NZAX-listed animal and farm improvement company LIC will pay a record dividend in a result chairman Stuart Bay says reflects the vibrancy of the farming industry.

Revenue at the dairy farmer co-operative for the year to May was up 21.4 per cent on the previous year at $165.6 million, with record underlying net earnings of $17.1 million, up 87.9 per cent.

The result would give farmer shareholders a record net dividend of $13.6 million, the company said.

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


"The 2009-2010 year was a challenging one on most New Zealand dairy farms," he said.

LIC had been one of the first agricultural companies to hold its prices 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", Bay said.

The company had not increased its prices even though dairy payouts improved in 2010-2011.

Bay will retire from the board of LIC in June next year.