Artificial Insemination Business Turns to Bankruptcy for New Life
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Artificial Insemination Business Turns to Bankruptcy for New Life

December 16, 2011




In unsettling news for investors in the artificial insemination business, RC Agri-Genetics LLC, which does business as a firm called Genetic Connection, is filing for bankruptcy in order to shed hundreds of thousands of debts.

In recent years, corporations have been filing for bankruptcy at a record clip, and the filings have struck every industry—from cars to appliances to newspapers. It seems, however, that the recession has also taken a toll on the artificial insemination industry.

RC Agri-Genetics LLC makes most of its money from collecting semen from adult bulls and distributing it to farmers and companies who want to create offspring from the lucky cows, according to a recent report in the Dayton Daily news.

The Ohio-based company filed for Chapter 11 bankruptcy protection in federal court in Dayton this week. In its filing, the company reported that has lost thousands of dollars in each of the past two years.

In Chapter 11, the company will attempt to create a plan for reorganization, which must be accepted by a majority of the company’s creditors, as well as the bankruptcy judge.

A list of the company’s creditors filed in bankruptcy court reveals the complexity of an artificial insemination business, as RC Agri-Genetics owes money to propane vendors, trucking firms, communications businesses, and, oddly, an Assistant U.S. Attorney.

The company’s line of work sounds bizarre, but artificial insemination for livestock is very common, especially for cattle and pigs. Through artificial insemination, breeders are able to economically grow their herds with preferred animal traits.

Of course, the breeding industry is not immune from economic recessions, and it seems that the country’s recent financial struggles have led to a temporary dip in demand for cattle as Americans buy less meat for their dinner tables.

In addition, since cattle breeding is a long-term investment, the economic shock from the recession may have been a bit late-acting in the case of artificial insemination businesses.

Calls from reporters to the company’s bankruptcy attorney were not returned, so sources do not know whether the company plans to continue doing business during its bankruptcy filing, which is a relatively common tactic for firms during bankruptcy.

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