Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Livestock Improvement freed from legislative shackles

Livestock Improvement freed from legislative shackles following database transfer

By Jonathan Underhill

Aug. 6 (BusinessDesk) - Livestock Improvement Corp, which provides testing and artificial breeding services to the dairy industry, has been freed from legislative constraints on changing its constitution or demutualising following the transfer of its core database to DairyNZ.

The restrictions had been put in place because LIC, as it is known, held a genetics data base on the entire New Zealand dairy herd. In 2012, LIC and DairyNZ agreed to the transfer of the database to the Dairy Industry Good Animal Database to be run by DairyNZ, an industry group for New Zealand dairy farmers. Under the rules, LIC had to get consent from the Minister for Primary Industries to change its constitution or demutualise.

Chief executive Wayne McNee told BusinessDesk there were no plans to change the cooperative but the new freedom would help the company achieve its target of reaching $1 billion of revenue by 2025. It plans to do this through a combination of organic growth, expanding overseas and through acquisitions.

LIC had no need to publicly raise any capital for acquisitions because it carried no long-term debt and had "significant seed funding available," McNee said.

Shares of LIC trade on the NZX in a market restricted to members of the cooperative. They were last quoted at $6.341, giving the company a market value of $187 million.

Last month LIC reported full-year profit dropped about 24 percent to $18 million, reflecting spending on technology and infrastructure and a drop in the value of its biological elite bull team.

McNee said LIC is upbeat about the outlook for the dairy industry despite this year's slide in prices of dairy products.

"We still see massive opportunity in the dairy industry and we see a good year for us," he said.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Half Empty: Fonterra's 2017 Opening Forecast Below Expectations

Fonterra Cooperative Group raised its forecast farmgate milk payout for next season by less than expected as the world's largest dairy exporter predicts lower prices will crimp production and supply will pick up. The New Zealand dollar fell. More>>

ALSO:

Pest Control: Mouse Blitz Team Leaves For Antipodes

The Million Dollar Mouse project to rid Antipodes Island of mice is underway with the departure of a rodent eradication team to the remote nature reserve and World Heritage Area. More>>

Gongs Got: Canon Media Awards & NZ Radio Awards Happen

Radio NZ: RNZ website The Wireless, which is co-funded by NZ On Air, was named best website, while Toby Manhire and Toby Morris won the best opinion general writing section for their weekly column on rnz.co.nz and Tess McClure won the best junior feature writer section. More>>

ALSO:

Pre-Budget: Debt Focus Risks Losing Opportunity To Stoke Economy

The Treasury is likely to upgrade its forecasts for economic growth in Budget 2016 next week but Finance Minister Bill English has already signalled that more of his focus is on debt repayment than on fiscal stimulus or tax cuts... More>>

ALSO:

Fulton Hogan's Heroes: Managing Director Nick Miller Resigns

Fulton Hogan managing director Nick Miller will leave the privately owned construction company after seven years in charge. The Dunedin-based company has kicked off a search for a replacement, and Miller will stay on at the helm until March next year, or until a successor has been appointed and a transition period completed. More>>

ALSO:

Gordon Campbell: On Electricity, Executions, And Bob Dylan

The Electricity Authority has unveiled the final version of its pricing plan for electricity transmission. This will change the way transmission prices (which comprise about 10% of the average power bill) are computed, and will add hundreds of dollars a year to power bills for many ordinary consumers. More>>

ALSO:

Half Empty: Fonterra NZ, Australia Milk Collection Drops In Season

Fonterra Cooperative Group says milk collection is down in New Zealand and Australia, its two largest markets, in the first 11 months of the season during a period of weak dairy prices. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news