MORE POWER FROM AMERICA'S BEST Merger of Select Sires and Sire Power Complete PLAIN CITY, OHIO, USA - Two of the A.I. industry's best are now one. After months of positive, forward-thinking discussion and thorough study, the members of Select Sires and Sire Power have approved the merger of the two cooperatives. The vote of each organization was announced in Plain City, Ohio on June 29, 2000 before a large crowd gathered for a Select Sires' Open House that was held in conjunction with the 2000 National Holstein Convention. David Thorbahn, Select Sires General Manager; DuWayne Kutz, Sire Power General Manager; and Wayne Dudley, VA-NC/Select Sires Manager, along with Board Presidents Charles Moellendick, Select Sires; Gary Rickard, Sire Power; and Lee Roy Keck, VA-NC/Select Sires stood before hundreds in making the official announcement. The agreement combines the sire programs of both organizations and integrates the farmer membership of Sire Power into Virginia-North Carolina/Select Sires' local cooperative structure. It was the similarity of organizational objectives of these cooperatives that originated merger discussions five years ago. Even though action did not materialize at that time, the groundwork was laid for these more recent considerations. The cooperative relationship between the two AI industry stalwarts is not new. In fact, Round Oak Rag Apple Elevation, one of the greatest bulls in history and the cornerstone of Select Sires' early success, was co-sampled with Sire Power in the late 1960s. The 40% expansion in sampling capacity of the merged sire programs allows for greater diversity in sire selection and an increased offering of elite sires to the grass roots membership. It moves Select's sire proving program to the forefront as the largest in the USA, sampling an expected 360 bulls per year. The move provides Select Sires a clear genetic advantage in a highly competitive global market and allows the co-op to position itself to take advantage of new opportunities and prepare for the challenges of a rapidly changing dairy industry. "With the fiscal efficiencies we gain united as one, Select Sires will be the most price competitive A.I. organization. We will be able to lower our collective costs and, in turn, increase returns to our member patrons," notes Thorbahn. "Agriculture is a challenging industry with tight margins. Those who choose to lead will prosper," remarked David Thorbahn. "Both organizations bring genetic staying power, financial clout and skilled people to the merger. Collectively we can now offer an even greater genetic advantage in providing an even larger membership the industry's best genetics and services at competitive prices." DuWayne Kutz added, "The combining of Select Sires and Sire Power genetic programs provides the most powerful proven sire lineup in the U.S. and probably in the world. It is strategically sensible and economically logical to unite these co-ops and form a larger, more efficient organization that can be a long-term competitive player in the world A.I. market. The combined sire program assures future industry leadership as together we will have the largest sampling program in the country." Merger Forms Select Sire Power With the consolidation of sire lineups, the proven Sire Power bulls will be available, effective immediately, through all 10 member co-ops in the Select Sires federation. Select Sires will retain the sire facilities in Tunkhannock, PA to house and collect bulls plus process and ship semen. Dairy and beef producers in Sire Power's traditional membership areas of Pennsylvania, New Jersey, Maryland, Delaware and West Virginia have voted and have approved membership in Select Sire Power, Inc.. The newly-named cooperative that combines Sire Power and VA-NC/Select Sires will be headquartered in Rocky Mount, VA with financial operations continuing in Tunkhannock. "VA-NC/Select Sires has always taken pride in offering quality service as an added feature to superior genetics. In addition to top genetics, our priorities are insemination training, mating services, quality products, and reproductive trouble shooting," commented Wayne Dudley, Manager of VA-NC/Select Sires and now Select Sire Power. "As we expand our service area, we pledge to further the tradition of genetic excellence and look forward to the continuing goal of helping dairy and beef producers succeed." "Looking at them in the past as a regional competitor, VA-NC/Select Sires has long been an effective, efficient member of the Select Sires federation," noted DuWayne Kutz, who led Sire Power for 19 years. "Sire Power's management and Board feel that our services and programs are very compatible with both Select and VA-NC. Throughout these negotiations we felt an honest, strong spirit of cooperation, developing a 'win-win' relationship for all parties. Merging with them creates a financially strong operation with tremendous sales potential and proven management leadership that will treat current and future members equitably and fairly." With the merger, Sire Power's mid-eastern states membership area, the adjacent Select Sires non-member sales areas of New York and New England, and VA-NC/Select Sires' marketing territory are one sales area under the name Select Sire Power, Inc. It makes Select Sire Power the largest member cooperative of Select Sires, serving over 12,000 customer-members from Maine to Florida. Projected annual Select Sire Power semen sales are in excess of one million units. Eight farmer-members will be seated on the Select Sires Board of Directors, four of whom will represent the Sire Power membership. With this reorganization Select Sires completes its original 1965 federation plan to serve all U.S. dairy and beef producers through local member co-ops. After the merger, the 10 member cooperatives of Select Sires are expected to sell 33-35% of the A.I. dairy and beef semen marketed in the U.S. Programs Remain Customer Focused "Select Sires is a strong, innovative company that continues to grow and adapt to meet the changing needs of its membership. We are now, without a doubt, the largest A.I. organization in the U.S. We're large enough to serve and, through our 10 member co-ops, small enough to know each of our customers individually," stressed Thorbahn. During negotiations it was evident that this dedication to quality customer service was critical to a positive outcome. Combining sampling programs like the PGA and GOLD means more than giving farmers access to more superior proven genetics. It means offering a sampling program that is genetically beneficial to the market, yet financially more rewarding to the cooperating herd owners. An in-depth review of Sire Power's GOLD (Genetic Opportunity for Leading Dairymen) program and the Select Program for Genetic Advancement (PGA) resulted in a restructured benefit package that will recognize PGA cooperators for early sampling. The world-renowned Select Mating Service (SMS) replaces Sire Power's LAMP (Linear Appraisal and Mating Program) service. The two mating services are mirror images of one another, using computer technology and evaluator "cow-sense" to allow dairy producers to design their own breeding programs. SMS, however, will give LAMP users better heifer mating options and more advanced inbreeding controls. According to Thorbahn, some things will remain the same. "We will not move away from the outstanding type and longevity that Select Sires is noted for in breeding great cattle. The list of renowned sires such as Fond Matt, Elevation, Wayne, Glendell, Mars Tony, Bell, Chairman, Rotate, Elton, Blackstar, Mark, Emory, Patron, Berretta, Barber and Pender will grow at an even faster rate," he emphasized. Capitalizing on the best of the Sire Power programs and genetics lets Select Sires further advance its position in the world market while allowing not only VA-NC/Select Sires, but all 10 Select Sires member co-ops, to strengthen relationships with Select Sires customers and build new ones with Sire Power patrons. Black and white photographs taken at the announcement event will be available for download at www.selectsires.com on Friday, June 30th. Color photos available upon request after July 5th. Copyright 1996-2000 Select Sires Inc. Last updated 29-Jun-2000. Web Site Design by Point & Click Software, Inc.