NHIA members National Herd Development and Herd Improvement Co-operative Australia have announced an agreement to pursue a merger in a joint statement from Paul Weller, Chairman NHD and Andrew Verboon, Chairman HICO.
In March 2022, NHD and HICO signed a Memorandum of Understanding (MOU) agreeing to work in partnership to transition into a single Co-Operative.
The Boards of NHD and HICO are now pleased to announce their intention to pursue a merger of the two Co-operatives, ensuring a sustainable Herd Improvement Sector servicing farmers throughout Victoria, South Australia, and Southern NSW. The new entity will trade as National Herd Development (NHD).
The decision was reached after a series of key discussions between the two Boards aimed at addressing the strategic issues facing the Australian Dairy Industry and in particular those factors impacting the cost-effective delivery of Herd Improvement Services.
A due diligence process was conducted by both Boards addressing the financial and operating performance of both entities, identifying potential operational efficiency, improvement to products and services, and the projected financial performance of the merged entity.
The respective Boards have established a working group comprising of the two Chairman and two Directors to progress the various legal, tax advisory and administrative issues necessary to complete the merger prior to seeking members approval.
The Boards will regularly update all stakeholders including Staff and Members during the process and will hold information meetings in the service regions with meeting dates to be advised.