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Fonterra is about to undergo its biggest restructuring since it was created almost a decade ago.
The change will allow trade shares among farmers and also let in outside investors, but it is not expected to affect the price of dairy products.
"This will have zero impact on the price of butter, zero impact on the price of cheese," says chairman Sir Henry van der Heyden.
"This is about the balance sheet of Fonterra."
With outside investors able to tap into NZ's dairy giant, Fonterra's position on the world market will be strengthened and dairy farmers hope their "white gold" will be even more profitable. They hope their vote today will push up the price Fonterra pays them for their milk.
Dairy farmers currently buy shares in Fonterra based on their milk production but if production dries up in years of drought, the company has to fork out hundreds of millions of dollars.
The new structure will increase the company's cash flow, allowing it to put money into new projects and products.
"Permanent capital helps us make those long term business decisions that strengthen our competitive position in the world market," says chief executive Andrew Ferrier.
Dairy farmers opposed a proposal to float the company on the sharemarket three years ago but the public can now invest although farmers will retain control.
Phil O'Reily from Business New Zealand is welcoming the move. "They have potentially allowed an opportunity for businesses and mums and dads to invest effectively in the milk price and I think that's a very good opportunity for New Zealanders."
The move will boost farmers' pay packets and the economy and the company is promising it won't hurt consumers.
And even though the restructure got the go ahead today, it's expected to take 15 months to implement meaning it will be some time before New Zealanders and foreigners can invest in Fonterra.
When it's opened up, investors won't be able to buy any more than 5% of Fonterra's shares and Ferrier made it very clear that dairy farmers will still have absolute ownership and influence over all decisions.
