In a surprise announcement, Mr Ferrier yesterday said he would resign later this year from the position he has held for eight years, but added he would stay until the right person had been found.
He planned to continue living in New Zealand but wanted to spend more time with his family, visit Canada and pursue business interests.
Fonterra chairman Sir Henry van der Heyden heaped praise on his chief executive, saying he had helped build the co-operative into a very successful company.
''Andrew has always placed great emphasis on finding the right people, building a strong team and on succession planning,'' he said.
That succession process started nearly two years ago and an international search began at the end of last year.
In September 2003, Mr Ferrier inherited a company in strife, with the acrimonious and sudden resignation of inaugural chief executive Craig Norgate and a board considered dysfunctional.
Those dark days appear well behind Fonterra, which has grown substantially under Mr Ferrier's tenure.
There was initially some suspicion among Fonterra shareholders about the appointment of a man with a sugar background, but they soon warmed to his approachable and open style.
Mr Ferrier realised there was a limit to the amount of milk New Zealand could produce but also an insatiable international appetite for dairy products, so he initiated a strategy of sourcing and processing milk overseas, which was then sold under Fonterra's umbrella.
This saw Fonterra source milk from Australia, establish production factories and partnerships using its own milk powder around the world, and launch its own branded products in selected markets.
Mr Ferrier also weathered criticism when he launched globalDairyTrade, a monthly internet auction of dairy products, which farmers initially blamed for forcing prices down.
The auction is now held every two weeks and is expected this year to handle 530,000 tonnes, or 24%, of New Zealand's dairy products.
Today, Fonterra employs 15,800 people, is the world's largest dairy exporter and active in 140 countries and is responsible for a third of global cross-border trade in dairy products.
Its growth has been dramatic.
In 2003, Fonterra earned revenues of $11.8 billion from 1.202 billion kg of milk solids. By 2010, revenue had grown to $16.7 billion from 1.286 billion kg of milk solids.
Fonterra Shareholders Council chairman Simon Couper said Mr Ferrier arrived at a time when the company needed uniting, and he had succeeded in doing that.
Federated Farmers dairy section chairman Lachlan McKenzie Fonterra's bright future was Mr Ferrier's legacy,He also thanked Mr Ferrier for giving plenty of notice of his intention to resign.
''This will lead to an orderly managerial transition as the board seeks the very best candidate from around the world.''
