The new entity, B+LNZ Genetics, would speed up genetic advances for sheep and boost onfarm gains by more than $740 million over the next 20 years, B+LNZ chief executive Scott Champion said.
It would also add investment to beef genetics.
A successful vote would bring together the activities of Sheep Improvement Ltd (SIL), the national sheep genetic database, the B+LNZ Central Progeny Test, and Ovita, Champion said.
The investment would support a range of research on identifying new breeding traits to produce more efficient animals and those that met consumer preferences in export markets, he said.
“Of particular focus will be finding traits that thrive on hill country, as increasingly this is where NZ sheep and beef production is based, with changing land use on flatter land to dairy.”
Voting packs were with farmers and they were being asked to support the organisation’s continued investment of $2.9m a year for the next five years, he said.
“This would be matched by the Government, which has already said it will invest $3m a year if the proposal is supported by farmers.”
Each year, for the next five years, B+LNZ proposes to contribute $2.9m a year towards a total annual investment of $8.8m.
That will return an additional $5.90 of profit per lamb after 10 years (source: abacusbio).
Overall, estimated gains onfarm for the sheep industry from the new genetics programme are $742m over 20 years from the five-year investment of $44m.
The extra profit comes from adding new traits, improved accuracy in genetic evaluations and greater adoption of genetic tools and information by industry.
Gains for beef and for other parts of the value chain will be additional.
The Government, through the Ministry of Business, Innovation and Employment (MBIE), has committed $15m over the next five years to accelerate genetic progress in NZ sheep and cattle.
B+LNZ Genetics has been established to carry out the work.
The new entity would allow the organisation to continue providing world-leading genetic technologies that assisted breeders to produce fit-for-purpose sheep and cattle to meet the future needs of NZ farmers, Champion said.
B+LNZ Genetics would be owned by B+LNZ and operate as a partnership with AgResearch.
“Of particular focus will be finding traits that thrive on hill country, as increasingly this is where NZ sheep and beef production is based, with changing land use on flatter land to dairy.”
Scott Champion
B+LNZ
Because B+LNZ’s total investment over five years into the genetics entity was more than a third of its $23m forecasted levy funds for one year, the B+LNZ constitution considered it to be a “significant transaction” and a farmer vote was required, he said.
Voting will close at the annual meeting at Manfeild Park, Feilding, on Friday.
At the same time, farmers are also being asked to vote on a proposal by an independent industry group to investigate the value proposition for a future wool levy.
The voting pack also contains a request from the Meat Industry Excellence (MIE) group seeking financial assistance from B+LNZ to support its efforts with red-meat sector reform.
Two new farmer-elected directors will be introduced to farmers at the annual meeting, Waikaka Valley farmer Andrew Morrison, who will represent the Southern South Island electorate and Wairarapa farmer George Tatham, who will represent the Eastern North Island electorate.
Both were elected unopposed before Christmas and replace directors who had not sought re-election.
Chairman Mike Petersen, the Eastern North Island farmer director, will stand down at the meeting, having served on the board for the past 10 years, seven as chairman.
Southern South Island farmer director Leon Black is standing down after six years on the board.
