Two of the country's largest co-operatives - dairy giant Fonterra and meat company Silver Fern Farms (SFF) - were at various stages of capital restructuring, and while Fonterra has not divulged its plans, both appeared to be going down the hybrid co-operative structure path.
Their motives were similar: a cash injection to strengthen their balance sheet and reduce the risk of redemption, or of shareholders selling their shares back to the company.
New Zealand Co-operatives Association chairman Peter Macdougall said companies could raise money through a bond float or restructure shareholding so suppliers had a greater financial commitment and therefore incentive to commit supply to their company.
"Where you don't have a lot of money invested, you are not inclined to look after your company," said Mr Macdougall, who farms a property at Millers Flat.
Fonterra chairman Henry van der Heyden yesterday on Radio New Zealand denied the dairy giant was considering a listing as part of fresh capital restructuring plans under consideration.
Two years ago, Fonterra proposed splitting its business in two - a supplier-owned co-op and a listed entity - but last year abandoned the proposal in the face of farmer opposition.
It has resurrected plans, but Mr van der Heyden has maintained a code of silence.
A spokesman said the board was talking to the Fonterra Shareholders Council and would then discuss its plans with its 11,000 supplier-shareholders.
The company yesterday confirmed the new option would be done in stages and there was no timeline.
Fonterra has three options: ask all farmers to stump up with cash; source it from outside investors; or, invite farmers who want to, to invest more.
With an average dairy farmer reporting a $150,000 deficit this year, spare cash was at a premium.
The other two options could create future tension between farmers wanting dividends on their investment and the milk price.
SFF proposes tradeable shares with those outside company supplier-owners, albeit with company control enshrined with suppliers.
Mr Macdougall said SFF should look at their structure without having a partial listing.
He said two sheep farmers supplying a similar number of animals to the Alliance Group and SFF co-operatives would have vastly different shareholding.
Alliance has a cap of 100,000 $1 shares and SFF a cap of 17,500 $1 rebate shares.
"They have got to get more capital out of shareholders," he said.
SFF chief executive Keith Cooper said that was what it was doing, but it also needed to reduce the redemption risk to the company, so it needed to create a market for the shares.
