PROJECTS

Livestock Improvement Corporation, New Zealand

The problem

New Zealand’s Livestock Improvement Corporation (LIC) is a farmer-owned and controlled biotechnology business that uses sophisticated breeding techniques to increase agricultural productivity. As LIC wanted to apply its expertise in new markets, it needed additional capital, but wanted to maintain farmer control.

How we helped

Castalia developed a hybrid share structure for LIC that retained the co-operative structure of farmer ownership and control but introduced an investment share. This allowed the farmer-customers of the business to retain control of governance, while each individual farmer could decide on his or her financial investment in the business, with a defined range. To enable farmers to trade with each other, we helped LIC to list on the New Zealand Stock Exchange.

Impact

The LIC investment shares are actively trading on the New Zealand stock exchange. LIC’s hybrid share structure has become a model for other dairy co-operatives seeking to combine their co-operative business structure with increased finance for new ventures.