Proposals by Fonterra to start farmer share trading are getting a positive reception in the paddock, according to the dairy giant cooperative.

Farmers currently buy and sell shares from Fonterra based on their level of production.

But under the new proposal they would be able to trade among themselves - a move Fonterra said would stop the redemption risk of money washing in and out of the co-operative.

Fonterra chairman Sir Henry van der Heyden said 74 meetings had been held across the country last week involving about 2300 farmers, most of whom gave the company positive feedback.

During the next two weeks smaller meetings will be held with farmers before another major round in May.  A special meeting could be held in June or early July, with Fonterra needing 75 per cent support from farmers.

The earliest a share trading system could be up and running would be June  2011.