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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.