was the manager of Euribrid in the Netherlands up from the beginning to 1987. Guust van.den Eijnden (founding father of Euribrid) was Managing Director and Research Director until his death in march 1983.He was also several years member of the executive board of Hendrix Fabrieken N.V.. His planned successor Mr. Kees Hajer died in an car accident in Mexico in 1982. Jaap Vente was Director of Research for all products from 1985 to 1988 and afterwards for Hybro to 1992. After leaving he joined Pas Reform, the incubator manufacturer, Dr. Siem Korver was the next Research Director. Paul Jeenes was CEO from 1992 to 1997. Antoon van den Berg was CEO from 1997 until early 2000.Since 2005 he is CEO of Hendrix Genetics. Aalt Dijkhuizen was CEO from 2001-2002. Since 2007 member of the International Advisory Board of Hendrix Genetics. Roald van Noort was CEO from 2002 until 1 June 2007. Under his leadership Euribrid was merged into Hendrix Genetics. Richard van Wijnbergen was General Manager of BP Nutrition and the founding father and the first CEO of Nutreco (management buy out that led to the formation of Nutreco in 1994 and subsequent listing of Nutreco on the Amsterdam Stock Exchange in June 1997. A.o., Henk Bakker, Wout Dekker and Antoon van den Berg were members of his top team). He was the first CEO of Nutreco until his retirement in 1999. Since 2007 he is Chairman of the International Advisory Board of Hendrix Genetics. Euribrid UK when set up in 1970 was managed by initially by Jim Colvin and Nelson Thompson was sales director. Geneticists Originally a corn geneticist, Guust van den Eijnden was the head geneticist from the inception. Ad van Hedel was up from 1962 his assistant for broilers and responsible . Addie Vereijken, originally a plant breeder, was an assistant to Ad van Hedel in the Hybro program and for a while was involved in the Hybrid turkey program. He also later moved to the Breeding Research Department within Nutreco for DNA research. While distributing Hy-Line, Euribrid were establishing pure lines for Hy-line Brown. Mr. Han Tan, with periodical assistant of the Hy-line geneticist Loyd Schweitzer was responsible for that layer program. When Han Tan left in 1966, Kees Haijer took over and was later also responsible for the Hisex white layer program together with his assistant Theo Peters. Guust van den Eijnden became Technical Director of Euribrid in 1968. These five steered the breeding program until 1983 when Kees Haijer was tragically killed while travelling in Mexico and in the same year Guust van den Eijnden also died. The geneticists Piet Koeken started his work for the Brown Layer Pure Lines in 1978, and left the company with the reorganization nin 1993 Jan Sallevelt, starting in Euribrid in 1978 with turkeys, was placed in 1984 on the White egg program , with Arian Groot as his assistant, while Theo Peters was concentrating on the Brown egg program. In 1987 Jan Sallevelt moved to the commercial sector and Arian Groot took over his work for the pure lines for white egglayers. 16 Gerald Albers, who later headed the Breeding Research Department within Nutreco, started his project on DNA research in 1986. This research centre was started to carry out work on DNA analysis, marker selections, developing new software to do all the statistics for all the breeding programs; Addie Vereijken was responsible for the creation of a lot of the statistics software and the general organisation side of the breeding business. Ad van Hedel Ad van Hedel came from a family farm in the south of The Netherlands. He studied biology with specialism in genetics with specialization in population genetics. He finished study at University in 1961 and stayed one more year as an employee. Then he joined Euribrid for started in the broiler breeding program. After about 10 years he became more and more independent in guiding the Hybro program. He was responsible for the Hybro breeding program until 1994. It became progressively technically more demanding with travelling for sales support an important part of the job. He was also responsible for the Hypor program and for five years, together with Theo Peters, responsible for the HyLa rabbit program in France. During 1978 to 1980 Euribrid took over Hybrid’s turkey breeding which entailed travelling to Canada for 6 years or so. Arian Groot Arian Groot was a graduate of Wageningen Agricultural University where he specialised in genetics and breeding. He joined Euribrid in 1984 as a geneticist for the layer program, starting with the Hisex White, then after a few years he became responsible for the Hisex White program. In 1993 he took on Hybro broiler program for about 7 years after which he joined Hendrix Poultry Breeders responsible for layer sales and marketing and by 2003 was the Sales and Marketing Manager. TOP Products: Layers Euribrid started breeding programs for their brown and white egg layers in the mid-1960’s and initially launched the Hisex Brown in 1968 followed by the Hisex White 2 years later. The development of the Brown Layer in 1964 , the Hyline Brown, was eventually with the support of Hy-Line when the brown egg market in Europe was rapidly expanding. But after2 years of terrible results with the Hyline Brown (the 844), Euribrid decided to go their own way with creating the Hisex Brown. The company was unable to use the letter Y in the name of their new layers. So while it could not be Hysex, a product differentiation was achieved with Hisex. There was also a ruling that governed the use of capital letters in product names; so in various publications hisex white and hisex brown may be seen, or a mix of Hisex white and Hisex Brown. The unravelling of this naming has been avoided here and capital letters are used. Hisex Brown The Hisex Brown was the first own layer Euribrid marketed. Brown egg sales were increasing throughout Europe in the 1960’s and in Britain in 1970 there was a close balance between white and brown egg sales. The Brown was entered in RST in Britain and at the Northern Ireland, Gosford RST in 1969/70 the Hisex Brown produced 250.6 at 72 weeks of age. It was also the best brown egg layer, and, when the brown egg price bonus was added in, came second overall, just five pence behind the white egg winner. The feed conversion was 2.225kg feed/ doz. eggs, with an average food intake of 130g/day. Mortality was 6.5 per cent and the final average carcase weight was 2.370kg. This was a result that gave the Brown credibility for prospective purchasers and there was a definite improvement in commercial performance over that seen in the mid-1960s, and this also no doubt helped the cause of the Hisex White when introduced the following year. The manager of Euribrid Ltd in the UK, Jim Colvin, was confident of the 17 prospects for both Brown and White on the basis that his order books were full up to the end of March 1971 helped no doubt the very good result in the Gosford trials. Measuring shell deformation of Hisex Brown eggs (Courtesy of Hendrix Genetics) A 1970 Poultry International advertisement claimed that on commercial farms throughout Western Europe with a sample size of 100,000 birds the Brown produced 267.8 eggs over 13 months, a feed conversion of 2.87, an average egg weight of 63.1g and a mortality of 12.7%. It was claimed that: “the results showed that the hisex brown produces the most possible eggs, on the least feed practical and at the lowest practical cost. hisex brown eggers do offer extra profit potential because of their more prolific egg production, the unexcelled quality of their eggs, their hardier livability during both rearing and laying and their thriftier feed conversion. Because of its extreme docility, the hisex brown is an exceptionally easy bird to manage, and will readily adapt itself to almost every environment. Moreover, hisex brown has a good carcase at the end of lay.” A Hisex Brown in the 1990’s (Courtesy of Hendrix Genetics) An independent review of the Hisex Brown was presented in a Poultry Testing Assessment dated July 1971 following the Gosford 1969/70 Trials: “What kind of bird is the Hisex Brown? It is one of the smallest body brown egg stocks, tends to mature early and like a number of them has the brown and white feather markings. When one visits the Euribrid Headquarters in Boxmeer, meets