|RFx ID :||22947650|
|Tender Name :||Herd Improvement Sector: Competition and Regulatory Issues|
|Reference # :||C21408|
|Open Date :||Friday, 10 July 2020 3:30 PM (Pacific/Auckland UTC+12:00)|
|Close Date :||Friday, 24 July 2020 2:00 PM (Pacific/Auckland UTC+12:00)|
|Tender Type :||Request for Proposals (RFP)|
|Tender Coverage :||Sole Agency [?]|
|Exemption Reason :||None|
|Required Pre-qualifications :||None|
|Alternate Physical Delivery Address :|
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|Agency Address :|
The dairy herd improvement sector is a critically important part of the New Zealand dairy industry. It provides a range of services that support the continuous genetic gain and improved performance of dairy cattle, for the benefit of both individual dairy farmers and the economy as a whole. Services provided by the industry include herd testing, herd recording, and artificial breeding.
Despite its importance to New Zealand’s economy, the herd improvement sector is small. There are currently two certified herd testing companies – Livestock Improvement Corporation (LIC) and CRV Ambreed. There is a significant imbalance in market power. LIC has an estimated market share of around 90 percent.
MPI requires economic, competition policy and regulatory expertise to carry out:
An assessment of the level of economic harm (both actual and potential) and other impacts that may be arising from the current imbalance between industry good and commercial interests, as a result of commercial control of key IP. This assessment must be sufficiently robust to support or refute a case for government intervention, or other measures either regulatory or non-regulatory, in the sector, ensure that any intervention (if justified) is proportionate to the identified harm, and support the future development of a Regulatory Impact Assessment.
This tender has been awarded.