The company hopes to capture a growing demand for artificial insemination in Brazil’s expanding dairy sector, with annual production to surpass 38b litres by 2020.
“Brazil is the fifth largest dairy industry in the world, with more than 23 million dairy cows,” LIC chief executive Wayne McNee said.
“Huge growth is expected over the next ten years and this presents a significant opportunity for LIC, and our shareholders. Our objective with the joint venture is to support the growth of the Brazilian dairy industry, providing high quality genetics solutions to build a sustainable business that will generate a better return for LIC in New Zealand.”
In July, LIC reported full-year profit dropped about 24% to $18m, reflecting spending on technology and infrastructure and a drop in the value of its elite bull team.
Shares of LIC trade on the NZX in a market restricted to members of the co-operative. They were last quoted at $6.10, giving the company a market value of $180m.
