New dairy plants are expected to be a rarity if a projected decline in milk supply eventuates. Previous changes to the capital structure have taken a lot of time to get through,” Jarden analyst Arie Dekker said. Fonterra’s consultation document said placing trading back entirely in farmers hands could make a significant difference to the price of farmer shares. S&P also approved of Fonterra moving to ward off a potential decline in the milk supply. "Reduced outside investor participation means Fonterra farmers are the key buyers for farmers selling down."

Source: Stuff May 07, 2021 00:02 UTC