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Breeding Division
The international diversity and quality of the Company's core
Breeding Division produced growth in both turnover, up 50% to
£71 million, and underlying operating profit, up 69% to
£7.8 million, despite the impact of FMD. This includes estimated
losses equivalent to £0.7 million from FMD.
The US company ABS Global Inc., acquired for £26.7 million
in November 1999, continued to be highly successful and its integration
has provided operating economies, as well as an enhancement to
Genus' technology and international diversity.
However, approximately half the Breeding Division's turnover is
sold direct to UK farmers. While semen sales in the UK have continued
to farmers in areas unaffected by FMD, sales and income generated
from the nationwide insemination service have been severely constrained
since the outbreak began, with no business at all in restricted
areas.
We mitigated profit reduction from lost turnover by reducing UK
staff salaries by 20% in March, from the Board downwards. We also
subcontracted surplus agricultural technicians and veterinary
staff to MAFF to assist with the efforts to control foot and mouth
disease.
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