Hamilton-based Livestock Improvement Corporation (LIC) says an extended ban on exports of bovine semen to Europe may hurt its long-term business.
LIC chief executive Mark Dewdney said that not only were all bovine semen and embryos in storage in New Zealand no longer eligible for export to theEuropean Union but Europe might also limit the use of NZ semen already in Europe.
"If there is a medium to longer term ban on the export of New Zealand bovine semen to Europe this would have some impact on LIC," he said.
Semen exports to the affected countries account for about 3 per cent of LIC's total earnings.
Biosecurity New Zealand officials voluntarily suspended certification of semen and embryos being sent to the European Union - a trade worth about $6 million a year - to sort out issues raised by the EU in its first audit of the certification system.
Biosecurity New Zealand policy director Douglas Birnie said last month he expected the trade to be interrupted only until the end of March.
LIC has subsidiary companies based in the UK and the Republic of Ireland, and Dewdney said both subsidiaries had adequate stocks on hand to cover the current artificial breeding season.
But there was a risk EU countries could also ban the use of semen already in Europe, he said.
If the UK and Republic of Ireland officials prevented the sale and distribution of semen already in those countries, the impact would reduce the current year's financial earnings for LIC.
The EU's Food and Veterinary Office said in a draft copy of its audit - essentially a checklist of quality systems - that New Zealand had not scored enough points.
