LIC Ireland will not require farmers using its bulls to sign any contract in 2017, the company has told the Irish Farmers Journal.

The firm will spend the next six months trying to reach an agreement with the ICBF, LIC’s European general manager Mark Ryder said.

LIC announced on Friday that it will extend its timeline in requesting Irish farmers to sign up to its new agreement with the company.

The decision was made “in the wake of some confusion within the market around the implications of these new arrangements and LIC Ireland is working hard to ensure that there is a better understanding amongst its customers.”

In December, the Irish Farmers Journal exclusively revealed that the company wanted farmers to sign legal contracts restricting the potential use of LIC-sired offspring.

Ryder said: “LIC has a proud 20-year history in Ireland, and we want to continue to improve the prosperity, productivity and efficiency of our Irish farmers. We have decided to put a stay on the requirement for farmers to agree to the new contracts for the remainder of 2017, while we devote the next six months to reaching an agreement with the ICBF.”

We have decided to put a stay on the requirement for farmers to agree to the new contracts for the remainder of 2017

LIC had moved to introduce a contract for Irish farmers using its bulls that would prevent the farmer selling an LIC-sired bull calf to any other AI company for five years.

The move was designed to protect the intellectual property (IP) of LIC's bull stud.

Quarantine changes

Changes to EU regulations meant that in-quarantine regulations dropped from 104 days down to just 30 days for LIC’s European Bull Stud.

Those quarantine changes meant that elite “high-demand” sires would be available for use in Ireland before they could even be used in New Zealand, in some cases.

However the ICBF advised farmers not to sign contracts because it "goes against the principle of a national breeding programme."

Semen delays

While the contract signing has been put on hold, there will be some delays in getting semen from some LIC bulls into Ireland, as those bulls are only permitted in markets where IP protection is already in place.

“We are disappointed to find ourselves in a position where we have to restrict access to some of our elite bulls, which pose the greatest IP risk, but after five important years working to review these EU regulations in New Zealand, so we could provide Irish farmers with the best product available, we firmly believe in our future here, and we want to find the best solution that services Irish farmers, while providing our shareholders with the IP protection they need,” said Ryder.

We are disappointed to find ourselves in a position where we have to restrict access to some of our elite bulls

Referring to ICBF, LIC said that while the majority of LIC’s Irish customers had signalled their willingness to agree to the new terms and conditions, there had been initial resistance from some industry stakeholders, whose relationship LIC values.

However “as a goodwill gesture for Irish farmers, LIC will still allow some of their Premier Sire bulls to be sold into Ireland, as it demonstrates its commitment to creating great cows for farmers here.”

Ryder added: “To continue to provide Irish farmers with the best cattle, LIC believe that these measures are a necessary requirement, ensuring it can deliver the very best in technology to Irish farmers. We want to find an agreement that satisfies all parties involved, and for that reason, we’re willing to suspend the requirement to sign a contract for the remainder of this year, while we continue to work with our industry partners for the benefit of Irish farmers.”

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