Capping the Fonterra Shareholders’ Fund (Fund) and moving to a farmer-only market.  

With a capped Fund, shares would not be able to be exchanged into units in the Fund on a day-to day basis, and the Board would retain its current rights to regulate this process. The overall limit on the size of the Fund would be reduced from 20% to 10% of total shares on issue. This recognises that the Fund size, which is currently around 6.7% of total shares on issue, could change from time to time subject to the overall limit.

Having the Fonterra Shareholders’ Market (FSM) operating as a farmer-only market means that our farmer owners would set the prices at which they buy and sell shares, without the traded price being influenced by external investors.

We would allocate up to $300 million to support liquidity in the FSM as farmer owners transition to the new structure.

Why we need to change

Providing more flexibility needs to be combined with making changes to the Fund in order to protect farmer ownership and control.

Capping the Fund enables our Co-op to maintain a stronger balance sheet compared to buying back the Fund, giving us more options to support liquidity in the FSM. 

The Fund and unitholders would, however, remain an important part of our Co-op.  The Fund would continue to provide a means by which non-dairy farmers can invest in the future of our Co-op.




  • Increased Flexibility

  • Capped Fund

  • Future Owners

  • Extended Exits

  • Easing Entry

Giving all supplying farmer owners more flexibility in the number of shares they hold.

Why we need to change

Farmers leave for different reasons, but one of the most influential ones is the level of compulsory investment that's required to be part of our Co-op....

Capping the Fonterra Shareholders' Fund (Fund) and moving to a farmer-only market.

Why we need to change

Providing more flexibility needs to be combined with making changes to the Fund in order to protect farmer ownership and control...

Creating a more inclusive pathway to becoming a Co-op member where sharemilkers, contract milkers and farm lessors could buy and sell shares as associated farmer owners.

Why we need to change

You've told us that providing pathways for future owners to become part of our Co-op is important to recognising the critical role they play in our industry...

Providing greater choice about how long farmer owners retain an investment in the Co-op after they cease supply.

Why we need to change

We're aiming to recognise the impact on our existing farmer owners in moving to a restricted market by giving them a longer timeframe to sell...

Easing entry provisions to allow new entrants (or existing supplying farmer owners who have a material increase in milk supply) six seasons to achieve their 33% Minimum Holding.

Why we need to change

This would provide new suppliers with a similar timeframe to share-up to the current Share-Up Over Time contracts...