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Farmer shareholders of New Zealand dairy co-operative Fonterra have overwhelmingly approved a capital return plan tied to the proposed sale of its global consumer business, marking a significant step in the group’s strategic reshaping.
At a virtual Special Meeting on Wednesday (19 February 2026), 98.85% of votes cast supported the scheme of arrangement that would enable the co-operative to return NZ$2.00 per share to shareholders and unit holders.
The payment remains contingent on completion of the divestment of the Mainland Group to French dairy giant Lactalis for approximately $2.3 billion.
The strong shareholder endorsement signals continued farmer support for Fonterra’s multi-year effort to streamline its portfolio and concentrate on higher-return ingredients and foodservice channels.
The deal was also approved by the Australian Competition and Consumer Commission (ACCC) back in July 2025,.
For B2B dairy and ingredient buyers, the move reinforces expectations that Fonterra will further prioritise its core milk processing and value-added ingredients businesses rather than branded consumer products.
For the wider dairy industry, the divestment could reshape competitive dynamics in several categories:
Ingredients focus: A slimmer Fonterra may accelerate investment in functional dairy proteins, fats and foodservice solutions.
Consumer brand shift: Lactalis would strengthen its branded dairy footprint in key markets through the Mainland portfolio.
Milk pool allocation: The co-operative’s capital discipline could influence farmgate milk pricing strategy and milk utilisation priorities.
The capital return record date will be confirmed once the divestment completes, with payment scheduled shortly afterwards.
The transaction is expected to complete in the first quarter of calendar 2026, subject to regulatory clearances and operational separation of the businesses.
