Shareholders yesterday questioned Silver Fern Farms' co-operative ownership structure, saying farmers who had not supported the company's recent capital-raising were being treated the same as those who had.
There was also anger the meat company did not pay suppliers an end-of-year rebate for the 2008-09 season.
Former company director David Shaw, of Clinton, told about 100 shareholders attending the company's annual meeting in Gore farmers were not being paid the same price for stock, and questioned whether Silver Fern Farms' new constitution met the status of a co-operative.
Hugh Gardyne, of Gore, agreed, saying recent changes to SFF's capital structure had disconnected supplier shareholders from the company and removed the security of share redemption.
SFF chairman Eoin Garden said he understood the frustration, given falling lamb prices and the anxiety and tension that caused.
The company had operated a debt-funded model for many years, which he said could not continue, and in two and a-half years it had repaid $207 million in bank borrowing and $50 million in bonds.
"You can't do that and shareholders expect to get a rebate," he said.
Money was also being invested in the future, in technology and marketing, which reduced the ability to pay a rebate.
Much has been said about SFF's debt, but Mr Garden said unlike other meat companies, SFF carried and was paying all the company's debt, including debt inherited from its purchase of Richmond.
The interest bill in the year to August 31, 2009, was $23 million.
Earlier, SFF reported what Mr Garden called a challenging year, with a net operating profit of $43.4 million on income of $2 billion.
Removal of a one-off $37 million gain gave an actual operating profit of $5.1 million.
