LIC lifts half-year revenue on strong demand for dairy genetics
Herd improvement company LIC has posted a 5.2% lift in half-year revenue, thanks to increasing demand for genetics.
LIC chief executive Wayne McNee says the facility is part of an ongoing redevelopment of LIC’s assets, buildings and systems to help enable the co-op to deliver on its strategy.
“The new lab will set us up for growth. It will give space for us to introduce new tests, and improve service delivery to our farmers,” he says.
The co-op is also upgrading its information technology systems, renovating and refurbishing offices at its Newstead headquarters, upgrading its semen laboratory and building a new semen collection barn.
The move into the new herd testing facility has begun, with the laboratory to be operating at full capacity by August when the peak season starts.
Following a blessing by Tainui kaumatua, the Minister for Primary Industries, Nathan Guy, addressed a crowd of around 80 people, including Hamilton MPs David Bennett and Tim Macindoe, local LIC director David Jensen and senior managers and staff of the co-op.
Guy congratulated LIC, noting that it will be one of the largest facilities of its kind in the world.
“Herd testing and diagnostics are major contributors to the profitability of New Zealand dairy farming. Information collected through these tests is used to predict the likely efficiency of cows, bulls and their progeny.
“Our farmers are the best in the world, and one of the biggest contributors is our smart use of genetics to add value.
“Congratulations on this world-leading facility and thank you for being such strong supporters of the primary industries in New Zealand, a big part of the New Zealand economy.”
LIC’s herd testing service processes at least 10 million milk samples each year.
The new facility at LIC’s Riverlea site includes a laboratory which will process milk samples collected from all North Island dairy herds. It will also be the new base for the staff who collect the samples from farms in Waikato.
It was constructed to support growth of the co-op’s diagnostics service, in response to increasing demand from farmers for tests to confirm ancestry and identify diseases in their herd. The diagnostics service, which analyses upwards of 750,000 tissue and milk samples each year, shares the existing building at the Riverlea site with herd testing.
The new building will allow herd testing to relocate, so the diagnostics service can expand into the vacant space and start work to increase its throughput, turnaround times and investigate new tests.
