Federated Farmers says most farmers are looking at Fonterra's change in strategy with cautious optimism.   

The dairy giant's signalled its intent to divest well-known brands such as Anchor and overseas brands Fonterra Oceania and Fonterra Sri Lanka.  

It wants to focus on producing ingredients and selling them to consumers and other businesses.  

Federated Farmers Dairy Chair Richard McIntyre told Mike Hosking that some are concerned about Fonterra's potential move away from value-added products.  

But he says they're also talking about investing more in innovation, so it'll be interesting to see the detail. 

LISTEN ABOVE 

• Fonterra divests overseas operations including Oceania, Sri Lanka
• Fonterra looks to sell global consumer business, including Anchor brand
• 'Surprising': Lincoln University Adjunct Professor on Fonterra's plan to sell Anchor, Mainland, other key brands