Farmer control of Silver Fern Farms was the main issue raised yesterday at a roadshow aimed at changing the structure of the co-operative-owned meat company.
Silver Fern Farms (SFF) chose Totara Estate, near Oamaru, for its meeting, a "symbolic choice", chairman of directors Eoin Garden said, because the property was where New Zealand's frozen meat industry was established.
About 50 people crowded into one of the historic buildings at the estate to hear Mr Garden and chief executive Keith Cooper outline why changes were needed to the company's constitution, leading to share restructuring to raise about $80 million of new capital.
The roadshow is one of a series being held in the South Island, concluding with a meeting at Balclutha on July 31 to vote on the changes to the constitution.
The company needs the approval of 75% or more of those who vote.
However, during questions after the company's presentation it became apparent some of those at the meeting feared losing control of the company, which they exercise under the co-operative ownership.
Walter Cameron, who farms near Kurow, said governance was the most important issue and he suggested the changes being proposed were "fixing up the mistakes of the past".
He asked if joining with another co-operative owned meat company was still not an option.
Mr Garden said the board acknowledged the company's strategy and governance had to change and this provided an opportunity for farmers to get the best directors on the board.
Other farmers at the meeting also questioned the issue of governance and company control, along with how the proposed share structure would work.
SFF wants to change its constitution, reducing its board from 12 directors to eight.
Five directors, including the chairman, would be elected by farmer shareholders.
The ward system to elect directors would cease, with shareholders voting for all directors.
If the changes to the constitution are approved, a hybrid co-operative would be created.
Farmers would have the option of retaining their present shareholding or changing them to ordinary shares at a $1 each, also receiving a bonus share for each they held.
In this way, the company hopes to raise capital for reducing reliance on borrowing, for its plate-to-pasture marketing strategy and for continuing to introduce new technology in its plants.
