The Dairy Industry Restructuring Act amendment bill has passed its third reading, paving the way for changes to Fonterra’s capital structure. The amendment bill also introduces wider measures to reduce long-term risk and increase transparency within the sector. The Flexible Shareholding is likely to commence in late March 2023, with a final implementation date to be confirmed with Fonterra’s interim results announcement scheduled for 16 March.
Agriculture minister Damien O’Connor said the bill helps ensure long-term sustainability and fair pricing in the market for farmers’ milk and also supports Fonterra’s shareholder mandate. O’Connor said the bill will set the right foundation for the overall long-term success of the dairy sector.