Farmer Co-operative LIC is offloading its automation business that it has struggled to make a money earner.
LIC reported $60 million in earnings before interest, tax, depreciation and amortisation. The company’s net profit was up 10.4%, sitting at $33.4 million compared to $30.3 million in the same period last year.
Board chair Murray King says the cooperative is balancing profit with focused R&D and technology investment for the long term.
“We are investing in the areas where LIC has unique capability to maximise the value LIC’s customers generate from their livestock and their produce, providing technology and services to make farmers’ lives easier,” King says.
He says this includes investment in key areas like genetics and research and development.
King says the highlight of the result was farmers’ growing confidence in LIC’s genomic selection with around 1.4 million inseminations from genomic sires this year, up from 400,000 in 2017.
“Genomic science and genomic sequencing technology is generating markedly increased productivity and health traits for dairy cows and better returns for dairy farmers.
“LIC is now a world leader in pastoral dairy genomic science thanks to the foresight of LIC’s board and shareholders.”
He says the cooperative has invested $78 million into genomic science over the last 30 years to speed up genetic gain in dairy herds.
King says the half-year result is pleasing considering the disruption of the second Covid-19 lockdown and he paid tribute to the cooperative’s management and staff.
“Our people have had to overcome significant challenges to ensure business continuity and uninterrupted service for LIC’s 10,000 New Zealand customers and their dedication, resilience and effort is very much appreciated.”