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LIC board chair Murray King
Herd Improvement company LIC’s earning guidance has taken a hit as this season’s forecast milk price for farmers continues to plummet.
LIC says its underlying earnings for 2023-24 financial year will be in the range of $17-$22 million. In July, the co-operative expected underlying earnings to be in the range of $22-28.
LIC is also leaving open the possibility of another revision if milk prices continue to fall.
It says the revised guidance assumes “no further milk price changes or significant climate events take place”.
In the past two weeks, Fonterra has slashed $1.25 from its forecast farmgate milk price range mid-point.
Farmers now expect to be paid $6.75/kgMS for milk this season.
LIC board chair Murray King says earnings were anticipated to be lower than initially forecasted, however the co-op remains committed to ensuring farmers can continue their investment to breeding the most efficient cows for their herd.
“Although it is early into the season, the lower forecast milk payout has created a challenging economic landscape for many dairy farmers across New Zealand.
“Our farmers will be reviewing their cost structures and as their co-operative we are doing the same.
“The board is committed to protecting the long-term sustainability of the co-op and the efficiency of our farmers’ herds, while ensuring that we continue to deliver exceptional value on farm.”
LIC says it will continue to update the market in line with its continuous disclosure obligations.
LIC chief executive David Chin says meeting the revised methane reduction targets will rely on practical science, smart technology, and genuine collaboration across the sector.
Opening a new $3 million methane research barn in Waikato this month, Agriculture Minister Todd McClay called on the dairy sector to “go as fast as you can and prove the concepts”.
The Government has announced it has invested $8 million in lower methane dairy genetics research.
The first calves of a new crossbred dairy-beef offering are now on the ground at a Pamu (Landcorp) farm near Taupo.
Academic and former Fonterra director Nicola Shadbolt has been elected as LIC director.
New Zealand Young Farmers (NZYF) has launched a new initiative designed to make it easier for employers to support their young team members by covering their NZYF membership.
Sheep infant nutrition maker Blue River Dairy is hoping to use its success in China as a springboard into other markets in future.
Plentiful milk supplies from key producer countries are weighing down global dairy prices.
The recent windstorm that cut power to dairy farms across Southland for days has taught farmers one lesson – keep a generator handy on each farm.
The effects of the big windstorm of late October will be felt in lost production in coming weeks as repair crews work through the backlog of toppled irrigation pivots, says Culverden dairy farmer Fran Gunn.
With the current situation in the European farm machinery market being described as difficult at best, it’s perhaps no surprise that the upcoming AgriSIMA 2026 agricultural machinery exhibition, scheduled for February 2026 at Paris-Nord Villepinte, has been cancelled.
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