Fonterra shares are in a trading halt ahead of launching what they describe as  a “comprehensive consultation process”. The aim is to seek feedback from its farmer shareholders on changing its capital structure. Fonterra will  be making an announcement on Thursday and the trading halt on its shares will be in effect till Friday allowing shareholders a day to review and consider the package before trading recommences. In 2019 Fonterra announced a ‘back to basics’ strategy after reporting a financial loss of over $600 million due to a disastrous debt-funded global expansion plan. It has recovered well but needs a fit-for-purpose capital structure for the future. At the moment only farmer shareholders may directly invest in Fonterra. The Fonterra Shareholders Fund is open to all investors and also provides a mechanism for farmer shareholders to sell their shares. Farmers have long opposed the idea of outside investors directly investing in the co-operative. The Co-op says it remains in a strong financial position and this process will not affect the co-operative’s ability to operate.