The size of Fonterra's 13-member board is not about to shrink.

But the message that many farmer shareholders want change was evident at the co-operative's annual general meeting.

International volatility continues to be a challenge says Fonterra CEO Theo Spierings.

The remit by former directors Colin Armer and Greg Gent that board numbers be cut to nine failed to gain the 75 per cent support required to change the co-op's constitution, but certainly sparked debate.

Board chairman John Wilson told the close to 400 shareholders at the meeting at Fonterra's Waitoa UHT plant on Thursday, that the board recommended voting against the remit and the same advise was given by Duncan Coull, chairman of Fonterra Shareholders' Council.

A number of farmers spoke to the remit, with those against expressing concern at its proposal the whole board stand for re-election at the end of each term, instead of by rotation as is currently the case.

'Throwing out the entire elected board at one time is reckless,” one famer said.

Another said all parliamentarians were voted for every three years and if that democratic system was good enough for governing a country, it should be good enough for Fonterra.

Peter Jensen, farmer from Tauranga congratulated Colin and Greg on bringing forward the remit and promoting the debate.

'It's clear from the numbers that the remit won't get the 75 per cent needed.”

He called for Fonterra to involve its shareholders in the drafting of a new governance proposal before presenting them with a final paper on the issue.

Northland famer Bill Guest says even if the remit did not achieve the required 75 per cent support, it had started a debate and some action needed to be taken.

Fonterra needs 'to take on board what is happening. Suppliers are going broke. The board needs to earn its money and save suppliers”.

In putting the remit Greg and Colin say their aim was for a smaller Fonterra board which would respond to market changes more quickly and efficiently.

Earlier in the meeting shareholders voted on a remit to retain the board's remuneration at the current levels of $405,000 for chairman, $165,000 for deputy chair and $31,000 for board members per annum.

John Wilson told the meeting reviewing the co-op's governance structure is among his three priorities for the coming year, along with lifting the dairy pay out and driving higher returns for Fonterra.

A review of the governance structure had been put on hold in recent years while the company focused on maximising returns and cutting costs in the face of volatile market conditions.

John is disappointed Fonterra only came third highest in pay outs to farmers by New Zealand dairy companies.

Fonterra has forecast a farmgate milk price of $4.60 per kilogram of milk solids and a cash dividend of 35-to-40 cents per share for a total pay-out of $4.95/kgMS to $5/kgMS.

Fonterra CEO Theo Spierings told the meeting international volatility continues to be an issue, heighted by the terrorist attacks in Paris earlier in November and the shooting down of a Russian fighter plane by Turkish forces.

However, when the winds of change are blowing there are often opportunities and Theo says the company's significant investments both on and off-shore in recent years put Fonterra in an excellent position to take advantage of those opportunities.

Fonterra's ambition, says Theo is 'to build a globally relevant co-op that is making a difference to the lives of two billion people by 2025”.