Thursday, 14 February 2013 09:16

Demand growth at LIC

Written by 

Dairy farmer cooperative, LIC, has recorded strong performance in the first six months of the financial year, with growth in farmer demand for products and services which have a direct impact on income generating production.

 In the six months to November 2012, LIC achieved revenue of $131.5 million compared to $120.1 million for the same period in 2011. The improvement resulted from growth in demand as LIC had minimal, or no increase in product or service pricing.

This, says LIC chairman Murray King, is a result of farmers, despite conservative times, investing in the products which drive farmer prosperity.

"The start of the dairy season is when most of our activity takes place – with herd testing, herd recording, artificial breeding and animal health – and that coincided, this season, with a drop in dairy payout, from the previous season's high.

"Despite this, demand grew with increases of 7.6% in herd testing, 10.9% in dairy genetics, 31.9% in DNA parentage testing, 17.6% in farm software, 2.7% in farm automation systems and 21.1% increase in animal health services like BVD testing – to mention just a few.

"In good and in challenging times farmers invest in products which will have a material impact on the profitability of their animals and the performance of their farms and growth in demand has been seen across all our product and service offerings.

"The good thing is that LIC is a dairy farmer owned cooperative, so everything we do – from products and services, to the profit, dividends and research and development – all return to our shareholders."

Profit attributable to shareholders (net profit after tax) was $30 million compared to $28 million in 2011. No revaluation of biological assets was done in November (or 2011).

LIC's business, particularly artificial breeding, is highly seasonal. Half year results incorporate the majority of the AB revenues, but not a similar proportion of total costs, and are not therefore indicative of the second half result not the full year result.

The balance sheet remains strong with total equity of $214.6 million compared to $199.7 million at the same time last year.

Total operating cash flow for the six months was a net cash outflow of $5.6 million which compares to $0.6 million net cash outflow in the previous year, the difference mainly due to timing of cash outflows.

More like this

Surviving, thriving this

Winter may have just begun but most farmers are already looking ahead to the next season and the one beyond that.

Quality beef bulls wanted

Making quality beef genetics easier for dairy farmers to access is the aim of a new industry partnership.

Ready for winter mating

With winter around the corner, LIC says farm staff are busy tending to bulls to ensure they capture the vital semen needed for New Zealand’s dairy herd.



Being a good boss during calving

Despite it being a busy time, being a good boss during calving is absolutely achievable, says DairyNZ’s People Team leader Jane Muir.

SFOTY in hot water over social media posts

Organisers of the NZ Dairy Industry Awards are investigating unsavoury social media comments allegedly made by the newly crowned 2020 Share Farmer of the Year, Nick Bertram.

» The RNG Weather Report

» Latest Print Issues Online

Milking It

A ticking timebomb?

There could be another dairy health scare brewing in China and this one starts in our backyard.

Please explain

Does anyone in the Government understand the essential role St John Ambulance has in our society?

» Connect with Dairy News

» eNewsletter

Subscribe to our weekly newsletter