Sire semen quality issues: Farmers affected to receive goodwill payment

Batches of sire semen used on herds at some points during October resulted in lower-than-normal pregnancy rates. Photo / Mark Mitchell

RNZ

Animal genetics company Livestock Improvement Corporation (LIC) has announced it will give a goodwill payment to farmers affected by sire semen quality issues.

Batches of sire semen used on herds on October 17-19 and October 23-25 resulted in lower-than-normal pregnancy rates.

Just over 1100 herds were affected with various degrees of failure - ranging from 2.5 per cent to more than 20 per cent.

A biological breakdown occurred within the straws which impacted semen survival - something LIC continues to investigate.

The farmer-owned co-op said it has implemented additional quality control checks at 4am each morning prior to semen despatch, but since doing this no further issues have been identified.

LIC was quick to notify farmers of the issue and refunded the cost of the semen straws and insemination.

But Federated Farmers dairy chairman Richard McIntyre said the quality issue raised bigger questions about the risks farmers took when using breeding companies.

“One of the frustrating bits from a farmer point of view is that both of the major breeding companies have clauses in their terms and conditions that limit their liability to the cost of the product or service involved.”

On Friday, LIC updated farmers and announced it would add a product credit to affected farmers’ accounts.

“All affected inseminations on 18, 19, 24 and 25 October will be credited a goodwill payment of an additional $30 per insemination.

“This recognises the greater impact identified on these days.

“Any herd where more than or equal to 10 per cent of the herd size were inseminated on 18, 19, 24 and 25 October, a further $30 credit per insemination will be credited.”

LIC shareholders have been invited to join LIC chief executive David Chin and board chairman Corrigan Sowman for an online meeting on Tuesday night to hear more about the issues and to ask questions.

- RNZ