Livestock firm lifts joint venture stake

Livestock Improvement has purchased a majority stake in New Zealand Genetics, a joint venture company based in Ireland.

New Zealand Genetics was set up six years ago in partnership with Peter Daly, who had previously represented the company in Ireland.

The acquisition was a natural progression and confirmed a long-term commitment to Ireland, said Mark O'Connor, Livestock Improvement's general manager international and chairman of New Zealand Genetics.

Dairying in Ireland had a number of things in common with the New Zealand system but also presented plenty of opportunities.

"They have got a breeding index which has been developed over the last several years but the delivery of artificial insemination services is less focused. They have a low uptake and in terms of delivering genetic gains that has big implications for them."

The farms are generally smaller and the initial gains that had been made through the use of artificial insemination had plateaued somewhat, O'Connor said.

"The skills in New Zealand are quite transferable."

New Zealand Genetics had a market share of about 15 per cent, "so we're not huge but there is potential to grow it".

O'Connor would not reveal the cost of the investment.

"It's not millions and millions of dollars but it's a sizeable investment in terms of our commitment to grow the business."

Livestock Improvement also owns firms in the UK and Australia and exports to South Africa and other countries.