The proposal, following a failed attempt last year, will seek 75 percent grower support for the change of structure to proceed.

It would see company limited by shares, and the new proposal is hoped to alleviate former concerns that non-growers could gain too much control of Mackay Sugar.

Mackay Sugar chairman Eddie Westcott said they had responded to grower concerns aired in surveys following last year’s attempted conversion.

"We know the main reasons for Members not supporting the 2007 conversion proposal were the perceived loss of control of the company through non grower shareholders having voting rights, a general lack of confidence in the future of the industry, financial concerns within the cooperative and a view that further information was needed to allow members to support the restructure.

"The board has sought to address these concerns."

Last year’s bid fell short by just 10pc of the required support.

Mackay Canegrowers chairman, Paul Schembri, said the decision was now a matter for individual shareholders to determine.

"There were two issues that concerned growers in relation to the last proposal," Mr Schembri said.

"One is in relation to the impact of dry shareholders, which are growers who have ceased to produce cane but still had equity or investment shares in the company.

"The other was the issue of ownership and control.

"There is always a concern by growers that in the fullness of time will the company be owned by people or growers whose interests are aligned with the cane growing interests of the region.

"This second proposal is an improvement on the first proposal, but I need to stress that this is ultimately an issue for shareholders to determine."

Mr Westcott said the new structure was crucial if Mackay Sugar was to build a more profitable future, with the current cooperative arrangement restricting the ability to fund projects such as cogeneration.

"We have endured low raw sugar prices, highly variable cane tonnage, and escalating farm and milling input costs that appear to be out of control," Mr Westcott said.

"We must expand our income base beyond reliance on sugar production.

"If we continue to operate the business in the current manner, then in the long term the risk is that Mackay Sugar’s income base and the income base of its grower suppliers will continue to shrink."