Silver Fern Farms Co-operative’s new shareholder benefits programme has a suite of incentives designed to reward shareholders and encourage the supply of quality livestock to Silver Fern Farms Limited says chairman Rob Hewett.
“The shareholder benefits programme covers how the co-operative intends to distribute future dividends to all shareholders plus additional benefits to shareholders who also supply”, he says.
“We believe there is significant long-term value to be gained for all shareholders by encouraging the supply of quality livestock to Silver Fern Farms Limited and for suppliers to be shareholders.
“A strong Silver Fern Farms with a stable and loyal livestock supply base is better able to grow value with customers in global markets. This generation of value is of benefit to our co-operative as a sustainably profitable Silver Fern Farms returns dividends for our co-operative to distribute to our shareholders.”
The co-operative intends, subject to annual Board approval, to make two annual distributions; a dividend distribution across all ordinary and rebate shares and a patronage reward distribution, which will pay an amount to qualifying livestock supplying shareholders.
“We believe the regular distribution of a dividend to co-operative shareholders combined with a patronage reward to supplying shareholders will encourage further loyal supply over time and will generate demand for shares from non-shareholder suppliers and under-shared suppliers.”
In addition to distributions, shareholder suppliers will receive other shareholder supply benefits.
“In conjunction with Silver Fern Farms Limited, we have already started to introduce preference on processing space, preferential access to value-added programmes, governance development and invitations to events like our farmer conference and international market trip. These initiatives have been well received.”
Rob Hewett stated, “Our primary focus is to maximise the value of our 50 percent ownership of Silver Fern Farms Limited.”
The Co-operative has also launched a new website www.silverfernfarms.coop.
“Information specific to our Co-operative is now on silverfernfarms.coop. We are the first New Zealand food co-operative to take up the internationally recognised .coop domain name, which we’re proud of.
“The site is home to our information including our constitution, shareholder rewards programme, Annual Reports, our governance development programmes and investor information.”
Silver Fern Farms Limited (the operating company) will continue to have its own www.silverfernfarms.com website.