Wednesday, 12 August 2015 15:29

LIC earnings rise

Written by 
LIC chairman Murray King. LIC chairman Murray King.

LIC says its full-year results reflect the resilience of farmers and their commitment to herd improvement.

The farmer-owned co-op total earnings for the full year ending May 31 reached $232 million, 10% ahead of last year.  But its net profit after tax was $13.7m, down $4.4m from the previous year. 

The co-op says this largely reflects continued spending on core technology and infrastructure to ensure its technology is up-to-date.

Net profit after tax for LIC includes the annual revaluation to fair value of the biological elite bull team which this year was an increase net of tax of $2.7m vs a decrease of $0.57m last year. 

Chairman Murray King says the results are also testament to the value they place on services and solutions from their co-op. 

During the 2014-2015 year, LIC had high demand for its core artificial breeding and herd testing services, with a record number of semen straws (at least 5m) processed during the spring mating period. 

Farmers also kept buying new technology from LIC; especially, many used short gestation genetics to improve their herd’s reproductive performance, reduce their reliance on inductions and get more days in milk. Orders for short gestation semen were double that of the previous season. 

Farm automation and sensor technology systems were in steady demand, as was the co-op’s GeneMarkTM DNA parentage testing service. 

A new MindaTM mating app was launched, plus new web-based management tools at Minda.co.nz. 

A new automated heat detection system for herringbone sheds (Protrack EZ HeatTM) was installed on more farms; this will be fully launch next season. 

R&D spending for the year totalled $16.9m (7.4% of revenue); capital spending on new product development was also high. Combined spending on R&D and new product development represented 11% of revenue. 

Work in 2014-2015 included research to improve the accuracy of genomic predictions, a new Johne’s disease breeding value estimate, and investigations into new technology to measure pasture covers, potential new animal health diagnostics tests and automated body condition scoring. 

Extended credit

LIC says it understands what a challenging time this is for shareholders and is standing firm with them.

The board says it will help farmer shareholders by extending credit with interest free periods for AB products during the peak spring mating season, and with interest-free periods on automation and DNA parentage products. 

This should underpin good genetics, as a key driver for the prosperity and productivity of farming businesses. 

The co-op will also watch its discretionary costs without impacting service to farmers.

More like this

Herd production performance soars

New data released by LIC and DairyNZ shows New Zealand dairy farmers have achieved the highest six week in-calf rate and lowest notin- calf rate on record.

Helping heifers grow

Dairy farmers can easily track the performance of their replacement heifers and ensure they reach their genetic potential.

Clear breeding goals

Over the last 13 years, Southland dairy farmers Caleb and Paula Hamill have worked hard to realise their dream of farm ownership.

Next generation of DNA testing

Herd improvement co-operative LIC is combining its DNA parentage testing and genomic evaluation services into one convenient service to help farmers identify their highest genetic merit animals.

Featured

Editorial: War's over

OPINION: In recent years farmers have been crying foul of unworkable and expensive regulations.

NZ-EU FTA enters into force

Trade Minister Todd McClay says Kiwi exporters will be $100 million better off today as the NZ-EU Free Trade Agreement (FTA) comes into force.

Deer industry tackling integrated farm planning

Making things simpler, not harder, for deer farmers in farm planning and coping with regulations is Deer Industry New Zealand (DINZ) industry capability manager John Ladley’s current focus.

Online business directory for rural women

Rural Women New Zealand (RWNZ) is launching an online business directory called The Country Women’s Collective to promote and support entrepreneurial rural women.

Sam Neill joins Campaign for Wool

New Zealand actor Sam Neill has joined the Campaign for Wool NZ as an ambassador, lending his name and profile to educate and advocate for New Zealand strong wool.

National

Council lifeline for A&P Show

Christchurch City Council and the Canterbury Agricultural and Pastoral Association (CAPA) have signed an agreement which will open more of…

Struggling? Give us a call

ASB head of rural banking Aidan Gent is encouraging farmers to speak to their banks when they are struggling.

Cash flow is king

Cash flow budgeting is going to be critical for dairy farmers in the coming season.

Machinery & Products

New name, new ideas

KGM New Zealand, is part of the London headquartered Inchcape Group, who increased its NZ presence in August 2023 with…

» Latest Print Issues Online

Milking It

Critical industry?

OPINION: There's an outpouring of concern over the parlous state of one of our major industries.

Wrongheaded

OPINION: Food security is a sore point in the UK, as a direct result of its National Food Strategy, and…

» Connect with Dairy News

» eNewsletter

Subscribe to our weekly newsletter