1. 100% NZ Legitimacy Disputes. There is some debate as to whether a “designated” 100% NZ animal can be legitimately certified by scientific standards. Claims have been made that DNA was not collected on all of the animals originally imported from New Zealand, and therefore current day animals cannot be scientifically certified to be of 100% NZ ancestry with anything other than a paper trail. Simply establishing a “paper trail” does not even meet the burden of proof for current Purebred progeny registration, as DNA testing is required. A progeny chain is only as strong as its weakest link.

We have no idea which side of the debate is correct, and it is of little issue to us. The fact that a debate exists, however, is enough reason to give us pause regarding 100% NZ progeny as an investment. Historical precedents exist in dozens of livestock registries with similar “100% pure progeny branding” campaigns and over time they have not faired well for breeders. For our purposes, we feel the current market premium being applied to those animals is suspect, and not sustainable for the long term.

2. Splitting Hairs. A Purebred, by AKGA definition, is at worst 93.75% Kiko, and in most cases on our ranch, greater than 99% pure. That being the case, we fail to see the value in pricing for 100% NZ Kiko animals being double to triple that of a Purebred Kiko animal with equal or greater conformation and performance. We would not pay 3X for a gallon of gasoline, milk, or a pound of ground beef that was 1% “more pure”, so the practicality of NZ valuation makes little sense to us.

3. Performance vs. Pedigree.  Hybrid Vigor and Heterosis, along with Natural Selection are the very forces that refined the Kiko animal into the superior breed it is today. Hybrid Vigor and Heterosis, by definition, are decreased, if not ultimately deleted, with the mono breeding of 100% NZ animals. Having visited with dozens of other AKGA breeders across the South, many of them concede privately that vigor, weaning weights, and efficiency of their Purebred animals is superior to that of their 100% NZ stock. We believe that we can produce a better and hardier animal via Purebred breeding and deliver that product to our customers at a fraction of 100% NZ cost.

4. Keeping it Simple. Using Warren Buffett and Sam Walton “logic”, we try to operate our businesses, agricultural and otherwise, with a practical and simplistic approach. Consistently selling an exceptional product at a price that most folks can afford has been the recipe for long-term business success since capitalism has existed. As we have not been persuaded that 100% NZ Kiko animals are a premium product [vs. Purebred] justifying the premium price, we have serious concerns about the long-term prospects. From a business standpoint, we see no appeal to entering the current 100% NZ arena, other than the hope that prices will remain inflated long enough to recover an initial capital outlay. 

5. Investment Soundness. Simply put, 100% NZ breeding, as a business segment, seems to exhibit a cost vs. value relationship that we frankly don’t understand. In the past, we bred and sold registered Boer animals with South African [SA] designation for similar premium prices. We routinely sold SA bucks at inflated, albeit competitive, prices to customers who chose inferior SA Boer bucks over Fullblood Boer bucks on our farm that were clearly superior, and substantially cheaper. We eventually exited the SA line, but many did not. As in other registry scenarios, the Boer SA rage cooled dramatically as a mass market, and many new coming breeders suffered substantial loss. We feel it is possible that the current 100% NZ Kiko breeding phenomenon is a parallel to that of the SA Boer from a marketing standpoint.

We should restate that while we have chosen not to deal in 100% NZ, it remains a fantastic animal, as do Kiko Purebreds. We simply do not see a discernable difference of value in owning 100% NZ vs. a Purebred. We have heard, and carefully considered the counter-arguments on this issue. While the 100% NZ sales pitch has some appeal, we find the real world benefits intangible and difficult to quantify. As a rule, we invest in “genetic value”, not “implied value”. Dealing in assets solely based on the hope that the sale price of its production will remain inflated is speculation, not investment.

The points above are our own conclusions and opinions on the 100% NZ issue. Each person must research this for their own specific market dynamics and position themselves accordingly. We respect the differing opinions of other breeder members and realize that the diversity within our registry is to the greater good of the Kiko breed.