Fonterra Co-operative Group announced a strategic shift to enhance its global position as a provider of high-value, innovative dairy ingredients.

The shift includes exploring divestment options for its consumer business globally and its integrated operations in Fonterra Oceania and Fonterra Sri Lanka.

"This move sets up the Co-op to grow long-term value for farmer shareholders and unit holders," said Chairman Peter McBride.

The proposed divestment involves businesses using about 15% of the Co-op's milk solids, contributing roughly 19% of operating earnings in the first half of FY24. The divestment process is expected to take 12 to 18 months.

The Fonterra Shareholders' Fund (ASX:FSF) allows investors to invest in the performance of Fonterra Co-operative Group.