As you are aware, DairyNZ and LIC have been in discussions over the last 12 months on how to bring the recommendations of the ‘Anderson Report’ on the ‘Herd Improvement Database Review’ to fruition, to benefit both New Zealand dairy farmers and supporting
stakeholders. To effect the recommendations of the Anderson report requires that:
- The Core Database shift from LIC control and management to that of Industry Good (DairyNZ);
- DairyNZ and NZAEL (New Zealand Animal Evaluation Limited) have full control of BW for both bulls and cows; and
- Data fields required for animal evaluation and industry reproductive and animal health monitoring which are additional to the 46 regulated core fields be supplied to DIGAD (Dairy Industry Good Animal Database).
In order to justify these changes, both parties need to be satisfied with the proposition. For DairyNZ, the changes must result in a new dairy industry good database that is sufficiently enabled to deliver on the Anderson report recommendations. Also tied in with the database
is the on-going support for NZAEL and the NBO (National Breeding Objective) that it supports, particularly the future provision of genomic information for breeding values. For LIC, the deal obviously needs to satisfy their imperatives.
We write to inform you that, regrettably, negotiations have failed because we have been unable to agree on these terms. DairyNZ will explore other options. Please be assured that DairyNZ is committed to finding the best way to bring about the key recommendations of the
Anderson report and we will keep you informed of further material developments.
LIC Chairman, Stuart Bay, today reacted strongly to the suggestion by DairyNZ Chairman, John Luxton, that negotiations have failed over the development of a new dairy industry good database.
“LIC has always been a strong advocate for the transfer of the 46 fields in the core database to DairyNZ as recommended by the Anderson Review – but what DairyNZ is wanting is much, much more."
“DairyNZ has extended the scope of the discussion from the 46 fields (recommended by the Anderson Report) to the 288+ fields contained in LIC’s commercial database. These reflect multi-million dollar shareholder investment, over generations, in the IP and assets behind LIC’s genetics and genomics, among other things. “DairyNZ wants to acquire those 288+ fields at low or no cost."
“That is unacceptable to LIC shareholders who are a subset of all New Zealand dairy farmers, and LIC directors have clear duties of care to the cooperative and shareholders."
“We will not simply give those things away but we have attempted to negotiate in good faith with DairyNZ to achieve the transfer of the core database."
“To date we haven’t reached agreement but LIC’s understanding was that the matter was still on the table for discussion and we are extremely disappointed that DairyNZ has decided to make this issue public when farmers would clearly prefer both parties to reach a settlement which is in the best interests of the industry. That remains LIC’s goal."
“The model that DairyNZ proposes is not compelling and would mean significant
increased cost to farmers."