the young and enthusiastic team of technical and commercial staff and sees the way they organise the development and production of their stocks one is extremely impressed. Compared with some of the other international poultry breeders, Euribrid are relatively new to the scene. The fact that they have stocks throughout the world apparently performing well, indicates just how hard they have worked and how dedicated they are to their aims of achieving a major slice of the world's stock markets. This performance of the Hisex Brown in public laying tests can only be measured on a few tests that finished in 1970. The bird is in a large number of tests in the current year but only interim results are available at this stage. The information on the Hisex Brown, from public laying tests, is confined to 1969-70 tests at Gosford in Northern Ireland, Ploufragan in France and Starbroek and Merelbeke in Belgium. In these tests the level of performance of the Hisex Brown have in each case has been compared with the performances of other brown egg stocks. The comparisons are made with the 'leading group’ of brown egg entries, i.e. those birds with the highest profit scores in each test. Comparison with the test averages has the disadvantage that it is only the average of stocks in that particular test. It is safer to assume that the best stocks will enter the tests. Therefore the 'leading group’ is likely to 18 be a fair assessment of what is currently best whereas the test average is unlikely to be an assessment of the average of all stocks available.” Hisex White Euribrid held the franchise for the Hy-Line White until 1970 and then launched their own white egg layer, the Hisex White. It was the fourth product launched by Euribrid which had already launched Brown, Hybro Broiler and the Hypor hybrid pig. From January 1970 they started to warn their business associates that they were going to change. A press release in Poultry International in November 1970 stated that the company was intending to distribute the Hy-Line layer for some years to come. In September the change from Hy-Line to Hisex White began. At the time of launching the bird slotted between the ultralight weight and the medium hybrid, which had a level of food consumption then regarded as unacceptable. It had the size and temperament to stand up to commercial farm conditions but meet the 108-114g/day consumption requirement of that period in Europe. The first Hisex White for commercial sale (Reproduced with permission Poultry International) It was introduced into the UK in October 1970 through the already established distribution of Euribrid Ltd. Euribrid marketed the bird as capable of about 280 to 290 eggs in a 13 month laying period with an average egg weight of 61g. The body weight at 20 and 72 weeks of age was 1.450kg and 1.980kg, respectively. Typical feed conversion was 2.64 with a feed energy level of 2750-2800 kcals/kg The White had mortality levels of 5.3% during rearing and 1% per month during lay; it was claimed to have outstanding levels of disease resistance and was easy to manage in cages or on litter. A Hisex White in the 1990’s (Courtesy of Hendrix Genetics) 19 Left Measuring food intake in Hisex White males, Right Pedigree egg collection (Courtesy of Hendrix Genetics) The period of introduction of the Hisex White and Brown layers broadly coincided with the peaking of the number of RST being conducted throughout Europe and North America. Being first, second or third in any category, or overall, in a Test was always a significant marketing opportunity for a breeding company. In 1973 Euribrid announced that throughout Europe the Hisex White achieved nine first places, three second places and three third places in the 15 tests they had entered. And they staked a claim that the White was the most profitable white egg layer in the world. The Random Sample Egg Production Tests in the U.S. and Canada and Europe were analysed in two year segments to adjust for year, test location and housing effects. The simple data were adjusted and then regressed to account for variations in the number of tests entered, number of years entered and the number of replicates per test. The results were presented every two years starting in 1960 in the U.S. and 1978 in Europe. In the U.S. a publication was produced by the Agricultural Research Service (ARS) of the U.S. Department of Agriculture and in Europe, a report was published initially by the Agricultural Development and Advisory Service (ADAS) in England and later in the World’s Poultry Science Journal. The Americans completed the statistical analyses of all the data and presented 80% confidence limits. These confidence limits are shown in Income over feed and chick costs only in the tables below. In Europe the results were presented showing stocks that were significantly better (+) or worse (-) than the average at the 10% level of significance. When the Hisex White was first entered in the American RST, some notable breeds were absent, particularly Warren and DeKalb. But included was the Thornber 808 hybrid from Mytholmroyd, Yorkshire, England and Kath Line from the Vechta district in Lower Saxony, Germany. Thornbers began poultry breeding in 1906 and in 1955 was probably the first of European breeder to produce a hybrid layer. By entering the American RST they were attempting to establish themselves in that market. The Kathmann family began poultry breeding in 1892 and produced the Kath Line hybrid layer in 1958, probably the second European company to breed a hybrid layer. They established a base in Canada and entered the American RST to extend a foothold in the N. American market. Thus uniquely there were three European breeders in the early 70’s trying to become established in the North American market. Only Euribrid was successful. The results were summarized in 1972-74 RST report. In the tables below all the American data have been sorted by the IOFAVCC and all the European data have been sorted by the egg production number. Breeder An extract from the 1972-74 two-year Combined Summary of the U.S. and Canadian RST. IOFACC $ Strain Laying Egg Production Egg Weight Mean (80% CL) Mortality % HH Number g White Shells Shaver Babcock Euribrid Park’s PF Starcross 288 B-300 Hisex White Keystone B-1 5.6 9.5 8.0 6.3 245 242 242 233 3.73a 3.65ab 3.46abc 3.37bc 60.8 60.3 60.0 59.6 20 Thornber PBD Kath Line 808 H 63 9.3 11.9 220 212 3.26bcd 2.93d 59.1 58.9 Brown Shells Harco Sex Link 5.4 225 3.31a 62.7 Babcock B-380 6.1 233 3.24a 61.9 Welp’s PBF 650N 4.6 229 3.21a 60.3 Tatum Farms T-173 5.6 226 3.19a 62.7 Hubbard FI Golden Comet 5.0 223 3.13a 63.6 Shaver Starcross 579 8.1 211 2.70b 62.2 Means (within shell colour) with the same postscripts are not significantly different at the 5% level An extract from the 1974-76 two-year Combined Summary of the U.S. and Canadian RST. Breeder Shaver Euribrid Hubbard Babcock DeKalb DeKalb Strain Laying Egg Production Mortality % HH Number White Shells 288 Hisex White Hubbard Leghorn B-300 XL K-137 3.9 4.5 5.6 6.3 8.8 8.9 258 257 251 242 244 224 IOFAVCC $ Egg Weight g 5.14a 5.14a 4.64b 4.46b 4.32bc 4.08c 61.2 59.6 60.0 58.9 59.6 59.6 Brown Shells Shaver 579 2.7 237 4.42a 62.4 DeKalb Amber Link 3.3 242 4.37a 60.8 Hubbard Golden Comet 7.1 230 4.26a 62.2 Warren SSL F 3.2 233 4.15ab 63.6 Babcock B-380 3.1 234 3.86b 61.7 Means (within shell colour) with the same postscripts are not significantly different at the 5% level An extract from the 1976-78 two-year Combined Summary of the U.S. and Canadian RST. This was last combined summary of the U.S. and Canadian RST. Breeder Shaver Euribrid Babcock DeKalb H&N Hubbard Strain Laying Mortality % Egg Production HH Number White Shells 288 Hisex White B-300 V XL Nick Chick Hubbard Leghorn 5.0 5.3 6.2 6.0 6.9 7.7 256 257 249 251 238 245 IOFACC $ Egg Weight g 5.09a 5.05a 4.95a 4.89a 4.43b 4.40b 63.4 60.3 61.0 61.0 59.6 61.0 Brown shell Shaver 579 3.9 242 4.76a 65.0 DeKalb Amber Link 5.5 250 4.72a 62.9 Hubbard Golden Comet 5.6 244 4.64a 63.1 Babcock B-380 3.9 249 4.58a 64.5 DeKalb Warren SSL F 5.1 238 4.53a 65.5 Means (within shell colour) with the same postscripts are not significantly different at the 5% level An extract from the Combined European RST completed in 1978 Breeder Euribrid Shaver Strain Hisex White 288 Egg Feed