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According to ABC, it took 10 fire crews more than two hours to fully extinguish the fire after it broke out around 3 a.m. local time.
A spokesman from the Country Fire Authority told Daily Mail Australia that the fire had "completely shredded the building."
Country Fire Authority Gippsland commander Chris Loeschenkohl said the crew had to be wary of "projectiles" coming at them while they tackled the blaze.
"The liquid inside the cylinders was rapidly expanding and essentially the lids of the cryogenic cylinders were just popping off the top and projectiles were being thrown from the building," he told ABC.
"So firefighters went into a defensive mode initially to protect themselves, because there were also LPG cylinders at the neighboring property, and they did a magnificent job."
Loeschenkohl added that he has never had "anything to do with the artificial insemination (AI) side of things before" during his career.
The semen cylinders themselves are reportedly worth up to $1,000 each. The value of their contents varies.
“It’s going to be a real blow for sure,” said Yarram Herd Services chairman Aaron Thomas, noting that area farmers rely on artificial insemination to keep their businesses moving.