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

 

Housing: Affordability Drops 14%, Driven By Auckland Prices

Housing affordability across New Zealand fell 14 percent in the year ending November 2014, with Auckland’s lack of affordability set to reach levels it hit during the height of the global financial crisis, according to the latest Massey University Home Affordability Report More>>

ALSO:

The Dry: Fonterra Drops Forecast Milk Volumes By 3.3 Percent

Fonterra Cooperative Group, the worlds largest dairy exporter, reduced its milk volume forecast for the 2014-2015 season by 3.3 per cent due to the impact of dry weather on production in recent weeks. More>>

ALSO:

Strike: Lyttelton Port Workers Vote To Escalate Dispute

Members of the Rail and Maritime Transport Union (RMTU) at Lyttelton Port today voted to escalate their industrial action. Around 200 RMTU members have been operating an overtime ban since 17 December and today they endorsed a series of full withdrawals of labour at the port. More>>

ALSO:

Scoop Business: NZ Dollar Falls To 3-Year Low As Investors Favour Greenback

The New Zealand dollar fell to its lowest in more than three years as investors sold euro and bought US dollars, weakening other currencies against the greenback. More>>

ALSO:

Scoop Business: NZ Govt Operating Deficit Smaller Than Expected

The New Zealand’s government’s operating deficit was smaller than expected in the first five months of the financial year as a clampdown on expenditure managed to offset a shortfall in the tax-take from last month’s forecast. More>>

ALSO:

0.8 Percent Annually:
NZ Inflation Falls Below RBNZ's Target

New Zealand's annual pace of inflation slowed to below the Reserve Bank's target band in the final three months of the year, giving governor Graeme Wheeler more room to keep the benchmark interest rate lower for longer.More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news