efficiency Production HH Number White Shells 270+ 268+ 2.66+ 2.63+ Egg Mass Kg Egg Weight g 15.5 15.8 58.260.4 21 Lohmann DeKalb Babcock LSL XL B-300 262 260 259 Euribrid Bovans Warren Babcock Hubbard Hisex Brown GL54 SSL B380 Golden Comet 2.70 2.69 2.69 15.3 15.4 14.8- 60.6 58.958.2- Brown shell 259 2.79256 2.71 272+ 2.66+ 261 2.70 256 2.76 15.4 16.3+ 17.0+ 16.0 15.5 60.2 62.4+ 63.4+ 62.7+ 60.6 + or – strain deviates from the average in a desirable or undesirable direction at the 10% level of significance An extract from the Combined European RST completed in 1981 Breeder Strain Euribrid Shaver Lohmann DeKalb Babcock Hisex White 288 LSL XL B-300 Euribrid Bovans ISA Babcock Lohmann DeKalb Hubbard Hisex Brown GL54 Brown B380 LB GL Golden Comet Egg Feed efficiency Production HH Number White Shells Egg Mass Kg Egg Weight g 292+ 2.47+ 283 2.54+ 282 2.52+ 276 2.58 2702.64 Brown shell 286+ 2.60 279 2.62 276 2.66276 2.65 276 2.71271 2.63 270 2.62 17.6 17.7 17.7 16.9 16.2 59.8 62.3 62.2 60.6 59.3 18.0 17.9 17.4 17.5 17.4 17.5 16.8 62.7 64.3 64.1 63.4 63.0 65.0 62.8 + or – strain deviates from the average in a desirable or undesirable direction at the 10% level of significance An extract from the Combined European RST completed in 1986 Breeder Strain Egg Feed efficiency Production HH Number White Shells Lohmann DeKalb Bovans Euribrid Hubbard Shaver Babcock LSL XL White Hisex White White 288 B-300 303 294 291 289 287 281 278 ISA Lohmann DeKalb Hisex Hubbard Brown LB GL Brown Golden Comet 292 288 284 282 268 Egg Mass Kg Egg Weight g 2.35 2.38 2.37 2.42 2.49 2.47 2.49 18.8 17.8 18.2 17.8 17.7 17.3 17.0 61.9 60.4 62.1 61.5 61.5 61.3 60.8 2.41 2.49 2.52 2.48 2.67 18.7 18.2 18.0 18.2 17.0 64.3 63.2 63.3 64.7 63.3 Brown shell A statistical analysis was not carried out on these results An extract from the Combined European RST completed in 1991 Breeder Lohmann Strain Egg Feed efficiency Production HH Number White Shells LSL 306+ 2.29 Egg Mass Kg Egg Weight g 19.1 62.3- 22 DeKalb Hisex Shaver XL White 288 Hy-Line ISA Warren Lohmann Hisex DeKalb Brown SSL LB Brown GL 305+ 2.31 302+ 2.31 300 2.28 Brown shell 301 2.33 300 2.28 300 2.24+ 295 2.30 294 2.46- 18.518.518.6- 60.961.562.0- 19.2 19.5+ 19.6+ 19.0 18.4- 63.6 65.3+ 65.1+ 64.3 62.4- + or – strain deviates from the average in a desirable or undesirable direction at the 10% level of significance An extract from the Combined European RST completed in 1995 Breeder Strain Egg Feed efficiency Production HH Number White Shells Bovans Lohmann Hisex DeKalb ISA Babcock Shaver White LSL White XL B-300 288 Bovans ISA Warren Hisex Lohmann Shaver Hy-Line DeKalb GL SSL Brown LB 579 Brown GL 311+ 309+ 305 301 297 295Brown shell 310+ 304 300 298 295 293292- Egg Mass Kg Egg Weight g 2.11+ 2.13+ 2.18 2.13+ 2.10+ 2.25- 18.5 19.8 19.1 18.7 17.9 18.5 59.864.1+ 62.862.5 60.362.9 2.17 2.11+ 2.202.16 2.13 2.212.33- 19.7 19.3 19.4 19.1 18.4 18.7 18.5 63.7 63.7 64.7+ 64.2+ 62.263.2 63.5 + or – strain deviates from the average in a desirable or undesirable direction at the 10% level of significance An extract from the Combined European RST completed in 1997 and 1998 Breeder Strain Egg Feed efficiency Production HH Number White Shells Lohmann Bovans Hisex Shaver LSL White Hisex White 288 Bovans Hisex Hy-Line ISA-Warren Lohmann GL Brown Brown SSL LB 321+ 319+ 319+ 305Brown shell 322+ 315 315 312312- Egg Mass Kg Egg Weight g 2.14+ 2.21 2.16+ 2.23- 19.9 19.0 19.4 19.3 62.059.560.963.4+ 2.19 2.20 2.21 2.15+ 2.17+ 20.3 19.7 19.8 19.7 19.5 63.3+ 62.7 62.8 63.0+ 62.5 + or – strain deviates from the average in a desirable or undesirable direction at the 10% level of significance 23 Breeding Systems Hisex2 At that time an important part of the Hisex breeding program was to have breeding facilities with a replicated uniform environment across all buildings so that all the birds have the opportunity to perform to their genetic potential in the same conditions. Euribrid constructed three identical breeding facilities that became the heart of the program producing the data on which genetic improvement is based. The second feature of the program is optimal biosecurity to keep all the birds free from diseases. Hendrix Genetics have a large gene pool and the safety of these unique lines is paramount to keeping the ability to create products for customers as the commercial production systems change over time. The gene pool was expanded substantially when DeKalb was purchased in 2000. DeKalb’s gene pool included lines from Warren, Dryden and Kimber; just prior to the sale to Hendrix DeKalb was producing 13 different commercial products. All the lines were copied and brought to the Stevensbeek farm which was emptied to accommodate all the DeKalb gene pool. This allowed the lines to be monitored for a few generations for “genetic quality”, to examine the birds for the incidence of disease problems such as leucosis, salmonella and mycoplasma. Now the breeding values of all lines are estimated using the BLUP system. All the main facilities were set up to measure feed intake so that FCR testing is conducted on all lines. All the main commercial lines are included in a broad recurrent selection test program. The males are tested on all the main lines and for the most important lines a reciprocal recurrent test is carried out. The tests are replicated in three countries – The Netherlands, Guatemala and Canada. In 2003 there were approximately 250,000 recurrent test birds in the field. Another important element of the breeding program is to recognise the several types of customers who are involved in the distribution and production chain. The delicate balance is maintained between the final product and the parent stocks traits. Very early in the set up of breeding program quite a lot of emphasis and selection pressure was placed on parent stock traits, because the hatcheries and parent stock farms are the first customers. There was recognition that a good performance was required in RST in order to sell the birds, so improvement of traits of the commercial hen must keep pace with the competition. An equally important philosophy is that a balanced selection is maintained over the different traits and that any improvements are gradual, so that at each replacement of stock there are “No surprises for the customers”. For instance if there is a need to change egg size in one product it is changed gradually so that other traits are not adversely affected. There is an ever present possibility that pushing a trait in a desired direction might produce change in an undesirable direction in one or more other traits to the overall detriment of the final product. There are several pure lines farms in which all the houses are equipped with the so-called Filtered Air Positive Pressure system as part of the maintenance of biosecurity; the farms are also completely enclosed by fences and have a service room for staff. Every 14 days all the houses for pure lines and grandparents are checked for all the important diseases. There is an egg research laboratory where the quality (shell strength, shell colour, albumen quality, inclusions) of the eggs of all hens are tested. An initial selection of the best families is based on laying house performance and egg quality. Hatching eggs are produced and the resultant chicks are grown as pure line replacements and grandparents. At 16 weeks the final selection is based on the BLUP and other information. The accuracy of the breeding value estimates is steadily improving particularly in the low h2 traits. This has enabled selection decisions to be made earlier and the generation interval is decreased as a consequence. The best families go to the laying houses and the rest go to GPs farms. One of the farms containing the gene pool lines is used more as a test farm to anticipate other regulations such as not debeaking, alternative housing and questions about vaccination programs. 2 The breeding program applies to all the layer products in Hendrix Genetics (Bovans, Euribrid and DeKalb) at the time (2003) that the main bulk of the information was gathered for this historical story. 