CRV Ambreed marketing manager Peter Berney says it makes good sense to have the database and animal evaluation service separated from a commercial environment.
LIC shareholders this month voted to support the transfer control to DairyNZ. The core database contains 46 fields raw data derived from New Zealand dairy farmers who herd test and which relates to calving, mating and production data. The LIC proprietary database contains at least 18,500 fields of data and remains the property of LIC.
DairyNZ has called for tenders as part of a transfer plan for the database. A dedicated project and stakeholders’ group, including representatives from LIC, CRV Ambreed, Federated Farmers and the Ministry for Primary Industries, are involved in the transfer, which could take up to two years.
Berney says LIC has been responsible custodians, “but the industry has moved on from the days when LIC was an industry-good entity and in the early days of DIRA when the industry’s first priority was to protect the asset that is the national dairy database.” It is pretty clear now that the industry is strong enough and the database secure enough in its own right for it to be placed with DairyNZ as the industry-good body.”
CRV Ambreed started its herd testing and herd recording service in early 2000. But it has been hamstrung by the cost of access to data.
“This has meant innovation in the use and supply of information to New Zealand dairy farmers has been restricted so farmers haven’t really gotten the best value out of the database that they could have. Commercial companies can only survive by providing added value to their clients and that’s where we would like to see the focus of the industry.
“The database is protected so farmers don‘t need to fear that it will be taken away; and CRV’s own history is as a farmer-owned cooperative, so we understand the importance and necessity for dairy farmers to look out for their industry.”
Berney is confident the national dairy database, if well structured, will attract investment from outside the New Zealand dairy industry to create products and services that will increase their profitability and competitiveness in the international market.
The transfer was a recommendation of an industry-wide consultation in 2009 headed by Professor Robert Anderson.
LIC Chairman, Murray King says 88.2% of voting shareholders supported the transfer of the core database.
“The core database is a strategic industry asset, built upon the commitment of thousands of dairy farmers who regularly herd test their herds, yet the benefits accrue to every dairy farmer in the country. It is important to understand that the LIC database will operate in parallel and that LIC retains all ownership in cow breeding worth.”
Sire breeding worth will be made available on a royalty free licence arrangement with DairyNZ.
King says the LIC board and shareholder council had exhaustively examined the issue and believed the transfer to be the best outcome for LIC and for the dairy industry.
“For all intents and purposes, business will continue as usual. The transaction is expected to occur within two years.”
