Ann: ASSET: LIC: LIC growing business in Australia

• Release Date: 14/08/15 15:41
• Summary: ASSET: LIC: LIC growing business in Australia
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					LIC
14/08/2015 15:41
ASSET
PRICE SENSITIVE
REL: 1541 HRS Livestock Improvement Corporation Limited (NS)

ASSET: LIC: LIC growing business in Australia

14 August 2015
Market statement

LIC growing business in Australia

Livestock Improvement Corporation (NZX: LIC) is growing its business in
Australia after entering an exclusive distribution agreement with Dutch-based
dairy genetics supplier, CRV.

As part of the agreement, the co-op's Australian subsidiary, Livestock
Improvement Pty Ltd, has purchased the stock, assets and distribution
networks of CRV Australia Pty Ltd, which supplies around eight per cent of
Australian dairy farmers with CRV genetics from the Netherlands and North
America.

LIC will distribute CRV's global genetics products to Australian farmers
alongside its own pasture-based genetics offering from New Zealand.

LIC chief executive, Wayne McNee, said it will strengthen the co-op's
proposition to Australian dairy farmers and deliver a better return to its
shareholders in New Zealand.

"LIC has been supplying Australian dairy farmers with New Zealand genetics
for more than 15 years, but the inclusion of genetics from CRV will allow us
to cater to a wider range of farmers, grow the business and deliver a better
return to our shareholders."

Australia's dairy industry has 6,700 dairy farmers, with 1.65 million cows.

Around 90 per cent of them operate some degree of a grass-based system, but
the popularity of the larger, North American and European-style
Holstein-Friesian cow has limited LIC's ability to provide genetics to a
larger proportion of Australian dairy farmers, McNee said.

"Inclusion of genetics from CRV, combined with our portfolio of grazing
genetics, will strengthen our proposition to Australian dairy farmers less
focused on grass-based farming systems," he said.

As a farmer-owned co-operative, all LIC profit is returned to its farmer
shareholders through research and development, and products to improve their
prosperity and productivity and dividends.

ENDS

Contact:
Ashleigh Sattler, LIC Senior Communications Advisor, 027 617 1942
[email protected]

About LIC
LIC is a New-Zealand-based farmer-owned co-operative that provides services
and solutions to improve the productivity and prosperity of farmers. This
includes dairy genetics, information technology, herd testing and DNA
parentage verification. Subsidiary business LIC Automation also provides
unique milk testing sensors that present real-time data while a cow is being
milked.
With origins dating back to 1909, LIC has a long history of providing world
and industry-leading innovations.
Today the co-op employs more than 800 permanent staff in New Zealand,
swelling to 2000 during the peak dairy mating season. LIC also has offices in
United Kingdom, Ireland, Australia, and Brazil.
With annual revenue in excess of $230 million, all LIC profit is returned to
its farmer owners/shareholders in products, research and development or
dividends. More information: www.lic.co.nz
End CA:00268453 For:LIC    Type:ASSET      Time:2015-08-14 15:41:11