24 The other crucial factor to work with is time; the time taken for genetic progress to reach the commercial level. There is always a three year lead time; products are produced in the anticipation of what will be required in three to four years across a range of markets. There are two components in the breeding program. One is the pure line information under ideal circumstances on the pure line farms and the other is the recurrent test information and reciprocal recurrent test information from the field. The latter is the crossbred performance under field conditions from which heterosis is also measured. These tests also include experimental crosses. Besides the experimental lines those of the competition are measured. Competitors cooperate in these tests. The locations of hatching eggs of specific crosses of the competitor’s stocks are provided so the right hatching eggs are obtained. The selection environment for the pure lines is housing in single cages, but in the recurrent tests multibird cages (five or six) are used to make performance reflect the commercial environment. Within a test country (Guatemala, Canada, W. Europe) the housing environment and feed quality is different. The big white egg markets of Brazil, Japan and the U.S. use corn-soya feeds whereas in Europe a lot of by-products are used so it is important that the recurrent tests are tested on different feeds. In the pure line farms it is important to keep the flocks disease free. But in the recurrent tests there is disease pressure and that is important for the selection for robustness and disease resistance. In the recurrent tests males are combined with C and D females and produce approximately 100 crossbred offspring. After rearing, all the half-sibs are housed in multi-bird cages (five or six). All the data is collected on a cage basis and a lot of repeats are needed to increase the repeatability to make the data more accurate. The main production traits under selection are egg numbers,liveability, sexual maturity, feed conversion and laying persistency. A lot of emphasis is placed on persistency because currently hens are more or less at optimum age of sexual maturity and there are very limited further genetic gains in peak production. In egg size the main emphasis is on early egg size and not to large at the end of lay The main thrust is to improve feed conversion by increasing egg mass output rather than decreasing feed intake. Thus feed intake is monitored to ensure hens eat enough. Pure line hens have individual feed containers with enough feed for eight or nine days at which time it is weighed, emptied and refilled. The feed intake measurement starts at the moment that it is not affected by sexual maturity. Body weight is important in relation to feed conversion and is also correlated with egg size. In some markets the spent hen is of value. For instance in South America where the value is about US$2 it is very critical to have an end of lay body weight around 2.0kg. Because the Nera is coming close to a dual purpose hen, the right body size is important. Egg quality. For every hen in the pure lines egg numbers during the complete laying cycle are recorded using hand held computers. Eggs are weighed regularly over the laying cycle and quality tests are carried out on these eggs: shell colour in the brown lines (the West European and Asian markets like dark shells with good uniformity), shell strength, Haugh Units (albumen quality is particularly important in those products that are marketed in Japan), blood and meat spots. Egg quality is also measured in the recurrent tests. Reproduction. All families are hatched individually so fertility and hatchability data is monitored continuously. Similar data is available for the males in the Rec.test program . 25 Promising areas in biotechnology are researched at Nutreco labotory (and collaborating University departments) where common developments can be progressed. Mr Gerard Albers, head of Breeding Research, coordinates the work for all the groups: layers, broilers, pigs, turkeys, and salmon, The products of the competitors are tested with the company products in-house. The RST are useful as long all the main competitors enter providing an independent estimate of relative performance. The Bovans, DeKalb and Hisex products are entered in all current RST including those that are on alternative systems. Many customers may have the resources to conduct in-house assessments of competing products, performances in their unique environment is the most valuable. For many customers the RST can act as a useful guide to potential new products, prior to conducting an in-house test. DNA-markers and related technology are used for three purposes: 1 evaluating lines by their fingerprints to determine how close they are genetically and that is used to make certain combinations. 2 to use the DNA profile to control the pedigree. 3 to explore different aspects of physiology in e.g. ascites tests, robustness and disease resistance. However in the day-to-day selection it is not yet used intensively as a selection tool. All of the R&D information is combined with the computer generated performance and breeding value information and the geneticist makes the final decisions. TOP Products-Broilers Hybro The Hybro Logo In 1955, independent of the breeding team at Hy-Line, after a very large investment and years of hard work on the original farm in Lanaken, the Belgium team created a broiler that initially was a cross between brown single cross hens and English Sussex roosters. The second version launched in 1956 as the first hybrid broiler was derived from four synthetic lines from stock of various origins including the American White Cornish and White Plymouth Rock. The first sales were parent stock in 1957 to Belgium. These produced a white feathered, white skinned broiler. At the outset the Hybro tended towards a heavy weight layer with outstanding hatchability, livability and FCR. Euribrid sister companies controlled distribution in seven European countries and the remainder were administrated either by joint companies or by exclusive franchise holders. While that degree of involvement with marketing is expensive for a breeder it ensured that control over quality, reproduction and distribution was maintained. Sexing 26 The Hybro geneticists set out before anyone else to sex broilers at day-old with the view to rearing them separately. Initially sexing was by early and late feathering genes and was prompted by the fact that Dutch packers offered premiums for sexed broiler day-olds. It was fairly common in The Netherlands for male broilers to be sent to the processing station a week before the females, thus securing higher and more even grading. This system gave growers considerable savings at no extra cost to themselves. Feather sexing was introduced in 1966. A compromise feeding programme is necessary in "as hatched” growing. Whereas with separate sexes specific rations can be formulated and real economies achieved because (in the 60’s) females could be changed to a cheaper finishing ration at three to four weeks, whereas males should not be changed until four to five weeks. It also meant that the grower could clear the entire female flock ahead of the males because their feed conversion efficiency drops after eight weeks. Sexed growing also meant a closer uniformity of weights. female !!!! male Sexing the Hybro broiler. The primary flight feathers in the male are almost twice as long as the secondary coverts (Reproduced with permission Poultry World) Later a trait was fixed that gave males a superficial gold down around their heads, while the rest of the down was white. Whether this was successful or not at the commercial level has not been documented. As the breeding progressed the stock were taken to Milheeze 25km from Boxmeer. Milheeze was established in 1956 after permission had been granted to import stock from Belgium under strict quarantine regulations. The female lines were established at Milheeze with the White skin males lines kept in Lanaken and the Yellow skin parents were bred at Boxmeer. Market Share The effectiveness of the product and the distribution was to see the Hybro achieve a market share in Continental Europe of 24% in 1964, 30% in 1967 and 33% in 1968. Initially the main markets outside The Netherlands were Belgium, France, Germany, Spain and Italy where the main product was parent stock. A Hybro Mini was developed for the French market. In Eastern Europe important countries were Poland, Czechoslovakia, Bulgaria and the Soviet Union. The USSR, DDR and Bulgaria took delivery of stock and every five years or so made a request for more. In the USSR the business started in 1967 and later purchased pure lines. Not necessarily the best lines were delivered but out of 30 or so lines held by Hybro, four lines that could be regarded as A, B, C and D, were delivered. With each delivery Euribrid also had meetings or colloquia in Boxmeer or Moscow. In Bulgaria the deliveries were on a smaller scale and replacements were often only just one line. Hybro maintained a 30 to 33% market share in the early 70’s. At that time sales of their parent stock were six to seven million/ year in Europe. 