The New Zealand Dairy Herd Improvement Industry - Consideration of Restrictions on Livestock Improvement Corporation

Closing Date:

Email: dairyconsultation@mpi.govt.nz

The dairy industry is currently preparing for the transfer of the Dairy Core Database from Livestock Improvement Corporation to DairyNZ. The Government intends to make changes to the Dairy Industry (Herd Testing and Dairy Core Database) Regulations 2001 to support the transfer once DairyNZ is ready for its management responsibilities.

The Ministry for Primary Industries seeks feedback on requirements on Livestock Improvement Corporation that will be unaffected by the transfer. These are:

  • Provide nationwide herd testing services at uniform prices within regions
  • Seek Ministerial consent for any changes to LIC constitution that put restrictions on who may hold shares, maximum voting rights and provides for postal voting
  • Seek Ministerial consent for any application by LIC to cancel its registration under the Co-operative Companies Act 1996 (ie, to demutualise).

The Ministry for Primary Industries is seeking feedback on:

  • Whether the competitive dynamics in the relevant markets are likely to change following the transfer of the database from Livestock Improvement Corporation (LIC) to Dairy NZ
  • How the removal of the requirements on LIC regarding its corporate form, constitutional change and voting rights could impact on competitive conditions in the relevant markets
  • How the removal of the requirement for LIC to provide nationwide herd testing at uniform prices within regions could impact on competitive conditions in the relevant markets. 

It is reasonable to review these restrictions because:

  • Livestock Improvement Corporation’s market position in the dairy herd improvement industry is unlikely to be affected by the transfer
  • Promoting efficient and competitive markets is essential to encourage innovation and deliver economic benefits to New Zealanders
  • The requirements affect Livestock Improvement Corporation’s business operation.

Consultation will start on Monday 28 April 2014 and close on Friday 23 May 2014 at 5pm.

Feedback will inform whether it is appropriate to continue to regulate Livestock Improvement Corporation after the Dairy Core Database is transferred and, if so, the nature of this regulation.

Consultation documents

The New Zealand Dairy Herd Improvement Industry Consideration of Restrictions on Livestock Improvement Corporation [PDF, 154 KB]
FAQs (PDF, 313 KB) [PDF, 313 KB] 
Information sheet (PDF, 265 KB) [PDF, 265 KB]  

Submisions

You can submit your views online through: https://www.surveymonkey.com/s/SubmissionForm

Alternatively, written submissions should be sent directly to:

Email: dairyconsultation@mpi.govt.nz

Post: Dairy Consultation, Ministry for Primary Industries, PO Box 2526, Wellington 6140

In person:

Waikato
5 May 10.30am Hamilton - Ruakura Campus Club, Ruakura Research Centre, 10 Bisley Road, Hamilton
6 May 10.30am Tokoroa - St John's Hall, Cnr Logan & Bonaly Streets, Tokoroa

Taranaki
7 May 10.30am, Stadium Restaurant & Bar (upstairs), TET Multi Sports Centre, 62 Portia St, Stratford

Manawatu
8 May 10.30am, St John Hall, Bowen Street, Feilding

Canterbury and Southland
12 May 10.30am Lincoln - Baylis Lounge, Lincoln Event Centre, Meijer Drive, Lincoln
13 May 10.30am Ashburton - St John's Training Room, 241 Tancred St, Ashburton
14 May 10.30am and 1.30pm Invercargill - Appleby Tavern, Cnr Nith Street & Balmoral Drive, Invercargill

Nelson
Monday 19 May, 10.30 am – Petite Fleur at Seifried Estate, Cnr State HWY 60 and Redwood Road, Appleby, Richmond, Nelson, New Zealand  

Whangarei
Monday 19 May, 11am - Cheviot Park Conference Room, Corner Western Hills Drive (State Highway 1) and Cheviot Street, Woodhilll, Whangarei 

Hokitika
Monday 19 May, 11.30am - Beachfront Hotel, 111 Revell Street, Hokitika

For further information contact the Ministry for Primary Industries on 0800 00 83 33.

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