KEY POINTS:
Livestock Improvement Corporation is reporting a 15.9 per cent increase in operating revenue to $89 million for the six months to the end of November.
The surplus before income tax increased by 15.1 per cent to $28.5 million.
The tax expense increased significantly because LIC no longer had tax losses available, the farmer co-operative said today.
Chairman Stuart Bay said the winter and spring of 2007 were buoyant, as much as a result of the forecast dairy payout, as by favourable growing conditions around the country.
"This saw farmers invest in their farming and herd infrastructures with increases in expenditure across the range of LIC products and services," he said.
The company said record sales had been achieved across the board, in particular artificial breeding, herd recording and farm automation products.
International returns in LIC's key markets of Ireland and Britain suffered a set-back with the EU setting new requirements for the importation of semen.
But market access was being addressed and would hopefully lead to growth in sales in the markets where demand was strong for LIC genetics.
In Australia, drought had affected sales of LIC genetics products.
- NZPA