27 Hybro parent stock of the 1960’s (Courtesy of Hendrix Genetics) A Hybro broiler in the 1990’s (Courtesy of Hendrix Genetics) Male and female Hybro parents of the 1990’s (Courtesy of Hendrix Genetics) In South Africa Hybro mainly sold to Rainbow Farms, which were as Grandparents, from 1972 to 1982. In the 70’s Korea, Japan and Philippines in the Far East, and the Middle East countries mostly purchased Parent stock. However, in Arbil region of Iraq for instance, Grandparent stock was purchased. The USA Market Hybro had wanted to be in the USA market for some time and realised this by purchasing Pilch from DeKalb in 1973; although some Hybro grandparents were in Oregon in the early 70s these were not used to produce parents for the USA market. The breeding program of Pilch was based in Iowa. The Pilch product had a slightly less productive breeder and a faster growing broiler, and although all lines were available to be utilized none were swapped between the two breeding programmes. The breeding 28 programmes maintained and improved the distinction between the Pilch and Hybro products. Pilch had been in The Netherlands from about 1963 with parent stock with certain broiler integration companies, yet not in competition with Hybro. Pilch continued its operations in the USA for another 20 years finally closing in 1993. The facilities at Troutman were leased to an integrated broiler company in North Carolina, some of the staff joining the integration. Euribrid management had decided to withdraw the Pilch product from the U.S. market because it was not entirely suited to U.S. conditions and management. New product development and testing was underway in the Netherlands and a return to the U.S. market was planned when the company had a product that was suited to the needs of the U.S. industry. Pilch customers in The Netherlands were supplied for a short time using Grandparent stock. Global Distribution By 1965 Hybro had an impressive list of distributing companies across the globe: Authorised HYBRO Distributors (Poultry International, 1965) Europe Austria Belgium France GB and Ireland Germany Greece The Netherlands Italy Spain Sweden Switzerland Africa Ghana Kenya Rhodesia Togo North America Middle East Iran Iraq Lebanon Turkey Asia Ceylon Japan Okinawa Philippines Republic of China (Taiwan) Hybrid Beratungsdienst Urlaubskreuzstrasse No. 192 Maria-Enzersdorf, NiederOesterreich Hybro Belgium Schoonhovenbos 10 Aarschot, Belgium Hybro France 92, Rue des Resistants Armentieres (Nord), France Hy-Bred Poultry, Ltd. Hyfield, Chester High Road Neston, Wirral, Cheshire, England Hybro Deutschland, Deutsche Geflugel-Hochzucht G.m.b.H, Postfach 205, 455 Hesepe Post Bramsche, Germany Mr. Takis Georgasopoulos 13, Ippokratous Street Athens, Greece Hybro, The Netherlands P. O. Box 30 Boxmeer, The Netherlands Euribrid S.p.A. Via Zamboni, 9 Bologna, Italy Granja Minaya, S. A. , Carretera del Pinar (la Rubia) Apartado 205 Valladolid, Spain Hybro Scandinavia P. O. Box 33 Viken, Sweden Hybrida AG, Schijpfheim, Luzern, Switzerland Ghana State Farms Corporation P. O. Box 2309, Accra, Ghana Mr A. J. Winmill, Ministry of Agriculture, Dept. of Veterinary Service, P. O. Kabete, Kenya Mr. Charles Stewart Alexandra Avenue P. O. Box 69 Hartley, Rhodesia St. Anthony Poultry Farm, Box 90, Lome, Republic of Togo Wallace Chicks Inc, PO Box 20004, St. Petersburg, Florida 33702, U.S.A. Baby Cock, Avenue Shanaz Janbe Banke Melli Foroshgahe Jojeh Khorooss, Tehran, Iran Mr. S. Shadid Al-Whatba Street, P. O.Box 203 Baghdad, Irak Mr. Fouad Salaam, P.O. Box 3617 Beirut, Lebanon Mr. A. N. Katircioglu, Resadiye Caddesi No. 18, Eskisehir, Turkey Three Acre Farms, Ltd. 2 Kotelawala Gardens Colombo, 4, Ceylon Hy-Deo & Company, Ltd. Likura Building 11, 1-chome 5, Higashi Azabu, Minatoku, Tokyo, Japan East Asia Breeding Stock Co., 588, Arakawa-baru Aza Arakawa, Haebaru-son, Okinawa (Ryukyu Islands) Winmar Poultry Farm, Inc. R-501 Paramount Building Rosario St., P. O. Box 749 Manila,Philippines Tung Ying Industrial Co., Ltd., H 42 Sec 1, Ti Hwa Street Taipei, Taiwan In 1969 Euribrid started a subsidiary in Dozwill, Switzerland, for the distribution of Hybro stock under the management of Franciscus X. Furrer. This subsidiary took over from Hybrida A. G. 29 In the UK, Euribrid Ltd. was a change of company name from HyBred Poultry Ltd, based at Neston on the Wirral Peninsula. Although a small farm over 90 per cent of Euribrid's UK output was directed through production centres in Ireland. Grandparent stock were at Hi-Lay Holdings Ltd., at Dundalk, Eire. From these sources hatching eggs were imported in to Neston which were then redistributed by road, while some deliveries went direct to Aberdeen, for instance, which could only take eggs supplied from Ireland, since at that time all poultry movements into Scotland were prohibited for biosecurity reasons. Further back in the supply chain, contract farmers played an important part in Euribrid's method of obtaining hatching eggs. This was particularly true in Northern Ireland, where in 1969, 30 and 40 farmers were involved in this way, with less than 10 in England. The reason for the popularity of Ireland was its comparatively disease-free status gave breeders a chance to sell stock into any other part of Britain and, if required, other European countries with no fear of quarantine regulation "reprisals". However there were higher feed costs than in England, and a high quarantine charge imposed by the Ministry of Agriculture, but these costs did not outweigh the advantage of low disease incidence. Breeding Programme Customers always had a choice of white or yellow skin broilers and a mini, although the mini was phased out when a significant share of the French market was not realised. The Hybro selection team always focused on a balanced bird and customers were able to request faster progress in the development of the broiler traits or breeder traits. This segmentation occurred in the late 1980’s and in time to the named separate products. Initially all the normal size products were from parents with very high chick production and this was eventually called the Hybro N (feather sexable), where the emphasis was on breeder performance for the middle of the road customers. Field results covering 60 flocks of Hybro N showed an average peak production of 83%, with 88% peak hatchability. High production coupled with low feed consumption was the key to Hybro N's high return on investment. The progress in seven week body weight from 1985 to 1990 was 2.0 to 2.3kg, with FCR improving from 2.03 to 1.94. The Hybro G (non-feather sexable) was developed for the meat yield segment market with breeders achieving an acceptable performance. The trend towards valuable parts continued. Further processors were especially in the market for prime parts. Hybro put great emphasis on broiler characteristics to achieve a maximum yield for every link in the food chain. This meant an increase in the percentage of prime parts but also on the quality of the meat. Another development was the separate feeding of breeder males leading to improved fertility. More attention was given to disease prevention and resistance, e.g. by analysis of the MHC-complex, underlining the quality of the breeders and broilers. Euribrid recognized that the changes in demand and narrow margins left little room for 'moderate' or 'good'; only 'excellent' paid off. Weighing broilers (Courtesy of Hendrix Genetics) By 2000 more divergence had taken place with the Hybro BG, Hybro BN, and Hybro G being marketed. Where the BN focused on breeder