Thursday, February 22, 2024

Bad semen: LIC offers credits, goodwill package to farmers

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The response came after LIC discovered issues during quality control testing with its Premier Sires straws.
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LIC is offering a goodwill and credit payments to farmers affected by semen quality issues to help support their economic recovery.

The herd improvement co-operative is also offering a product credit to affected farmers’ accounts for the affected straws used.

The credit and goodwill packages will include all affected inseminations across all six days. Farmers will be credited to the value of the original product used. 

The package will also include:

• All CIDR inseminations across all six days will be credited a goodwill payment of $30 per insemination.

• All affected inseminations on October 18, 19, 24 and 25 will be credited a goodwill payment of an additional $30 per insemination. This recognises the greater impact identified on these days.

• Any herd where 10% or more of the herd were inseminated on October 18, 19, 24 and 25, a further $30 credit per insemination will be credited.

The response came after LIC discovered issues during quality control testing with its Premier Sires straws that were inseminated on farms on October 17-19 and October 23-25. The issue has impacted 1127 farms, with various percentages of the herd affected.

LIC’s initial response of reimbursing farmers only with the costs of the semen and AI servicing was criticised by some farmers who believed it failed to take into account the downstream impact it could have on their businesses.

LIC chief executive David Chin said he acknowledges that the uncertainty around this has been challenging for farmers to deal with. 

“We have listened to the feedback from many of our farmers and have consulted with our board and Shareholder Reference Group and recognise this situation has impacted farms differently.

“Getting cows in calf goes to the core of what we do, and we acknowledge the potential impact this situation has caused for individual cows in your herd. We are disappointed as your co-op that we haven’t delivered to the high standard you expect of us, and we are taking this situation very seriously.”

Chin said they are continuing to investigate the cause of the issue. After implementing additional quality control checks at 4am each morning prior to semen despatch, LIC has seen no further issues.

“We understand this is the last thing you need to deal with and sincerely apologise for the frustration this has caused.”

LIC will hold an online presentation for all its shareholders hosted by Chin and board chair Corrigan Sowman on November 28 at 7pm, when there will be an opportunity to ask questions.

In Focus: Farmers need better response to semen failure

Listen to “Ep.18 Feds Spotlight | Farmers need better response to semen failure” on Spreaker.
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