ASSET: LIC: LIC purchases Waikato dairy farm to be centre of innovation

26 May 2010 1:53 pm

LIC 26/05/2010 ASSET

REL: 1353 HRS Livestock Improvement Corporation Limited (NS)

ASSET: LIC: LIC purchases Waikato dairy farm to be centre of innovation

Dairy farmer cooperative, Livestock Improvement (LIC) has purchased a 104 hectare Waikato dairy farm to be a development centre for what it calls its 'information integration strategy.'

LIC CEO, Mark Dewdney, said the company's information integration strategy reflects a philosophical shift "from LIC being an animal focused business to a whole farm focused business.

"Traditionally, farmers have relied on animal recording services like LIC's MINDA, which is used by the majority of New Zealand dairy farmers. But the complexity and volatility of dairying has added another dimension and today's farmers need packages which combine a range of data - things like animal, production, weather, nutrients, land, sustainability, financial data and generic merit - into a single view of their farming businesses.

"That's what our information integration strategy is about - providing farmers with integrated information and decision support tools so they can make better decisions, and providing them with a range of automation tools that will increase productivity, and save labour.

"The purchase of this property, which will be known as the LIC Innovation Farm, will accelerate that technology development and provide farmers with a showcase for its practical application on a commercial farm."

Mark Dewdney said the farm, located at Rukuhia in the Waikato, ticks all the boxes.

"The farm is located within 17km of our head office; it's an established, highly productive dairy farm with an excellent history. Over the last two years the farm has averaged around 145,000 kgms from 370 LIC bred crossbred cows.

"We are buying the land, Fonterra shares and livestock for around $7.1 million. Takeover date is 1 June 2010."

Mark Dewdney said that the purchase of the property marks a change in focus for the dairy farmer owned cooperative.

"Until now, we have owned large tracks of land (at Newstead, in the Manawatu and at Balfour in Southland) to grow and prove our elite teams of artificial breeding bulls and stags. However, advances in DNA technology mean we no longer need to farm large numbers of bulls and so the company is currently selling its Feilding farm, and investing in this Waikato farm.

"This property will be the centre for our technology research and innovation, providing farmers with practical examples of how integrated information and automation tools can take their profitability to new levels."

Mark Dewdney said the farm's role as a centre for innovation will not affect its commercial focus.

"This is a productive, profitable dairy farm and we'll continue to operate it to obtain maximum production and productivity."

ends End CA:00195368 For:LIC Type:ASSET Time:2010-05-26:13:53:33

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