As per the media reports, the 20,000 farmer-shareholders in the meat co-operative Silver Fern Farms have been asked to invest extra capital, partially to fund its plate-to-pasture integrated marketing plans.

A bonus share issue is being planned by Silver Fern, in order to raise $80-$128 million, in order to support its strategic initiatives and to strengthen its balance sheet.

It was specified by Chairman Eoin Garden, “We require further investment into market-based supply contracts, processing and technological product development, and business partnerships that add value to non-core activities.”

After Craig Norgate's rural services company, PGG Wrightson, collapsed in November last year, the co-operative missed out on a $220 million cash injection.

It has been learnt that rebate shares and investment shares, which would be issued to the farmers, would be converted to a new, tradable class of ordinary stock.

A support from 75% of shareholders is required for the proposal to come through; and farmers who are participating will be able to subscribe for up to two $1 shares for each of the shares they already hold. Furthermore, a cap of 5% of the issued shares has been placed on individual stakes.

“The issue price would be payable in cash or deducted from livestock payments for up to three years. Farmers who take up the offer will also be entitled to one bonus share for each four held,” said Garden.