performance, with a very good broiler, BG gave a faster growing broiler where the main criteria were the performance of the broiler breeder package including the broiler growth rate. The Hybro G was the same brand of the early 90’s which focused on the bottom line 30 performance, mostly on FCR to reduce feed cost and breast meat yield to increase the output for further processing in completely integrated companies. To develop the G brand, the company undertook extensive carcass evaluation. Agreements with processors were set up to do the cut-up work. All the pure lines and various line combinations were evaluated. Final products of the competitors that were available in The Netherlands were purchased to undergo carcass evaluation. The Mini (yellow skin) was strictly for the French market. The Mini did not take off world-wide. Although ISA marketed the Vedete as the broiler breeder of the future no other countries followed. So because the French market was too small to have a breeding program devoted to a mini it was stopped. At the outset Hybro was bred for physical strength and performance. With a female parent that produced so many eggs, the Hybro selection programme had a head start to obtain improvements in broiler performance. Hybro, like many of its competitors, was bred for the slaughter house traits, meat percentage and yield, and the growing house performance, growth rate, feed conversion and livability. Feed costs, all of which vary widely from country to country, were and still are the largest single cost in broiler production. On average, in the 60’s, it accounted for about 70% of all costs. Although feed costs were important growth rate was also crucial. It was recognized from the beginning of the breeding program that the fewer days that it takes a broiler to reach its specified weight, the shorter the feeding time and efficiency would improve. And finally regardless of the feed conversion efficiency and cost of feed, if a bird is culled because of leg weakness before it reaches slaughter weight feed efficiency decreases. This has a larger effect in the latter half of the growing period when the majority of the feed costs have already been incurred. The costs of a breeding program rise when a full selection program is under way. Initially a total of 300,000 birds were being used in basic breeding research. The cost of putting a male in pedigree pens in 1968 was put at £100 by Dr van Hedel. At Milheez, about 40 lines were maintained of which four were used for the commercial product. From the four lines 1,000 of each sex were hatched every week and selection began at eight weeks, when it was mainly concerned with growth rate. The numbers were reduced to 200 females and 50 males and were retained until 10 months of age when selection for breeding potential reduced the numbers to seven pens of 14 birds with a male in each pen. To simplify record keeping the females were held in individual cages until the final selection for the breeding pen stage was made. Thus selection improved growth rate and breeding characteristics at the same time. Artificial insemination of Hybro females (Courtesy of Hendrix Genetics) The "small' line was from a recessive dwarf mutation that occurred, reducing bodyweight by one-third and became the female line of the mini. Egg weight was similar to the normal Hybro but there was a considerable reduction in food consumption and in the final product a normal-size Hybro parent male masked the dwarf gene thus producing a normal broiler chick. Thirty years after its introduction the Hybro broiler traits (feed conversion and high percentage of valuable parts) still had highest priority. This resulted in an improvement of the live weight from 2kg by 49 days with a FCR 2.03 in 1985 to 2.3 kg and 1.94 FCR in 1990. Newly added selection traits, such as a strong skeletal frame and resistance against specific diseases were in this group of characteristics. 31 Breeding a better breeder was important where the cost price of day old broilers is of primary importance. Separate feeding during the laying period in the first place enabled Euribrid to breed heavier males without hurting hatching results. It also activated the market for Hybro mini where separate male feeding is necessary. Hyla Rabbits3 The rabbit breeding program was in France where the market for rabbit breeders was larger than the rest of Europe combined. The idea was to follow the broiler pattern- selling parent stock around the country. A French geneticist was appointed to conduct the breeding program starting in 1968.The rabbit breeding industry was well organized but not industrialized. Industrialization in the rabbit industry was much slower than the experience with broiler. This breeding program continued for five years and then stopped because of the slowness of industrial development program. Turkeys In the late 70’s Euribrid took over the Coolen Turkey Breeding program (INDICO). When Jan Sallevelt joined Euribrid one of his first activities was the Coolen turkey program and marketing of the Hydon was continued. About one year later Euribrid acquired Hybrid Turkeys of Canada and all the Coolen genetic material was transferred. The history of Hybrid Turkeys of Canada is covered elsewhere in this historical series. TOP Marketing Reproduced with permission of Hendrix Genetics The two images above were used in a Poultry Industry advertisement in 1970 at the time when the Hisex White was introduced. The image of the White, a sort of cardboard cut-out, was a puzzle when on the same page in the advertisement an artwork of a Brown’s head is shown. 3 Rabbits were always considered a part of a poulterer’s (one who deals in dead fowls and game) products and are included here in the Euribrid story; however the Hypor products are excluded from this part of the Euribrid story for this reason. 32 Reproduced with permission of Hendrix Genetics In November 1970 the company ran an advertisement in Poultry International outlining their marketing plan for all their products -Hybro, Hisex and Hy-Line- featuring the fingerprint chick shown above, which seems to imply that the products and services offered were as unique as a fingerprint. It was more than 10 years before DNA fingerprinting was first used as a term in genetic research. One of the main strategies in marketing was that Euribrid claimed that customers purchased results and research: “Euribrid, with headquarters in the Netherlands, is one of the largest animal breeding organizations in the world, a thoroughly marketing-minded organization. That means that chicks and eggs and (soon) hybrid pigs are only part of the total product you buy. Euribrid feels responsible for your results and provides, therefore, the benefit of their extensive research. They give the advice and the service that will enable you to get maximum profit from the various Euribrid lines, such as Hybro broiler breeding stock, Hisex hybrid birds producing brown eggs and, for most of Europe, Hy-Line white egg layers.” (Poultry International November 1970). In a 1971 Poultry Industry advertisement Euribrid set out to emphasize the cooperation they had with their franchise hatcheries throughout the world: Your Hisex hatchery works very closely with Euribrid, Europe's largest poultry breeding organisation, so not only are you assured of better products you also get exceptional technical service and product information. In addition to the extensive use made of scientific research within their own organisation, Euribrid also co-operate and have built up a very close relationship with laboratories, breeding organisations and scientific institutes in all parts of the world. These worldwide contacts ensure continuous application to new ideas and developments. The co-operation of Euribrid with Associated Hatcheries offers you, the egg producer, the guarantee of greatest possible security in buying day old chicks and growing pullets. Nothing is left to chance for in today’s market conditions attention to detail is vital. Customers using Euribrid products obtain the best economic results with the help of sound practical advice and service. Scientific research and service have earned Euribrid and their Associate Hatcheries the reputation of being the most progressive and reliable breeding organisation