With a 33% Minimum Holding

you’d only need to hold 1 share for every ~3 kgMS of milk supplied.  

Currently, it’s 1 share for every 1 kgMS of milk supplied.   


With a 4x Maximum Holding 

you could hold up to 4 times your milk supply in shares.  

Currently, it’s 2 times your milk supply. 

The Minimum Holding and Maximum Holding would continue to be determined based on a rolling three-season average (or relevant estimates where there is no average), as they are today.

We’d still keep the 1:1 Share Standard, which has been a feature of our Co-op for many years, as it is.

Voting rights would stay as they are now – based on both milk supply and equity in our Co-op, at a ratio of 1 vote per 1,000 kgMS of share-backed supply in the previous season.  This means they would reduce to the extent you choose to reduce your shareholding below the 1:1 Share Standard.   

The total number of shares on issue in the Co-op is intended to be within +/- 15% of milk supply, to support alignment of total shares with total milk supply.

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.

A capital structure with flexible shareholding would help to level the playing field with competitors, many of whom are foreign-backed and don’t require farmers to invest capital.

The Minimum Holding strikes a balance between providing a meaningful level of flexibility for those who need it, which is critical to maintaining a sustainable milk supply, while ensuring all supplying shareholders have some capital-backed supply.

Lifting the cap on share ownership would help to ensure that there is more capacity for other farmers to buy shares from those who want to sell.

The Heart of our Discussion

  • 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...