“This is a great outcome for our co-operative,” said Blue Read, chairman of the Council. “Successful implementation of Trading Among Farmers will give Fonterra a stable platform while making sure the business remains owned and controlled by farmers.

“Shareholders have delivered a strong and decisive mandate that will give the business certainty,” Mr Read said.

“There is now a raft of design detail to be developed. The mechanisms yet to be put in place for the operation and governance of the Shareholders Fund and the formation of an efficient and effective market for Fonterra shares will be defining.”

These initiatives will bring a new set of stakeholders into the dairy arena and there are preconditions that must be met before Trading Among Farmers can be introduced. The preconditions have been developed so that the interests of Fonterra farmers and all stakeholders can be safeguarded.

Addressing Fonterra shareholders at the co-operative’s Special Meeting today Mr Read said “Farmers are at the heart of Fonterra. The Council is confident this proposal will ensure our co-operative continues to be farmer owned, farmer controlled and farmer focused.

“Trading Among Farmers sets us up well for the future. It’s now time to roll up our sleeves and make it happen.”