At a meeting in Balclutha last night, 76.46% of eligible voters supported a constitutional change which the board of the co-operative hopes will raise up to $128 million of capital to repay debt, fund technology, and launch branded products and its integrated plate-to-pasture strategy.
Chairman Eoin Garden said the level of shareholder support indicated shareholders wanted changes to the way the meat industry did business.
SFF chief executive Keith Cooper said that achievement should not be underestimated and neither should the message it sent the meat industry.
The support reflects the level of concern and frustration meat producers have in the industry.
It was the second time in less than a year SFF shareholders have voted in excess of the 75% threshold needed for constitutional change.
Last September, they voted 75.2% in favour of a partnership with PGG Wrightson, a deal which collapsed due to the credit crisis.
Farmers are prepared for change.
The approval means shareholders can 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.
Those shares can be traded on the unlisted exchange if farmers elect to sell them outside the industry, but supplier shareholders will retain 60% of the voting rights.
The board will be reduced from 12 to eight, with five directors elected by farmers.
The chairman will be a farmer.
It was standing room only at the St Andrew's Church hall, with about 120 people attending last night's meeting.
Some critics of the structure voiced last-minute concerns about the impact on the co-operative structure and possible loss of farmer control, and questioned whether North Island suppliers would buy shares.
Mr Garden said there was no negative sentiment from North Island suppliers and he believed they would participate.
But there was unanimous support for SFF's market-led plate-to-pasture strategy, which links customers with consumers, and the repackaging and rebranding of its meat products.
Mr Garden said change was needed to ensure there was something for the next generation of farmers.
Unless shareholders changed now, all the fancy ownership structures and value of the co-operative ethos would not be worth anything without a profitable company and industry.
The industry was under pressure from banks, which told the SFF board earlier that, while the company was performing and profitable, it could not guarantee that foreign-owned banks would continue lending to the New Zealand meat industry.
If owners were not prepared to invest capital in their business, why should someone from the Netherlands want to put capital into the meat industry?Shareholders have until mid-September to apply for shares, which will be allocated later that month.
Later this year, new supply contracts will be offered and SFF branded meat will be launched in New Zealand supermarkets.
