Fonterra says damage to its overseas reputation has pushed it to hold a fresh vote on plans to allow share trading between farmers.
In 2010, Fonterra farmers voted overwhelmingly in favour of the Trading Among Farmers (TAF) scheme that allows farmers cash in shares which are then held in a fund that outside investors can buy into, giving them dividends and income but no voting rights.
But fears have emerged that investors could pressure Fonterra to lower milk payments to farmers to drive up their own share of profits.
Fonterra says that has unnerved some of its overseas partners and it now needs a fresh vote to unify shareholders.
Chairman Sir Henry van der Heyden says the board is still working on the share trading plan.
Sir Henry told Radio New Zealand's Checkpoint programme on Monday the board will make a recommendation to farmers on the proposals in time for the vote on 25 June.
"Unless we can give 100% ownership and control (to farmers), you'll not be getting a recommendation of the board - and that's the guarantee we gave our farmers when they voted in
June 2010."
Lachlan McKenzie, a Rotorua farmer and former Federated Farmers dairy chair, opposes trading shares among farmers.
Mr McKenzie told Checkpoint he expects farmers to not only vote it down in June, but to demand big changes within Fonterra.
"They voted yes for TAF, but now they have concerns, particularly around the shareholders' fund - the fact that we effectively will have an 'A' share and a 'B' share, and that the Government's legislation that is before the House at the moment is demanding that we sell a minimum of eight percent of our equity to outside investors."
