Fonterra's farmer shareholders have granted its approval for a vote by the co-operative's 10,000 members concerning permission to share trading between farmers.

"The trading among farmers proposal provides a unique opportunity to move the co-operative and New Zealand dairying forward," Fonterra Shareholders' Council Chairman, Blue Read posted today.

It is revealed that share trading among farmers would transfer the redemption risk from the cooperative back to farmers individually.

Farmers have already given a green light to two initial steps which enabled them to acquire more shares than required via their production and changed the way shares were valued to recognize the market which was limited to the cooperative's farmer owners.

Now the third step under the capital refurbish will require 75% approval of constitutional change from shareholders to vote at a special meeting slated to be held on June 30.

It is outlined that investment in Fonterra dividend streams could be good for retiring farmers and sharemilkers, who supply Fonterra, however, as of now it depends on the shareholding of the land-owning farmer for their access to dividends.

A "shareholders fund" could be established to acquire the right to get future dividends and share price gains from farmers seeking extra cash.