A change in the capital structure of the Dunedin meat co-operative has been voted for by the shareholders of Silver Fern Farms (SFF).

A constitutional change was supported by 76.46% of eligible voters at a meeting in Balclutha last night. The board of the co-operative hopes that the change will raise up $128 million of capital to repay debt, fund technology, and release branded products and its integrated plate-to-pasture strategy.

According to Chairman Eoin Garden, the level of shareholder support has reflected that the shareholders wanted changes in the way the meat industry did business.

The achievement should not be underestimated and neither should the message it sent to the meat industry, expressed SFF chief executive Keith Cooper.

The proposal for change is being well-accepted by farmers. It won't be wrong to say that the approval will allow the shareholders to voluntarily exchange rebate and supplier investment shares for a new class of ordinary shares, and then take up a two-for-one rights issue as well as a bonus one-for-four share issue.

Furthermore, if farmers elect to sell those shares outside the industry, then those shares can be traded on the unlisted exchange; however, supplier shareholders will retain
60% of the voting rights.

It has appeared that the number of board members will be reduced from twelve to eight; with five directors to be elected by farmers; and, most importantly, a farmer will be elected as the chairman.

The last night's meeting was attended by standing room only at the St Andrew's Church hall, with about 120 people.