“Today our farmers have agreed,” he said.

“Changing our capital structure is the most important decision we as farmers have made in almost a decade.”

But Fonterra will have to negotiate with the government to get the changes through.

In a letter to the company last month, Agriculture Minister Damien O’Connor said “it would be difficult for the government to support an amendment to DIRA to facilitate the proposals”.

“The current proposals envisage a legislative change to remove key mechanisms that risk weakening performance incentives on Fonterra,” he said.

“Without alternative measures, I am not yet assured that these proposals would deliver the best long-term outcomes for farmers or the dairy sector as a whole.”

Mr McBride said he believed Fonterra and the government were “philosophically aligned”.

“The strong mandate we received today will support our conversations with the government as we continue to work together to find a mutually acceptable outcome,” he said.

The new shareholding structure will come into effect once the board is satisfied that any steps necessary for implementation have been (or will be) completed.

The co-operative is aiming to implement the changes as soon as possible from the beginning of next season.