in Western Europe. Over many years Euribrid products have earned a worldwide reputation. Hisex layers are distributed all over the world through Associated but independent hatcheries. Euribrid maintain their own basic breeding farms and have national sales organisations in most Western European countries including Belgium, England, France, Germany, The Netherlands, Ireland, Italy, Sweden and Switzerland. All of this marketing was aimed at giving confidence to existing Hy-Line and new customers that they would receive of support for the Hisex products based on a very professional and competent team. Euribrid had a huge investment in the new layer products and wanted to achieve an instant market penetration in what was a very competitive market. Euribrid set out to gain a foothold in the British market with a series of advertisements in poultry magazines during 1970 and 1971 to highlight the capability of the Hisex White and the improved Hisex Brown. Euribrid took on the mantle of the largest breeder in Europe in this marketing drive. The fact that the Hisex Brown was the brown egg winner at the Gosford Laying Trials 1969/70 was very fortunate for this marketing campaign. The main focus of the advertisements was the superiority of profit margins 33 expected from Hisex layers. The Hisex White would achieve the lowest practical cost per kg of eggs and “the efficient, profit-minded poultry farmer keeps records and will, therefore, keep hisex white layers.” And “Because of their outstanding egg production, their eggs of supreme quality and of just the size egg buyers demand, their excellent growing and laying house livability and their strong resistance to adverse conditions, hisex white layers offer, totally, more profit.” The company claimed that the bird “adapted itself to almost every environment and was an exceptionally easy bird to manage. Low mortality and extreme docility had been bred into the Hisex white. Many years of wide-scale testing had proved that the bird laid plenty of quality white eggs for current grading standards and ensured excellent live-ability in the rearing and laying stages.” Euribrid took advantage of the swing to brown eggs in the timing of the launch of the Hisex Brown in the UK. This ensured early recognition and a ready market. Introduction into the U.S. was given a boost when the Hisex White performed very well in the RST in which it was entered. At the 1975 Atlanta Show the Hisex White had just won the Missouri RST. The purchase of Pilch Inc. from DeKalb was a calculated aim to get a distribution network for the layers; Pilch having a widespread network as one of the most successful broiler breeders in the early 70’s. In the late 60’s Pilch had the dominant share (around 40%) of the U.S. parent stock market. Many large layer operations were pleased with the initial results they achieved with the Hisex White. For instance Gold Kist, an agricultural cooperative, in the SE USA, that was progressively increased its poultry operations in the 70’s said “ Hisex laid so well we're reordering, our Hisex birds peaked high, too. They're calm and easy to manage. Their livability's good. We're well pleased Hisex is winning Random Samples against the world's best competition. We're proud of these results. They show just how good Hisex is in all the profit characteristics.” (Poultry Digest, May 1976) Marketing continued in 1976 with Euribrid making the claim that the Hisex “may be the world's most versatile layer! Hisex hits 50% production sooner than any other layer you can buy, peaks higher, and keeps laying with contest-winning persistency. Hisex converts feed with the efficiency you need to beat the high cost of grain. And those Hisex shells! They'll be as important to you as Hisex hatchability is to your Hisex distributor! Isn't it time you tried something new, something better for your business? Like your first flock of Hisex, the high profit layer from The Netherlands. Euribrid's Hisex is now available in the United States and Canada through fully qualified and service-proven distributors.” The latter statement was consistent with the business philosophy of Hendrix by providing a good quality product and a support service. In the UK in 1976 the focus of marketing was on quality: the quality of the layer and the quality of the organisation behind it. And this continued to be the focus through the next decade. In the 80s Euribrid continued to emphasize egg quality claiming to be the market leader. Achieving an egg weight that is optimum for different markets around the world is difficult with one product. Some breeders have offered a number of strains with different egg weight profiles. Euribrid however offered just one white and one brown product with what they claimed, in the brown eggs at least, to be the ideal average egg weight class: 60 to 65g. Emphasis was always placed on the steady increase in productive output, increasing feed efficiency and good livability so that the Hisex Brown was in many cases, producing brown eggs at a cost price lower than those of many White flocks. In order to keep in front of this development a complete new egg quality research laboratory became operational in 1978 at the basic breeding farm in Venhorst. Additional investment of a new basic breeding farm at Herveld in 1986 reflected a commitment to white egg production. The new farm was a fully computerised centre for research and development for the Hisex White. Constant investment in the breeding facilities enabled them to work close to the market. In 1989 the company claimed that their investment in breeding facilities around Euribrid's headquarters reflected a close involvement with the market. They recognised consumer demand for a good quality product was forcing animal breeders to place more emphasis on quality. As producers of basic breeding material, they recognized this development at an early stage and adapted their breeding programme accordingly. Hisex they said had created a White layer with a high general resistance a guarantee for top 34 results under all kind of climate conditions. In the European market in the late 80’s with its oversupply, an excellent internal and external egg quality was a must. In 1998 when Hendrix merged their egg breeding activities with Euribrid the philosophy for marketing was: leading in breeding and meeting the demand. Consumers were showing increasing discrimination. They wanted safe eggs, tasty, uniform and cheap. Hisex was, they said, perfectly positioned to give the global market what it wanted. Hendrix had two of the world's best known layer breeds - Bovans and Hisex. Hendrix worked on the strengths of the two breeds. They were known around the world for their outstanding qualities as egg layers, each with its own special strengths. Bringing these two breeding companies together meant additional benefits for egg producers. Each breeding program was going to focus more strongly on its own special strengths to produce layers that fulfilled the needs of the specific market segments. The combination of the two breeders produced one of the largest R & D programs in the industry, focused on increasing the profitability of egg production. Hendrix was then a 50% Nutrecocompany which had more than 60 years of experience in poultry nutrition and live-stock management. TOP Franchises Example of the development of a franchise: the early days of Euribrid in the UK The Hisex White was introduced into the UK in October 1970 through Euribrid Ltd, formerly HyBred Poultry Ltd. The company was managed by Jim Colvin from a base in Ireland. The UK headquarters at Neston near Liverpool was a set of offices, a hatchery and three 6,500-bird houses. Over 90 per cent of Euribrid's UK output was directed through production centres in Ireland. Grandparent laying stocks were kept at Comber, in Northern Ireland, while the broiler breeders were with Hi-Lay Holdings Ltd., at Dundalk, Eire. Some of the hatching eggs from Hybro and Hisex went to the Neston hatchery while others went direct from Ireland to the hatcheries of Aberdeenshire Hatcheries, Aberdeen; Blue Barns Poultry Farm Ltd., Co. Durham; Fred Horner (Hatcheries) Ltd., York; Feltons (Poultry Farms) Ltd., in Suffolk; Ewart Hebditch Ltd., in Somerset; and, some to the Fountain Hatcheries in Co. Antrim, Northern