Protein Signals - Week of February 9, 2026

Deep Dive - Zoetis Launches First Commercial Genetic Predictions for Bovine Respiratory Disease

Zoetis released the first commercially available genomic predictions for BRD health and survival in beef cattle, targeting the industry's costliest disease at roughly $1 billion in annual losses across feedlots. The predictions integrate into the existing INHERIT platform, layering BRD-specific expected progeny differences onto maternal, carcass, and feedlot traits and quantifying genetic value at $12 per calf for top-quartile animals. Launch timing aligns with US herd rebuilding, when replacement heifer selection decisions carry outsized 10-to-15-year impact and historically high per-head costs justify genomic testing investment.

Mid-Iowa Cooperative's feed subsidiary consolidated swine-focused milling across northern and eastern Iowa through acquisitions of Mid-State Milling and Edgewood Feed Mill, creating a 2-million-ton regional platform. The deal follows the landmark ADM-Alltech joint venture combining 43 mills and reflects accelerating consolidation as precision nutrition and automation raise minimum efficient scale for independent feed manufacturers. Corn pricing below $4.50/bushel and Iowa's top-four ranking in national feed revenue support near-term margin expansion for newly scaled cooperative operators.

EW Group subsidiary EW Nutrition will take its Brazilian feed additive partner GRASP to 100% ownership over four years, consolidating direct control of mycotoxin mitigation and gut health product distribution in Latin America's largest livestock market. The phased buyout secures positioning in a segment where antibiotic-alternative feed additives are growing at nearly 10% CAGR, driven by regulatory tightening and producer demand for performance-equivalent substitutes. EW Group's vertical integration across poultry genetics, animal health, and nutrition enables multi-layer value capture as competitors like dsm-firmenich and Evonik pursue similar convergence strategies.

Phibro Animal Health's integration of the $350M Zoetis medicated feed additive portfolio is exceeding acquisition assumptions, with pricing gains outperforming expectations and net leverage at 2.8x well ahead of the 2027 sub-3.0x target. Elevated livestock values and favorable feed costs are expanding producer willingness to invest in feed-delivered health products, supporting low-to-mid single-digit organic growth in legacy MFAs alongside acquired volume. The companion animal push through Restore oral health gel and the Lighthouse Pharmaceuticals licensing agreement signals Phibro's intent to diversify beyond its livestock-concentrated revenue base over the next 24 months.

The newly merged Hendrix Genetics Swine division, formed from the January 2025 Hypor-Danish Genetics combination, opened a nucleus farm in southeastern China with Huanshan Group to compete with Genus/PIC and Topigs Norsvin for Chinese genetic supply. China's genetic self-sufficiency plan targeting 95% domestic nucleus herds by 2035 incentivizes foreign companies to localize production, as live breeding-stock imports fell 53% in 2024. Local nucleus operations reduce biosecurity risk and position Hendrix for recurring semen sales and technical service revenue as Chinese producers work to close a 30% sow productivity gap with developed markets.

FDA authorized Boehringer Ingelheim's IVOMEC for preventive screwworm use in cattle, the third emergency animal drug clearance as the Central American outbreak reaches within 70 miles of the Texas border with over 150,000 confirmed animal cases. OTC availability removes veterinary access bottlenecks for roughly 13 million cattle in Texas, where Governor Abbott declared a statewide disaster and USDA committed $850M to containment including a new domestic sterile fly facility. The authorization creates near-term revenue for Boehringer alongside Merck's conditionally approved Exzolt, though FDA's resistance warning signals regulatory limits on sustained prophylactic deployment.