Farmers are all set to strengthen their position as the dairy co-operative has called them for increasing their stakes in Fonterra. They are allowed to buy up to 20 per cent extra shares in the co- operative at $4.52, fixed by Fonterra in a bid to raise funds worth $600 million for executing its expansion plans besides strengthen the balance sheet of the firm.

Tony Leggett from New Zealand Farmers Weekly articulated, "That would be equivalent to around about all farmers taking up half their offering of 20%."

Federated Farmers, in the meantime, hailed the decision and hoped that the move would prove beneficial for farm community as they would be able to buy half of the additional shares.

Lachlan McKenzie, the Chairman of Federated Farmers said that there is a need to inform farmers about the decision and they would also wait for milk projection for next year before making up their mind to purchase more shares.

Farmers need to make up their mind until January 21 for the first offer but they would be provided second option later this year.