June 28, 2007

Canadian company sells cattle sexing technology to Chinese breeder

Toronto-based Microbix Biosystems Inc. (MBXBF) has announced a deal to license its proprietary Semen Sexing Technology(TM) (SST) to a major commercial breeder in China.

The breeder- the Animal Fine Breeding Station of Hebei Province - is one of the leading suppliers to the livestock industry and will become the exclusive distributor of SST in China.

Microbix' technology allows producers to determine the sex of livestock offspring resulting from artificial insemination. SST will allow Chinese dairy farmers to breed only female animals for their milking herds and ensure the required male animals for meat production.

The company said the technology would allow China to expand its beef and dairy capacity at a much faster pace.

China is facing a growing demand for milk and beef as diets have become more westernized at a time of growing affluence.

While revenues continue to grow for the milk companies, it is becoming an increasingly crowded market and one dominated by a few top producers. A new priority is the development of the beef and dairy herds.