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No bull: Local company in process of expansion

R.C. AgriGenetics houses stud bulls, doing well as milk demand increases

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By Elaine Morris Roberts, Staff Writer 8:51 PM Saturday, June 13, 2009

SPRINGFIELD — Jance, a 7-year-old Holstein bull, has what every male wants — his very own stud code.

Jance and other stud bulls — animals specifically kept for breeding purposes — are either temporarily or permanently housed at R.C. AgriGenetics, a custom semen collection company at 5001 E. County Line Road.

R.C. AgriGenetics, a Bloomville-based custom collection company, recently purchased Springfield-based Genetic Connection for $1.3 million, according to President Roger Clark.

The 143-acre farm has four barns that can house up to 100 bulls at a time; about 70 acres are used to produce between one-half and three-quarters of the hay needed to feed the bulls throughout the year.

Clark purchased the operation with the intention of expanding the services and employment rolls.

Custom semen collection and shipping services — including fertility checks — are available and the firm works with a sister company to provide embryo transfer.

Clark is planning to expand housing facilities, build a barn to bring embryo services on-site and branch out to service other animals, including goats and sheep.

“I think (embryo) services will be available here in Clark County within a year,” Clark said.

The company will invest at least $75,000 in a barn up for those services.

The company’s six employees, including co-managers Ron and Kyla DeOrnellas, will remain and as business grows, staff will increase, Clark said.

Lots of bull

Various breeds of bulls including Brahma, Texas Longhorn, Holstein and Professional Bull Riders Bucking — or PBR, the bulls used in rodeos — have all visited the Springfield facility.

The company itself owns no bulls.

“Some bulls will be here for three to four weeks, but others will stay for years or as long as they are viable, both for collection and with regard to their overall health,” Ron DeOrnellas said.

Jance has been there for about two years.

“I expect he’ll be here as long as he’s viable. The milk that comes from his offspring is very high quality,” Ron DeOrnellas said.

The process begins in the collection area where bulls are anchored in stalls and the semen is collected. The samples are then processed, initially placed in a water bath and weighed.

Each sample is checked for viability, Ron DeOrnellas said, and analyzed for qualities including live and deformed sperm cells and motility.

The cold room, which looks and feels like a meat-locker, is where the semen is processed and placed into individual doses, or straws, for storage and shipping.

Samples are then frozen in storage tanks filled with liquid nitrogen, which is about 322 degrees below zero.

“We mix the semen with a soy-based extender then the machine feeds it into .5 cc straws that are individually marked with the bull’s stud code and other pertinent information,” Ron DeOrnellas said.

The soy protein is added so when the samples are thawed, they have a food source to keep them viable.

On average, one dose costs about $10 to $25, but some single units can run as much as $300 to $2,000.

“People need to remember, though, there are no guarantees with the samples,” Ron DeOrnellas said.

Supplying the world

Even though the economy remains slow, the bull stud business is doing well because as the demand for milk increases worldwide, the markets for semen in developing countries continues to expand.

“There are growing markets, especially in the Pacific Rim region. There are a number of companies in the market, but we are unique because we are able to offer complete custom service... and we can export our products around the world. ... Anyone who walks through our doorway can have access to the world,” Clark said.

R.C. AgriGenetic’s Springfield operation collects 600,000 doses per year, Kyla DeOrnellas said, with about 85 percent of their product going overseas.

On Wednesday, June 10, Ron DeOrnellas was preparing three tanks for shipment to Argentina, one of the many countries R.C. Genetics regularly supplies. The samples were being collected from four U.S. bulls owned by a group of Argentinians.

The company also regularly supplies Peru, China and countries in the European community, he said.

In 2008, worldwide exports totaled $105.2 million which equates to 13.4 million doses delivered, which is a 20 percent increase over 2007, according to Mildred Haley, agricultural economist with the United States Department of Agriculture Economic Research Service.

Mexico spent the most, paying nearly $12.6 million for about 1.7 million doses. Other top purchasers included the United Kingdom, Japan, Argentina, Canada and Saudi Arabia.

“No business is recession-proof,” Clark said, “but our industry is more based on food consumption and the food industry is a good one to be in.”

Contact this reporter at (937) 328-0371 or elroberts@coxohio.com.

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