In the quest for breeding a high-yielding dairy cow adapted to prevailing climatic conditions, from the very beginning genetic material from the most different sources was brought in, with the aim of upgrading locally available cattle. Sometimes, imported Dutch bulls were owned and operated cooperatively. But, only with the onset of artificial insemination in the mid-forties began the concerted effort for genetic improvement on a broader scale. Small local A.I. cooperatives sprang up all over the country, finally merging into two large A.I. Centers -ON in the north and HASHERUT in the south.

The impressive number of Holstein-Friesians imported from the American continent during the fifties and the strict observance of nation-wide breeding plans contributed decisively to the creation of the Israeli-Holstein breed. Under the guidance of ICBA, the two A.I. Centers - ON and HASHERUT established a common Frozen Semen Bank, to be employed locally as well as for export in later years. In 2001 On and Hasherut unite into one coop
Sion.