Fonterra is expected to urge cooperative members seeking their support for farmer-to-farmer share trading, despite of relying on the cooperative to buy back shares from farmers, cited to push it out on the crucial third stage of its latest capital restructure proposal.

On Wednesday it is revealed to make a formal announcement of the proposal and frame measures in which such share trading might be positioned, before initiating consultation on the details.

Fonterra requires a 75% approval from the farmers among its 10,500 shareholders who vote, as the proposals require constitutional change.

Fonterra originally proposed in 2007 opening access to its shares for the outside investors, with cooperative members possessing a controlling stake, however, the idea was suppressed by farmers concerned about the potential for losing control.

Farmers have already decided to permit cooperative members to possess shares equivalent to over 120% of their milk production, instead of 100%, and for farmers to collect a dividend.

Now the farmers have to be coaxed regarding the advantages related to only selling their shares to an interested buyer, rather than the cooperative itself.