Friday, 19 December 2014 08:22

NZ genetics flow to Brazil

Written by 

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.

More like this

Keeping a watch on dairy farms

OPINION: Dairy farmers are under increasing pressure to safeguard their livestock, equipment and operations from a range of security threats.

Inconvenient truth

OPINION: You would've missed this one if you rely on mainstream media for your news, but your old mate reckons credit should go where credit's due: Emissions by dairy cattle decreased by 1.6% according to the latest NZ Greenhouse Gas Inventory report.

Featured

National

DairyNZ Farmers Forum underway

Over 300 farmers and rural professionals have gathered in Hamilton for the first DairyNZ Farmers Forum for this year.

Machinery & Products

Shearing legend hooked on CanAm

Sir David Fagan, world-renowned competitive sheep shearer with 642 shearing titles worldwide and a knighthood to his name, now runs…

50 years of tractor pull

This year, the Fieldays Tractor Pull, in association with PTS Logistics, mark a major milestone – 50 years of crowd-thrilling…

The Wrangler's birthday bash

It's the Wrangler Limited’s 30th birthday and to celebrate the milestone a prototype of the E Series Wrangler - a…

» Latest Print Issues Online

Milking It

Free speech

OPINION: The Free Speech Union is taking this one too far.

Drug survey

OPINION: New national data from The Drug Detection Agency (TDDA), a leading workplace drug tester, shows methamphetamine (meth) use is…

» Connect with Dairy News

» eNewsletter

Subscribe to our weekly newsletter