Fonterra shareholders look set this week to approve the first two of three steps of its capital restructuring proposal, but resistance to the third stage, which will be considered next year, is already evident reports The ODT. Farmer attention has already being drawn to that contentious third step, the trading of shares among farmers, which will not be debated at Wednesday's annual meeting in Ashburton. Company and farming leaders appear confident the initial vote on the first two stages - strengthening the share structure and restricting the value of company shares - would get the required support of 75% of voters. Some have questioned whether Fonterra would achieve its goal of attracting extra capital from shareholders, with farmers more likely to use income from higher milk prices to reduce debt and restore cashflow than buy extra shares. Fonterra chairman Sir Henry van der Heyden said that at recent shareholder meetings farmer focus had been on the third stage of the plan, which he said he had not fully considered or was one he wanted to discuss until after Wednesday's meeting. Sir Henry said Ashburton's meeting was "fundamental" in the life and development of the dairy co-operative. "It's probably in the same ball park as when Fonterra was formed."
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