Dairy farmer profits to hit record levels in 2025
The profitability of dairy farmers is likely to increase in the coming year, accordign to the latest report by the Ministry for Primary Industries (MPI) on the outlook for the primary sector.
FARMER CO-OP LIC has bought the majority interest of its Brazilian genetics distributor, NZ Brasil Genetics Producao Animal Ltda.
The joint venture (JV) includes exclusive supply of LIC's dairy genetics for an initial period of 10 years, through a new entity called LIC NZBrasil.
LIC chief executive Wayne McNee says the co-op began exporting genetics to Brazil in 1999, but the new JV will seek to deliver a better return to farmer shareholders in New Zealand.
"Brazil is the fifth largest dairy industry in the world, with more than 23 million dairy cows. Huge growth is expected over the next 10 years and this presents a significant opportunity for LIC, and our shareholders.
"Our objective with the joint venture is to support the growth of Brazilian dairy industry, providing high quality genetics solutions to build a sustainable business that will generate a better return for LIC in New Zealand."
Brazilian cow numbers are forecast to increase to 25 million by 2020, and annual production to surpass 38 billion litres. While the use of artificial insemination is low, around 20% of cows, it is growing, with the number of inseminations doubling since 2008.
Demand for pasture-based genetics and the progeny it delivers is also on the rise, reflecting a growing belief in the value of genetic improvement to drive productivity gains.
McNee says the JV supports LIC's goal to be $1billion revenue cooperative by 2025.
"To achieve this goal, LIC needs to grow in New Zealand and overseas. As part of this we have been working to identify key markets and businesses that align with our growth aspirations and fit with our co-op focus.
"We have identified the Brazil as a key international market that will add value for our shareholders."
Other key international markets in the co-op's sights include the United Kingdom, Ireland and China.
A technical lab manager for Apata, Phoebe Scherer, has won the Bay of Plenty 2025 Young Grower regional title.
Following heavy rain which caused flooding in parts of Nelson-Tasman and sewerage overflows in Marlborough, the Insurance & Financial Services Ombudsman Scheme (IFSO Scheme) is urging homeowners and tenants to be cautious when cleaning up and to take the right steps to support claims.
Newly elected Federated Farmers meat and wool group chair Richard Dawkins says he will continue the great work done his predecessor Toby Williams.
Hosted by ginger dynamo Te Radar, the Fieldays Innovation Award Winners Event put the spotlight on the agricultural industry's most promising ideas.
According to DairyNZ's latest Econ Tracker update, there has been a rise in the forecast breakeven milk price for the 2025/26 season.
Despite the rain and a liberal coating of mud, engines roared, and the 50th Fieldays Tractor Pull Competition drew crowds of spectators across the four days of the annual event.
OPINION: It's official, Fieldays 2025 clocked 110,000 visitors over the four days.
OPINION: The Federated Farmers rural advocacy hub at Fieldays has been touted as a great success.