At first glance, GenoSource might seem like your average business partners. However, dive deeper, and you’ll find a collaboration that intertwines business acumen with a shared vision. This partnership set its roots over a decade ago when the GenoSource partners had a dream—an ambitious idea to cultivate a modern cow capable of thriving in a free stall environment while working efficiently.
“We’re coworkers, we’re partners and we’re best friends,” says Kyle Demmer, Chief Operating Operator of GenoSource. “Pretty much everything we do, we kind of bounce ideas off each other and just feed off each other.”
Fast forward ten years, and that dream has blossomed into a 5,000-cow dairy in Blairstown, Iowa; a remarkably successful venture far exceeding the founders’ expectations. The family owned business has now expanded to include eight families, all united by a profound dedication to Holsteins and a keen interest in paving the way towards a sustainable future. By zeroing in on genetics early through genomic testing and harnessing a plethora of technological advancements, they have propelled their dairy operations to unprecedented heights.
Milk Business Conference - Leader in Technology Award Winner
Technological Triumphs
GenoSource’s foresight in improving genetics, cow comfort, nutrition, and management has charted their path to success. They made a significant leap after the 2020 August derecho that necessitated rebuilding. Undeterred, they installed tunnel ventilation and smart control systems as part of their 2021 reconstruction. These efforts are continuously advancing with the addition of a methane digester and a new maternity barn currently underway.
While the progress has not been without challenges, the returns are tangible. According to Tim Rauen, GenoSource’s Chief Executive Officer, evaluating new technology for the farm comes down to a simple question: Can it make the dairy more profitable? The decision-making process is driven by economic factors—dollars and cents. It’s crucial to determine if a technology not only fits operational needs but also justifies its cost.
“Really does it economically make sense for the dairy operation, and we also do some research behind it to see what other people have done with it,” he says, noting that overall, it’s all about ensuring that the technology aligns with the farm’s immediate needs and future growth.
The implementation of solutions like STgenetics® Farmfit® system allows GenoSource to maintain comprehensive, constant monitoring of their animals, enhancing the conditions for their cows and employees alike. Their commitment to technological innovation ensures an improved environment that extends far beyond simple necessities.
“Three years ago, we used to lock all the cows up to give repro shots, vaccines, as well as breed everything out here in the barns,” Demmer says. “Now, we never lock the cows up. We put them in the sort gates and let the cows come to us. As far as injuries and employee safety, it’s huge. You don’t have to worry about chasing the cows around. I think there’s a huge cost savings, too, and it’s way safer for the cows and the people.”
With feed as a major expense in dairy management, the ability to reduce this cost by even 5 to 20% is huge and Rauen says it could revolutionize the industry.
“By improving feed efficiency, farms can reduce output inputs, including manure and carbon footprints, offering both economic and environmental benefits,” he says, emphasizing research and development in this area could indeed be transformative for the industry.
Celebrating Success
The true measure of GenoSource’s achievements lies in the contentment of their cows—an indicator any successful dairy would covet. By respecting limitations and embracing cutting-edge technology, GenoSource is fostering new opportunities, earning them recognition as the 2024 Milk Business Leader in Technology Award winner.
Rauen shares that genomic testing has allowed GenoSource to identify elite donors, enhancing herd quality not only locally but worldwide. This foresight was particularly pivotal when GenoSource acquired the farm they are today, a previously existing dairy farm.
The rapid improvement of the herd’s quality was largely due to the strategic implementation of genomics, enhancing production and component levels. As Rauen optimistically projects, the industry is on the cusp of producing cows with incredibly high outputs—120 pounds of milk daily, with 5% fat and 4% protein—which he shares, “we will be there relatively soon.”
“I think the sky’s the limit on that aspect,” he says.
Managing Relationships and Decision-Making Within Multi-Family Operations
With numerous families involved in GenoSource’s operations, maintaining harmony and collective decision-making can be challenging. Rauen says removing emotional biases from decisions plays a central role in their success.
“This is easier said than done,” he says. “We don’t sit here and say, ‘Well, his decisions better than the next persons’. In business and life, sometimes they’re too short, and you just get to the roots of it and say, let’s get this figured out. Let’s make a decision. And if you make a decision today, there’s going to be another decision to make tomorrow. When you’re running 100 miles an hour in this industry, there’s really no time to go back and forth on certain decisions, you try to make the best one possible for that situation and move on to the next.”
For GenoSource, the focus is on rational, clear decision making rather than personal preferences. This method allows them to resolve disagreements and move forward without dwelling on past decisions. It’s about keeping the bigger picture—shared goals and open communication—in mind while driving the business forward.
A Future Vision
With a bustling herd of 5,000 cows, GenoSource operates with a keen awareness of the industry’s changing needs. Currently, the dairy milks in a state-of-the-art 90-stall rotary parlor where cows are milked three times daily, achieving an average yield of 96 pounds per day, with a butterfat content of 4.6% and a protein level of 3.5%. This meticulous attention to detail ensures not only the quality and quantity of milk produced but also the health and productivity of the herd.
The Iowa based dairy is committed to expanding its genetic base, a move designed not only to meet operational goals but also to offer cutting-edge genetics to the marketplace. This strategy supports other dairy producers in their pursuit of significant genetic growth, all while keeping costs manageable. Through their commitment to genetic advancement, GenoSource is setting a new standard for efficiency and productivity in the dairy sector.
In essence, GenoSource isn’t merely a dairy—it’s a testament to what vision and technology can achieve when united by a shared goal. It’s clear that efficiency is not just a goal but the driving force for their ongoing success and contribution to agricultural innovation.
Applications are now open for the 2025 MILK Business Awards, honoring innovation, efficiency and leadership in dairy. Winners will be recognized live on stage in Las Vegas. But don’t wait — nominations close Aug. 1.
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