LIC ends year with $30.6m profit
Herd improvement company LIC has ended the 2024-25 financial year in a strong position - debt-free and almost quadrupling its net profit.
The co-op says it has set a new semen record this season – 142,006 straws for artificial insemination dispatched from its Newstead laboratory in one day. At least five million straws will be processed by Christmas eve when the peak time usually ends.
“It’s been a cracker season here and the massive response to short gestation has been a huge part of that,” says Malcolm Ellis, short gestation length (SGL) breeding programme manager.
“For farmers, the first priority for their breeding season is matings…. However, as they plan for zero use of inductions, empty rates are at the forefront of their minds.
“This year’s SGL dairy bull team will naturally deliver offspring an average 10 days earlier next season, significant for a farm’s calving pattern and production.”
Orders for SGL are at least double last season’s total, with more coming in each day as farmers incorporate the short gestation solution into their existing mating plans, either at the tail-end of AB before the bulls go out or after the natural mating period.
“Farmers have been quick to see the merit in adding a period of SGL to the end of their standard AB plan. The extra days in milk will be gold next spring, but the real advantage is the ability to take the pressure of the bulls. A 500-cow farmer doing four weeks AB often doesn’t calculate 234 non-pregnant cows are waiting for the natural bull team. That’s 12 cows cycling a day. But by adding two weeks of SGL matings, the bulls will only be dealing with 5.5 cows a day which is more achievable and in many cases more economical option.”
Traditionally farmers mate their herd to AB for a period before finishing with natural mating bulls, but the large number adopting a post-bull strategy with SGL this season has required the co-op to extend its peak AB season into the New Year.
“Starting AB again with short gestation makes a great deal of sense to reduce the number of empty cows without extending the calving spread next spring.
“I know one farmer who is planning to pull the bulls out of his multi-herd 2500-cow operation on boxing day, and get the tail paint back out to restart AB for a further 10 days of SGL matings.
“That’s the earliest the bulls have ever been taken out of these herds, as they plan to operate without inductions next season. They are estimating 250 cows still won’t be in-calf at that point, but extending the mating period will result in 65 further pregnancies, and with those cows calving 10 days earlier next spring, calving duration will not be affected.
“If the difference in value between an in-calf cow and an empty one is $1200, then those extra 65 pregnancies equate to a $78,000 gross benefit with reduced wastage from empties. Those numbers make the cost of additional AB straws look a lot more like a critical business investment.”
The co-op’s SGL offering costs an average $12-$17, based on the co-op’s Premier Sires sliding scale pricing.
