Board Chair and
Nelson dairy farmer Murray King told LIC shareholders, directors, shareholder
councillors the co-op’s “solid financial results” show it is in a strong
position to continue to invest in technology and data platforms to fuel
genetics and herd management innovations.
For the year
ending 31 May 2019, LIC reported $22.2 million NPAT, up 139% from $9.3 million
the previous year.
LIC delivered new records in strength of balance sheet, operating cash flow and total revenue, as
well as a $15.6 million dividend to its 10,300 shareholders, the largest paid
out since 2013.
“The work we have
completed since 2016 to shape LIC into a modern, progressive co-op have enabled
this year’s solid results.
“2018-19 was about
embedding our new innovation-led growth strategy with an ongoing focus on the
core NZ dairy industry. This year we will focus on driving this strategy
forward by taking full advantage of data to benefit both LIC and our farmers.
“We believe these
results are sustainable and we are confident that we will continue to build on
them in the coming years.”
in R&D remained high in 2018-19 at $13.6M, which equates to 5.5% of revenue
and is well above the primary sector average of around 1%.
King said the
co-op also received additional funding from MPI and MBIE to boost two key
projects aimed at driving improvements in the health and wellbeing of the
national herd and more sustainable milk production.
Dairy programme alongside DairyNZ and MPI will strengthen our existing R&D programme
to keep our farmers and New Zealand leading the global pastoral dairy system,”
LIC Chief Executive
Wayne McNee explained how data will unlock the next wave of productivity and
sustainability improvements for farmers.
“The next era of
farming starts with taking full advantage of data.
“Dairy farmers are
being tested like never before. They are looking for certainty and trusted
partners to help them navigate the rapidly changing domestic and global
industry, and we want to step up and help farmers meet those challenges
“Starting with the
first national herd database, one of the strengths of our co-op has always been
our ability to use our data to drive genetic gain, produce better milk and help
farmers save time and increase their profits.
“Now, more than
ever, we’re using the data our co-op collectively gathers and shares to give our
farmers the ability to make faster, more informed decisions on farm. In our cutting-edge
genomics work, big data is allowing us to supercharge the rate of genetic
McNee said LIC has
taken major steps forward in its digital transformation agenda, including
moving one billion pieces of farm data into the cloud to open up new
“As we move from a
‘cow-focussed’ business to a truly ‘customer-focussed’ business, we will need
to continue with significant investment in R&D and take advantage of
emerging technologies. This work is
shifting us from creating product around cows to building ecosystems around our
customers to support them and their farms and keep New Zealand leading the
global pastoral dairy system.”
This year LIC was
awarded the ‘Co-operative Business of the Year’ award at the Co-operative
Business Awards, where it was recognised for its “significant and positive
impact” within the co-operative community and returning benefits to its 10,300
LIC has also been made
a finalist in the NZ Biosecurity Awards for its world-leading response to
Murray King says
the co-op’s comprehensive daily testing regime and biosecurity protocols in the
face of M. bovis are important to protect the national herd.
“As the farming
community in New Zealand continues to grapple with this biosecurity threat, LIC
is committed to doing all we can to eliminate the risks and reassure farmers.”
All meeting resolutions were passed by shareholder vote:
- Tim Gibson was reappointed as an independent director of the LIC Board for a further three-year term.
- Sophie Haslem was ratified as an independent director of the LIC Board until the 2020 Annual Meeting.
- Director Remuneration
- Shareholder Councillor Remuneration
- External Auditor Reappointed
- Shareholder Council Budget
Watch a video of the meeting and view the presentation
and meeting resolutions here.