Livestock Improvement chairman to retire

Livestock Improvement Corporation (NZX:LIC) chairman Stuart Bay has announced he will retire next June from the co-operative, which today released a record result for the year to May 31.

LIC revenue was $166 million, 21.4% ahead of the $136 million achieved during the downturn year of 2009/2010, and 10.2% better than the $151 million recorded in 2008/2009.

LIC underlying net earnings increased from $9.1 million to $17.1 million and this will flow through to a record net dividend to farmer shareholders of $13.6 million.

The co-operative's total assets including cash, software, land and buildings and bull teams were $236.8 million, an increase of $13.2 million over the previous year with the equity ratio of 78% remaining stable.

Cash flows from operations generated $21.3 million for the year.

Mr Bay said, "Farmers don't welcome hard times, but fluctuating international pricing for our milk products is a factor we have to live with.

"The 2009/2010 year was a challenging one on most New Zealand dairy farms. LIC was one of the first agricultural companies to announce that prices of products and services would be held at 2007 levels to help farmers manage through a tough season and enable them to invest in products and services which would position their businesses to take advantage of the market recovery, when it came."

He said the co-operative’s record performance in 2010/2011, combined with his desire to spend more time with family, marked a natural point at which to hand the baton to a new chairman to guide the organisation through its next phase of growth.

“I have reflected many times on the fact that a good skipper knows when to go," he said. 

"The role of chairman exacts a significant cost on families, with time and attention away from home. I recognise this and made a conscious decision that I would choose the point at which I retire so I can spend quality time with my wife, Beth, our sons and grandchildren and devote more time to the farm, my church and charity interests.”

Murray King has been named chairman-designate.