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Masterrind: One of the Biggest and Most Agile Players in Europe 600 employees, 600, 000 herd book cows, 80 young sires purchased yearly and 2.6 million doses sold, 1 million of which are exported to 50 countries worldwide. The numbers generated by Masterrind, Germany’s biggest breeding organization, are big enough to register in the international arena. Founded ten years ago, and incorporating four well-known shareholders in the RPN, ZEH, SRV, and WEU, the company has ambitious goals moving forward. Its expectations of itself as a leader in Europe are high, but thanks to a clear vision they will be met sooner than later. STEPHAN SCHNEIDER W CHRISTINE MASSFELLER e have been sitting in the office of Cord Höltje at the headquarters of Masterrind in Verden, located in northern Germany, when his colleague Dr. Josef Pott tells of new plans. The number of purchased young sires on a yearly basis is to be doubled. Instead of 80 young sires, Masterrind wants to purchase 160 young sires in future years. Not to simply bring more bulls into production, but, as Pott says, to be able to incorporate a secondary selection step. Pott continues, ‘we want to have a large selection of candidates available, if in the first year there is movement in breeding values between the purchase date and the beginning of sperm production. We have seen that the genomic values of young sires can change a lot. They are influenced by different factors, like basis and model adaptations, but also adjustments in the breeding values of their sires. The bigger the group is that we can select from, the higher the likelihood that we will bring bulls into production that will meet our standards. Our goal is and will remain the offering of a selection of sires that is so variable that it will truly be able to meet the many different needs of our domestic and international clients.’ Polled animals form one of many niches tat Masterrind caters to. Kid-Red-PP, a Kanu son out of a Bookem daughter to SHB Mrspoll VG-86, is one of their top sellers with his all-round abilities. • Founded: 2006 • Shareholders: The 4 breeding and herdbook organizations RPN, ZEH, SRV, WEU • Headquarters in 3 locations: Verden, Meissen and Bad Zwishenahn • Subsidiaries in 8 countries: Great Britain, the Netherlands, China, Lithuania, Poland, the Czech Republic, Romania, Morocco • 600 employees • Purchased bulls / year: 80 (goal: 160) • Semen sales in Germany: 1.85 million doses • Semen exported: 1 million doses NO STANDSTILL It is not by chance that we begin our article about Masterrind, part of our series on the global players, with that statement from Josef Pott. Masterrind has been the national leader in German market for a while. And this is not simply due to their size, but above all because of their ability to continually reinvent themselves. No other station in Germany has gone through as many changes in recent years and given themselves such a modern image, and at no other company in Germany is the breeding program as closely coupled with the marketing department. Masterrind began marketing their sires internationally under their own management 8 years ago. They have subsidiaries in 8 countries and export to 50 different countries all over the world. For every market they want the right product. It is no coincidence that we are meeting specifically with Josef Pott and Cord Höltje at the Verden headquarters. Pott and Höltje are 2 of 4 Masterrind directors who cover the whole • Export to 50 countries worldwide • Most important export markets: China, the Netherlands, France, Austria, Great Britain, Switzerland, Hungary, Spain, Canada • Proportion of genomic sires / export: 50% • Proportion of genomic sires / domestic: 80% • Current top-sellers in Germany: Snow RC, Baldur (Balisto-Epic), Kid-Red-PP (Kanu-Bookem) • Current top-sellers for export: : Snow RC, Beart, Fanatic, Joclassic (Supersire-Beacon), Starhawk (Supersire-Observer), Mozarella (Mogul-Destry) dynamic. There is constant movement and a lot is asked of a company that wants to grow on the international market. One has to be flexible and adaptable in order to succeed,’ says Höltje. DIVERSITY The requirements of the group of 160 young sires, from whom the selection for the domestic and international markets will soon be selected, are extremely high. But which requirements does Masterrind definitely want to meet? The answer from Cord Höltje leaves room for different ideas. ‘All of them but not all of them,’ he says with a grin before being more clear. ‘Of course, it is about achieving high breeding values and about having a selection that satisfies all specific genetic requirements. We have markets that want polled and others that want Red Holsteins. Others want better fitness and yet others more production, which is particularly true internationally for countries in Eastern Europe and Asia. We still see a major market in the „International breeding possesses an unbelievable dynamic.“ – Cord Höltje spectrum of operations from breeding, herd book maintenance, marketing of breeding heifers, writing agricultural articles and, of course, insemination of different dairy and beef breeds. From an international perspective, they are the key figures of the company. Pott, the director for the production branch, sets standards that are implemented in the area of sperm production. Höltje has the reins in his hands for the marketing department and determines the direction for their growing international marketing team. It is clear to both that a standstill in either of their domains means taking a step backwards. ‘International breeding possesses an unbelievable variance while simultaneously being highly HOLSTEIN INTERNATIONAL 68 2/2017 traditional Holstein countries here in Western Europe and North America. The focus there is on conformation and pedigrees. Our team for international marketing knows their markets very well. That is why they have a close relationship with our sire analysts.’ And where and by which criteria are selections made? ‘That is difficult to answer simply,’ says Josef Pott. ‘Some months a large part of the selected bulls come directly from farms in North America, as there are almost only local breeders here, and other times the bulls come from other sources. For us, the origin is not decisive but rather the question of whether a young sire is marketable or not. That is why there is not one specific breeding index HOLSTEIN INTERNATIONAL 69 2/2017 Cord Höltje (left), business director for the semen marketing branch, and Dr. Josef Pott, business director for the production branch, to which the breeding program also belongs. Article published by: www.holsteininternational.com that we orient ourselves by. The RZG is naturally our most important selection criterion but when we find a bull that is not as high on the German basis but tests well on TPI, LPI, ISU or NVI, then we buy it for that respective market. Perhaps the main reason that we place more emphasis on international indexes compared to other German organizations is because we market our sires internationally ourselves. For us it would be a dream to have breeding values from sires for all relevant international indexes.’ EMOTIONS It is clear from further observations that Masterrind follows their own paths in comparison to other German stations. One observation is that there is an above-average presence of truly internationally recognized families, and the other observation is the above-average level of conformation in the lineup of sires. ‘Did you know,’ explain Pott and Höltje with equal conviction, ‘that breeding is very pragmatic in many areas today but that there is still enormous amounts of emotion invested? From our point of view, conformation and pedigrees are topics that are clearly important to many breeders and dairy farmers and that emotions address. If we need to choose between two bulls with similar breeding values, then obviously, we will go with the bull with better conformation and a more renowned international pedigree. You see, the proportion of genomic young sires already has an extremely high level now and will continue to increase, particularly for our international sales. Only absolute exceptions among the daughterproven sires are able to generate sustained high sales numbers. We must accept that. The challenge is then to find the young sires that will be marketable. Conformation and pedigree are therefore still useful promotional tools.’ l