According to Fonterra, it will start discussion with its farmer investors next week on the next stage of its suggested capital reorganization that would enable farmers to trade co-op shares among themselves.

A press release which has just been issued said, "The Fonterra Board and Shareholders' Council have voted to support the concept of Trading Among Farmers and agreed that it should go out for consultation".

Feedback from this process will be taken into consideration before any final plan is put to a farmer vote. Any suggestion would need 75% support of farmer shareholders voting.

Under the new scheme, the farmers would be able to purchase or sell their Fonterra shares among themselves, rather than buying or redeeming them through the co-op. The co-op will stay 100%farmer owned and controlled.

A previous effort to allow minority shareholdings from non-farmers was snubbed even before putting to a vote. This time the co-op is moving gradually, ensuring farmer support before any change is projected.

Today, invitations were mailed to Fonterra's 10,500 farmer shareholders for an exceptional television broadcast at 1pm on April 7.

Then, a succession of farmer meetings will be held around the nation the following week to talk about the 'suggested approach'.