Protrack opens gate to increase

New farm technology has helped to boost profits for Livestock Improvement.

The farmer-owned co-operative made a profit of $18.4 million for the half year ended November, up 2.4 per cent from the $17.9 million posted for the same period the previous year. Revenue rose 7 per cent to $72.3 million.

Chief executive Stuart Gordon said the launch of the Protrack electronic identification system had contributed about a third of the increase in revenue.

The Protrack gate enables a cow to be electronically scanned, "recognised" and then diverted for any requirements the farmer has programmed, such as separating it from the rest of the herd for culling or veterinary attention.

Gordon said market share gains in the artificial breeding business had also contributed to the good result.

An interim dividend of 8.2c a share will be paid. Chairman Stuart Bay said the board's policy was to pay out 50 per cent to 70 per cent of net profit, excluding investment in biotechnology.

He said despite the variable nature of the season, Livestock Improvement was on track to deliver a strong full-year performance.

The company, originally a spin-off from the New Zealand Dairy Board, provides artificial dairy breeding programs to farmers, and herd testing, herd recording and information services.

Livestock Improvement listed on the exchange's alternative market, the NZAX, last April last year although the share register is not yet open to non-farmers. Shares were steady at $1.26 yesterday.