Dairy co-operative Fonterra will be holding the meeting of its board and senior management in Ashburton tomorrow for taking final decision on capital restructuring proposal and to work out farmer support for the co-operative.

Marlborough Federated Farmers dairy Chairman Bruce Richmond said, "If we bought those shares at $4.52 we were getting an 11 per cent return on investment, but now it's only 7 per cent."

There are total nine resolutions on the table. The firm will try to seek support from shareholders for allotting more shares at the meeting. Shareholder’s support would also be sought for allowing
constitutional amendment to legalize the prospective changes.

John Bluett, the Vice-chairman of Federated Farmers Dairy hopes overwhelming support of 80 per cent from stockholders against the required support of 75% in the meet for passing the resolution. He added, “If it doesn’t make it through, us an industry has to step back
and have a complete re-think.”

Meanwhile, Bay of Plenty shareholder Robin Barkla said that the move is unlikely to go down well with smaller farmers. He added, “Small farmers feel they don’t make a difference and that the pace of change is too quick.”