Fonterra has announced the changes it has made to step one of its capital restructuring proposal that will be voted on at its annual meeting on November 18. Here are the changes: "Shareholders who buy shares in the December transition and back them with production will receive peak supply entitlements for those shares at half the normal rate. This will ensure those farmers who contribute capital in the December transition to support growth in this season's supply, and hold those shares for half a season, have that appropriately recognised in their Capacity Adjustment for the current season. This change makes the proposal fairer for growing suppliers." "There will be an extended period over which shareholders will be allowed to buy dry shares at the end of the season. The Board's policy from next season onwards will be to allow share purchases from the beginning of the season until the end of September, a period when cash flows are generally highest." Here is the full statement from Fonterra:

Fonterra is today mailing out to shareholders the final proposal for a new capital structure that will be voted on at the annual meeting in Ashburton on November 18. This follows an extensive shareholder consultation process that included 77 meetings attended by Directors, Shareholders Councillors and Area Managers, and smaller regional "shed" and "on-farm" meetings throughout the country. Following consultation, some changes have been made to the original proposals. The changes relate to Step One. Shareholders who buy shares in the December transition and back them with production will receive peak supply entitlements for those shares at half the normal rate. This will ensure those farmers who contribute capital in the December transition to support growth in this season's supply, and hold those shares for half a season, have that appropriately recognised in their Capacity Adjustment for the current season. This change makes the proposal fairer for growing suppliers. There will be an extended period over which shareholders will be allowed to buy dry shares at the end of the season. The Board's policy from next season onwards will be to allow share purchases from the beginning of the season until the end of September, a period when cash flows are generally highest. Step Two remains unchanged. Step Three, farmer trading, will be the subject of a separate consultation process next year. Shareholders will have the opportunity to discuss the final proposal and the changes with Directors at a further round of meetings to be held between November 9-11.