Wednesday, 31 May 2023 07:55

Editorial: Genomics IP fight looming

Written by  Staff Reporters
A stoush over intellectual property and genomics could be on the horizon as both DairyNZ and LIC disagree on a key issue for the sector. A stoush over intellectual property and genomics could be on the horizon as both DairyNZ and LIC disagree on a key issue for the sector.

OPINION: It's not common for industry-good body, DairyNZ and farmerowned co-operative LIC to publicly disagree on a key issue facing the dairy sector.

Housed next to each other at the sprawling Ruakura campus, both LIC and DairyNZ represent the interests of 11,000 dairy herds and their owners. This month, DairyNZ came out with its proposal for a single national animal evaluation breeding index that incorporates genomics.

DairyNZ – through subsidiary New Zealand Animal Evaluation Ltd (NZAEL) – believes that creating one animal evaluation index would ensure breeding decisions are made consistently.

This single evaluation will be co-ordinated by NZAEL – a wholly-owned subsidiary of DairyNZ – as an industry-good, credible source of data available to everyone to use.

In other words, this takes the hard-earned genomics database and genomics IP out of the hands of LIC and CRV, two of the sector’s leading genomics companies each with its own breeding worth animal evaluation index.

The sector is currently using three breeding worth animal evaluation indexes. DairyNZ chair Jim van der Poel says this creates confusion in the sector – and sub-optimal outcomes. So, they want things to change.

However, LIC is worried. In a letter to its shareholders, LIC chief executive David Chin didn’t mince his words.

He points out that LIC has already surpassed the DairyNZ proposal’s goal of 15BW and genomics has been a key contributor to this success.

“It is widely available to LIC’s 9000+ farmers and it is delivering significant value on-farm which will benefit your herds for years to come,” Chin told shareholders.

He claims there’s a lack of evidence that there will be value returned to the industry from the model, especially when New Zealand farmers, through LIC, have already made the investment into a state-of-the-art genomic model and made further investments into the collection of over 300,000 genotypes.

Peter Gatley, a former head of LIC’s genetics business, agrees.

Gatley says the attempt by NZAEL to requisition the IP belonging to two independent companies threatens to kill the golden goose.

“New Zealanders do not need reminding that removal of the incentive to get out of bed in the morning and add value results in a death spiral. There is no market failure in genetic improvement. NZAEL is now threatening just that.”

Over the next four weeks, both LIC and DairyNZ will be making their cases to shareholders and levy payers respectively.

It will be interesting to see if LIC and CRV give up their genomics IP to NZAEL without a fight.

More like this

Editorial: Agri's mojo is back

OPINION: Good times are coming back for the primary industries. From sentiment expressed at Fieldays to the latest rural confidence survey results, all indicate farmer confidence at a near-record high.

DairyNZ project wins national award

A project reducing strains and sprains on farm has won the Innovation category in the New Zealand Workplace Health and Safety Awards 2025.

Featured

Horticulture exports hit $8.4B, surge toward $10B by 2029

A brilliant result and great news for growers and regional economies. That's how horticulture sector leaders are describing the news that sector exports for the year ended June 30 will reach $8.4 billion - an increase of 19% on last year and is forecast to hit close to $10 billion in 2029.

National

Machinery & Products

Farming smarter with technology

The National Fieldays is an annual fixture in the farming calendar: it draws in thousands of farmers, contractors, and industry…

» Latest Print Issues Online

Milking It

110,000 visitors!

OPINION: It's official, Fieldays 2025 clocked 110,000 visitors over the four days.

Sticky situation

OPINION: The Federated Farmers rural advocacy hub at Fieldays has been touted as a great success.

» Connect with Dairy News

» eNewsletter

Subscribe to our weekly newsletter