The two organisations had decided to streamline herd improvement services in the region in the interests of the dairy community.

“Competing against one another was inefficient for our respective organisations and detrimental to our dairy customers," a statement said.

Under the new arrangement, two key ABS employees - Kahn Taylor and Andrew Hipworth - have accepted positions with NHD.

Kahn will assume a senior role at NHD in semen distribution, sales and service while Andrew will continue providing sales and service to local clients.

“We believe that by working together we can deliver better herd improvement services in north-west Victoria and ensure the sustainability of herd improvement services in the region," he said.

ABS general manager Steve Fried said the merger was a "critical step in our strategic plan to work more closely with key partners to deliver the full range of herd improvement services and ABS products in a more efficient and cost effective manner”.

ABS and NHD believe that the medium to long term future of dairy in the region is promising but that coping with low irrigation water allocations and commodity price declines has presented challenges that need to be addressed.

“This arrangement will ensure dairyfarmers in north-west Victoria receive high quality herd improvement services at a reasonable cost,” Mr Fried said.

NHD has been a long time supporter of ABS products and will continue to offer ABS semen, as well as semen from other suppliers.

ABS herd management programs such as GMS will continue to be offered through NHD.

* Details: Steve Fried, ABS, 0427 512 063 or Christian Hickey, NHD, 0428 511 628.