Fonterra Cooperative Group will tighten the rules for the proposed Trading Among Farmers (TAF) scheme after feedback from the Shareholders' Council and advisers to control the size of the fund and safeguard 100 per cent ownership of the world's biggest dairy exporter.
The farmer-owned cooperative yesterday agreed to the changes at a board meeting.
Shareholders are to vote again on TAF at a special meeting on June 25.
Though they approved the scheme in principal two years ago, next month's meeting gives them an opportunity to renew Fonterra's mandate for the biggest capital restructuring since it was created a decade ago.
"It has always been acknowledged that the size of the Fonterra Shareholders' Fund has to be managed carefully to ensure 100 per cent farmer control and ownership is protected," chairman Sir Henry van der Heyden said.