Farmers Give Strong Support to Dairy InSight-Dexcel Merger

NEW ZEALAND - A new dairy industry organisation combining the functions of Dairy InSight and Dexcel will be formed soon following a conclusive farmer vote on the merger.
calendar icon 28 November 2007
clock icon 2 minute read

The merger should provide a boost to the industry.

Based on a participation rate of 26%, 92% per cent were in favour of the merger.

The result was announced at the Annual General Meetings of Dairy InSight and Dexcel in Hamilton.

The Chairman of Dairy InSight, Doug Leeder, said: “As a result of the vote, and as outgoing Chairman of one of the previous organisations I see the major strategic challenges for NewCo as:

  1. Decision-making based on on-farm needs
  2. Focus on outcomes
  3. Long-term strategic guidance for investment decisions–
  4. Good quality scrutiny of projects
  5. Clear separation of decisions and implementation/delivery

In announcing the year end results for Dairy InSight, Mr Leeder said that, as the manager of the dairy industry’s levy investment, Dairy InSight’s key role has been to ensure the industry gets the best possible value from its spend in the long-term. “It’s crucial that our investment decisions are guided by good strategic thinking and based on good process and good science,” he commented.

Dairy InSight has worked with the industry to develop both a framework for investment and the industry’s capability to deliver outcomes for farmers, and has made considerable progress in these areas, particularly in the past two years.

Financial performance

Dairy InSight reported total revenues of $46.7 million in 2007, with total expenditure of $50.7 million (compared to $45.2 million and $49.1 million respectively the previous year).

Members’ funds at the year end had decreased to $12.3 million in 2007, from $16.3 million in 2006. Commenting on these figures, Mr Leeder said “The reserve has accumulated while the industry built up the capability to set up and implement projects. Now, as projected, the industry is in a better position to invest it. This year we used close to $4 million from the reserve and the plan is to use just over $5.5 million next year. That will leave just over $6.5 million in reserve at the end of the 2008 financial year.”

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