Sunday, 01 February 2015 00:00

LIC buys out Brazilian distributor

Written by 
LIC chief executive Wayne McNee LIC chief executive Wayne McNee

LIC has purchased the majority interest of its Brazilian genetics distributor, NZ Brasil Genetics Producao Animal Ltd.

 The joint venture (JV) includes exclusive supply of the farmer-owned cooperative’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, about 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,” he says.

More like this

Featured

Big return on a small investment

Managing director of Woolover Ltd, David Brown, has put a lot of effort into verifying what seems intuitive, that keeping newborn stock's core temperature stable pays dividends by helping them realise their full genetic potential.

National

Machinery & Products

» Latest Print Issues Online

Milking It

Cuddling cows

OPINION: Years of floods and low food prices have driven a dairy farm in England's northeast to stop milking its…

Bikinis in cowshed

OPINION: An animal activist organisation is calling for an investigation into the use of dairy cows in sexuallly explicit content…

» Connect with Dairy News

» eNewsletter

Subscribe to our weekly newsletter