Friday, 16 October 2015 10:59

Capital structure stifling growth

Written by Rural News Group

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Silver Fern Farms chief executive Dean Hamilton says its capital structure has held back growth.

Hamilton says the co-op doesn't have the right strategy to execute its pasture-to-plate strategy.

"We set out on a journey 12 months ago to raise new equity to fix situation once and for all," he told shareholders at a special general meeting in Dunedin today.

Hamilton says only 5% of SFF products are premium high value products.

He says the extra capital to be poured in by Chinese conglomerate Shanghai Maling will help SFF execute the strategy.

"The strategy is to drive more business up the value chain and increase returns and share it with qualifying suppliers."

Shareholders are voting on the Shanghai Maling proposal today.

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