[go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/a/ags/jlcoop/56933.html
   My bibliography  Save this article

Sustainable Growth and Capital Constraints: The Demutualization of Lilydale Co-operative Ltd

Author

Listed:
  • Hailu, Getu
  • Goddard, Ellen W.
Abstract
Lilydale Co-operative Ltd was one of Canada’s largest and most geographically diversified co-operative poultry processors. In 2005, Lilydale voted to end its 65- year existence as a cooperative and converted to an investor-owned firm (Lilydale Inc.). The motivations for Lilydale’s organizational change are examined focusing on access to capital and using the sustainable growth model as the framework. For sustainable growth, a balance is required between increased actual sales and changes in financial management measures. For much of its history, Lilydale’s actual sales growth rate exceeded its sustainable growth rate. The firm may have been making financial decisions without considering all financial commitments, including increasing requirements to distribute equity to retiring members. Long-term debt was very high during the ten years prior to the decision to restructure the cooperative. Although the time period is short, since conversion Lilydale has had more reasonable growth rates.

Suggested Citation

  • Hailu, Getu & Goddard, Ellen W., 2009. "Sustainable Growth and Capital Constraints: The Demutualization of Lilydale Co-operative Ltd," Journal of Cooperatives, NCERA-210, vol. 23, pages 1-15.
    • Handle: RePEc:ags:jlcoop:56933
    DOI: 10.22004/ag.econ.56933
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/56933/files/Hailu.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.56933?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Nathan Smart & Brian C. Briggeman & Jesse Tack & Edward Perry, 2019. "Examining U.S. grain marketing and farm supply cooperatives’ sustainable growth rates," Agribusiness, John Wiley & Sons, Ltd., vol. 35(4), pages 625-638, October.
    2. Fulton, Murray & Larson, Kathy A., 2009. "Overconfidence and Hubris: The Demise of Agricultural Co-operatives in Western Canada," Journal of Rural Cooperation, Hebrew University, Center for Agricultural Economic Research, vol. 37(2), pages 1-35.
    3. Ian MacPherson, 2013. "Cooperative s concern for the community: from members towards local communities interest," Euricse Working Papers 1346, Euricse (European Research Institute on Cooperative and Social Enterprises).

    More about this item

    Keywords

    Agribusiness;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:jlcoop:56933. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/daksuus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.