Ireland. The hatcheries supplied parent farms operated by contract farmers. Ireland had a comparatively disease-free status giving breeders a chance to sell stock into any other part of Britain and, if required, to other European countries without a quarantine hindrance. There were at the time higher feed costs in Ireland and a high quarantine charge imposed by the Irish Ministry of Agriculture, but these factors did not offset the advantage of low disease incidence. Several of these hatcheries originally sold Hy-Line pullets, but in September 1970 Euribrid announced that they were ceasing to co-operate with Hy-Line Poultry Farms, USA, and although the company retained the right to sell Hy-Line birds for two more years. The Hisex Brown, newly introduced into the U.K. in 1969, was the best brown egg layer in the 1969/70 Gosford Laying Trials with a hen day production level of 250.6 eggs, a feed intake of 130g/day, a 6.5 per cent mortality, and a final carcase weight of 2.37kg. When the brown egg bonus was added it was second overall, just 5p behind the white egg winner. This was an important result in the early 70’s when the white and brown egg birds were still competing evenly for sales. The franchise agreement was to start immediately with import of grandparents to sell throughout the U.K. and Eire. The strong brown and white lines further strengthened Anglian's egg interests. Signatories to the deal, for the share capital of which they paid £170000, were Mr. E. J. Hendrix, chairman of Hendrix N.V., Euribrid's holding company, Mr. A. Edwards, managing director of Anglian, Mr. R. W. Hill, chairman of Joice & Hill and Mr. J. Colvin, managing director of Euribrid Ltd. TOP Appendix A brief history of Nutreco 35 The oldest Nutreco company, Skretting, was established in 1899 in Norway as an agricultural merchant and moved into the production of fish feeds in 1963. In The Netherlands agricultural merchant Hendrix was founded in the 1930’s supplying animal feeds. The company added poultry breeding and processing introducing the Hendrix and Pingo names. Trouw was also established in the 1930’s and, in the 1950’s, developed the first of its successful premixes and specialties including feeds for fish. In the 1970’s BP Nutrition bought these companies together with others such as Nanta and Sada in Spain and MooreClark in Canada. Trouw Chile began providing fish feed in 1981 and Mares Australes, now part of Marine Harvest began fish farming. Mares Australes and Marine Harvest McConnell were merged in 1999. Marine Harvest McConnell also had fish farming activities in Scotland. These were augmented in 2000 through the acquisition of the farming and processing of Hydro Seafood in Norway Ireland and France. Nutreco was formed in 1994 as a management buyout, backed by institutional investors. Further acquisitions in Chile, Scotland and Australia underlined the company’s strategy of a balanced and interrelated structure. Since 2001 the purchase of Agrovic, a vertically integrated poultry producer in Spain, and of Ham Holding and of the meat processing facilities of Laurus in the Benelux, have further strengthened the influence of Nutreco in the poultry and pork value chains. The acquisition in 2001 of the premix activities of Ducoa established a presence in the United States. In 2004 Nutreco decided to further develop in animal nutrition and fishfeed. It was decided that Marine Harvest (merged with StoltNielsen, subsequently sold to John Fredriksen, who merged Marine Harvest with Pan Fish and Fjord) Pingo, Hendrix Meat and Euribrid (animal breeding) will be developed to industry leaders outside Nutreco. Pingo was combined with Plukon. Hendrix Meat became part of Vion. Nutreco decided to combine Euribrid with Hendrix Genetics, thus creating a global leader in animal breeding. The strategy of Nutreco today: “Nutreco is a global leader in animal nutrition and fish feed. Advanced feed solutions are at the origin of food for millions of consumers worldwide. Quality, innovation and sustainability are guiding principles, embedded in the Nutreco culture from research and raw material procurement to products and services for agriculture and aquaculture. Experience across 100 years brings Nutreco a rich heritage of knowledge and experience for building its future. Nutreco employs almost 9,300 people in 30 countries, with sales in 80 countries. Nutreco is listed on the Euronext stock exchange in Amsterdam and with annual revenues of EUR 4.9 billion in 2008.” Bibliography and Resources Anon (1954) “Have American poultrykeepers anything to teach us? Thornber’s Annual 1954 p 21-24. Anon (1971) The Hisex Brown Report. A ‘Poultry Testing’ Assessment, Poultry Testing, July. Anon (1975) 1974 Report of Random Sample Egg Production Tests, United States and Canada. ARS, U.S. Department of Agriculture. Anon (1977) 1976 Report of Random Sample Egg Production Tests, United States and Canada. ARS, U.S. Department of Agriculture. Anon (1979) 1978 Report of Random Sample Egg Production Tests, United States and Canada. ARS, U.S. Department of Agriculture. Blasing, J.F.E. (1986) Op het spoor van de Körver. Onstaan, groei en transformaties van de Brabantse familieonderneming Hendrix'Fabrieken 1979/1930 Bedrijfsgeschiedkundig bekeken Leiden, Nijhoff, 1986. 396 pp Harrison, John (1998) personal communication, former production manager of Thornbers. Working Group 3 (1981) Combined summary of European Random Sample Egg Production Tests 1978. World’s Poultry Science Journal 37:218-221 36 Working Group 3 (1986) Combined summary of European Random Sample Egg Production Tests 198184. World’s Poultry Science Journal 42:276-285 Working Group 3 (1989) Combined summary of European Random Sample Egg Production Tests 198586. World’s Poultry Science Journal 45: 189-192. Working Group 3 (1994) Combined summary of European Random Sample Egg Production Tests 199192. World’s Poultry Science Journal 50:187-189 Working Group 3 (1997) Combined summary of European Random Sample Egg Production Tests 199596. World’s Poultry Science Journal 53:291-296 Working Group 3 (1999) Combined summary of European Random Sample Egg Production Tests 1997/98. World’s Poultry Science Journal 55: 204-205 Web sites Euribrid, “Leading in breeding”. http://www.euribrid.com/hybrosl.htmSnews 13/08/1999 Euribrid, “Leading in breeding”. http://www.euribrid.com/hisexsl.htm#philosophy 13/08/1999 Euribrid, “Leading in breeding”. http://www.euribrid.com/hybrosl.htm#news 13/08/1999 Nutreco, “Nutreco completes deal with Hendrix Poultry Breeders” http://www.nutreco.com/ .../press_releases 1/10/98. Industry Magazines. Poultry Industry 1970, December. Adding spice to the competition. 1971, May. Euribrid lays a firm foundation. 1971, December/January. A European breeding company. Poultry International 1965, October. Authorized Hybro distributors. 1973, May. Euribrid buys Pilch. 1993, September. Euribrid closing US Pilch genetics operations. Poultry World 1966, September. Euribrid, The Netherlands, their stake in broiler business. 1966, September. Sexing the Hybro. 1968, December. Attention! Integrator at work. 1968, December. Broiler breeders international. 1993, November. Hybro – something to spare. World Poultry 1988, January. Euribrid’s brown layer shows gains. 1989, January. Euribrid take in quality. Zootechnica International 1994, July. Euribrid continues to lead. Euribrid Publications. Eijnden, G. van den (1974) International developments in the breeding world; an overview of the most important competitors of the broiler and laying sectors. Euribrid internal paper, 12th April. 1990’s. Corporate marketing brochure 1995. Newsletter: Direct and Indirect selection. 1999, April. Newsletter, hybro contact: Herveld officially opened. 37 Interviews Frans van Sambeek at Hendrix Poultry Breeders HQ, 31/3/2003 Arian Groot at Hendrix Poultry Breeders HQ, 1/04/2003. Ad van Hedel at Hendrix Poultry Breeders HQ, 1/04/2003. Ir Heibour at Hendrix Poultry Breeders HQ, 31/03/2003 J.H. (Koos) Middelkoop at the Research Institute for Animal Husbandry, Lelystat. 24/03/2003 Translations The translation of sections of the book “Op het spoor van de Körver” and the van den Eijnden (1974) Euribrid internal paper by Mrs. Toos Grootscholten is gratefully acknowledged. ©Copyright Kingsley Smith 2011 38