Fonterra is on track to launch Trading Amongst Farmers (TAF) by the end of this year, chairman Sir Henry van der Hayden says.

The scheme will allow farmers to trade Fonterra shares among themselves, reducing the `redemption risk' the company faced when it had to pay back farmers whose milk production had dropped.

Outside investors will be able to take part in the scheme through a special fund which will see them benefit from any dividends shares earn, but they will have no Fonterra voting rights.

There has already been a level of interest in the fund from investors both on and off-shore and Fonterra has held meetings to help inform them about the company, says Sir Henry.

'Fonterra may not be that well known off-shore, except as a brand name. At a time of concerns about food security and food quality, a company like Fonterra has a good deal of appeal.”

When the scheme went to the vote earlier this year, it was passed by a majority but around a third of farmers voted against it. Sir Henry says he believes most farmers now support the scheme.

'Most of the farmers I talk to are saying ‘just get on with it'. Obviously not all are happy but generally in this industry, once a decision is made, farmers get behind it.”