LIC’s discovery of non-performing semen raises questions around whether the terms and conditions outlining the liability of its product should be amended to be fairer to farmers, Federated Farmers dairy chair Richard McIntyre says
Currently, the liability of the product is limited to the costs of the product or service – a policy used by both LIC and rival herd company CRV, he said.
“In having this clause in the terms and conditions – and both of them have it – what they are effectively doing is contracting out of their liability and putting that on to farmers.”
It means these companies are choosing not to adequately compensate a farmer for a loss caused by a faulty product, he said.
“These farmers are left to carry the can. So the question, once again, is that fair and reasonable?”
He said he recognises the number of variables in play when it came to getting cows in calf, from the breeding process to semen production, the product being handled, all the way through to insemination.
McIntyre said he wants to understand more about this issue from the breeding company’s perspective.
“And essentially, why they feel it’s reasonable to push that liability on to the farmer, and in that respect look at sort of potential solutions going forwards.”