LIC vote on database

LIC developed the database in the 1980s. Under the Dairy Industry Restructuring Act 2001 part of the database was defined as the Core Database (containing 46 fields of raw data relating to herd testing and mating records for the country's dairy cows), with the remainder being the LIC Database (containing more than 18,500 fields of IP developed and paid for by LIC shareholders).

An independent industry review held in 2009, known as the Anderson Review, recommended the Core Database should be run by an independent dairy industry good organisation and, earlier this year, LIC and DairyNZ signed a Heads of Agreement which will see the transfer take place. This is provided LIC shareholders endorse the required change to the cooperative's constitution.

LIC chairman, Murray King, says the transfer of the Core Database to DairyNZ is a good thing for the industry and for LIC.

"We're proud of our history in the development and independent management of the core database over the years, but it's come at a cost to the cooperative both in financial terms and staff time defending the impartiality of that management."

King said the independence of LIC's stewardship of the core database had been challenged over the years with the Ministry of Agriculture and Commerce Commission "and while these, and the annual audits, always proved we acted with the utmost integrity and impartiality, the perception remained that we enjoyed an unfair advantage over competitors; we're delighted that this will end with the transfer to DairyNZ".

King said other recommendations from the Anderson Review will see Animal Evaluation and Breeding Worth for sires transfer to DairyNZ.

"This will not impact on LIC's commercial operations and LIC will continue to supply cow Breeding Worth figures directly to farmers and to other herd record providers under commercial arrangements."

LIC shareholders will be asked to vote on the required change to the cooperative's constitution at its annual meeting in November.

"We're asking our shareholders to vote in support of the change to the constitution and to the transfer of the database because it will allow us to concentrate on what's important – delivering high levels of innovation and service to our shareholders and customers," King says.