Fonterra's board has the mandate to go ahead with its Trading Among Farmers (TAF) plan, after getting the final tick of approval from the Shareholders' Council, the body representing its 10,500 farmer owners.
The farmers gave their support in June, with a two-thirds majority vote.
It will allow farmers to trade shares among themselves and permit outsiders to invest in the dividend earnings from shares that farmers can deposit in a fund.
The Fonterra board also had five pre-conditions that needed to be met, the last of which was getting the support of a majority of the Shareholders' Council.
That final hurdle has been cleared with the council voting 97% in favour, after a two year review process.
Fonterra says it's on track to launch Trading Among Farmers in November, provided market conditions are right.
It will also be giving farmers another opportunity to approve constitutional changes lowering the cap on the proposed fund for outside investors.
The vote on that in June did not reach the 75% majority required for constitutional changes.