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Wayne McNee
LIC IS merging its farm automation and milking sensor businesses to deliver more integrated technology and meet demand from farmers.
The co-op's Protrack business will transfer into subsidiary Dairy Automation Limited (DAL) in 2015.
LIC chief executive Wayne McNee said the move follows the co-op's acquisition of DAL in February, and a lot of discussion between both businesses on how they would work together as one.
"Since the acquisition of DAL we have witnessed a number of key market developments that we will be better placed to leverage as one entity.
"New Zealand dairy farmers are seeking a direct link between DAL, Protrack and MINDA systems, to provide valuable insights into the performance of their animals. International companies and farmers have also expressed interest in the uniqueness of the DAL technology.
"Moving Protrack into DAL will create one new entity that will oversee all future developments in farm automation for LIC, reducing duplication, providing greater integration across the product range and allow us to grow the business and meet demands of being a significantly larger internationalised entity in the future."
LIC launched its first Protrack automation system in 2003, and has since developed a range that are installed on more than 1500 New Zealand dairy farms. Some integrate with to the co-op's herd management software, MINDA.
DAL provides milk testing sensors that measure fat, protein, somatic cell counts, lactose, conductivity and volume, and present real-time data while a cow is being milked.
Employing around 50 staff combined, a full review of both businesses will be undertaken next year to advise on how the teams should be put together.
McNee says business as usual remains for farmers at this stage, but they will see improved service delivery once the move is completed.
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