Global Dairy Update January 2017

1
GLOBAL DAIRY
UPDATE
JANUARY 2017
KEY DATES
Late March 2017
Interim Results
Announcement
1 June 2017
Measurement Date for Share
Standard 2017/18 Season
Late September 2017
Annual Results
Announcement
1 December 2017
Compliance Date for Share
Standard 2017/18 Season
• In December the significant decrease in
Fonterra New Zealand milk collections
continued, down 5% on the same month
last year.
• Milk production followed the same trend
as last month with continued decreases in
New Zealand, Australia and Europe while
United States maintained growth.
To view the latest Fonterra
GlobalDairyTrade results –
To view charts that illustrate
year-on-year changes
in production, exports
and imports –
To view the latest on
Fonterra milk collection –

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OUR MARKETS
FONTERRA MILK COLLECTION 2016/17 SEASON
NORTH ISLAND
Decrease for the season from
1 July to 31 December
8
Decrease for the season from
1 June to 31 December
AUSTRALIA
2
SOUTH ISLAND
%
To view a table that shows our
detailed milk collection in New
Zealand and Australia compared
to the previous season –
Decrease for the season from
1 June to 31 December
Decrease for the season from
1 June to 31 December
76
%%%
NEW ZEALAND MILK COLLECTION
VOLUME M LITRESDAY
JUNJULAUGSEPOCTNOVDECJANFEBMARAPRMAY










Fonterra’s milk
collection across
Australia for the six
months to 31 December
reached 65 million
kgMS, 7.6% lower than
December last season.
In December milk collection
was 12 million kgMS, 1%
ahead of the same month
last season.
North Island milk
collection in December was
111 million kgMS, 6% behind
December last season.
South Island milk
collection in December was
75 million kgMS, 3% behind
December last season.
NEW ZEALAND
Fonterra’s milk collection
across New Zealand for
the seven months to
31 December reached
881 million kgMS, 5.5%
lower than the same
period last season.
This resulted in December
collections of 186 million
kgMS, 5% behind the same
month last season.

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OUR MARKETS
FONTERRA GLOBALDAIRYTRADE RESULTS
RENNET CASEIN
3.7
1.6
SMP
7.7
%
%
BMPCHEDDAR
1.8
%%
%%
%
Fonterra GDT sales
by destination:
Dairy commodity prices
and New Zealand
dollar trend
Fonterra GDT results at
last trading event
3 January 2017:
The next trading event will be held on 17 January 2017. Visit www.globaldairytrade.info for more information.
To view more information,
including a snapshot of the
rolling year-to-date results –
LATEST AUCTION
FINANCIAL
YEAR-TO-DATE
USD 6,234/MT
USD 3,894/MTUSD 3,096/MTUSD 2,705/MT
5.1
Change in Fonterra’s
weighted average product
price from previous event
%
Fonterra’s weighted
average product price

(USD/MT)
Fonterra product quantity
sold on GDT
3,559
USD
21
BUTTER
0.4
7.70.3
AMFWMP
USD 4,308/MT
USD 3,294/MTUSD 5,352/MT
NORTH ASIA (INCLUDING CHINA)
SOUTH EAST ASIA
MIDDLE EAST AND AFRICA
LATIN AMERICA
OTHER
21,266
MT
316,280
MT
GDT PRICE INDEXNZDUSD SPOT RATE
JAN OCT MAR
MAY
AUG
OCT
DEC
MAR MAY AUG JAN






, 
.

.

.
.
.
.
PRICE INDEX
NZD  USD
000’ MT

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SUPPLEMENTARY INFORMATION
Global Dairy Market
The charts on the right
illustrate the year-on-year
changes in production,
exports and imports for a
range of countries that are
important players in global
dairy trade.
The absolute size of the
bars represents the change
in production, exports or
imports, relative to the same
period the previous year.
PRODUCTION
AUSTRALIA
UNITED STATES
NEW ZEALANDEU
NOV JUN MAY APR JAN DEC AUG OCT SEP JUL FEB MAR 
LIQUID MILK M LITRES














,


,


NOTE: Data for EU and Australia to October and New Zealand and US to November.
NOTE: Data for EU to September; New Zealand, US and Australia to October.
NOTE: Data for Asia, Middle East and Africa and Latin America to September, China to November.
SOURCE: Government milk production statistics/GTIS trade data/Fonterra analysis.
EXPORTS
AUSTRALIA
UNITED STATES
NEW ZEALANDEU
JUN MAY APR FEB JAN DEC NOV OCT SEP AUG JUL MAR 
MT ’
s







IMPORTS
MIDDLE EAST & AFRICALATIN AMERICA
ASIACHINA
OCT MAY APR JAN NOV DEC JUL SEP AUG FEB MAR JUN 
MT ’
s










5
Fonterra milk
production
The table on the right
shows Fonterra milk solids
collected in New Zealand
and Australia compared
to the previous season.

SUPPLEMENTARY INFORMATION
MILK COLLECTION
(MILLION KGMS)
DECEMBER
2016
DECEMBER

2015
MONTHLY
CHANGE
SEASON-
TO-DATE
2016/17
SEASON-
TO-DATE
2015/16
SEASON-
TO-DATE
CHANGE
Total Fonterra
New Zealand
186.2195.6(4.8%)881.0932.4(5.5%)
North Island111.1118.2(6.0%)553.1597.6(7.5%)
South Island75.277.4(2.9%)327.8334.8(2.1%)
Fonterra Australia12.312.20.8%65.370.7(7.6%)
Fonterra GDT results
This table provides more
information on the latest
results, including a snapshot
of the year-to-date results.
Fonterra GDT Results
This chart shows Fonterra
GDT prices and volumes over
the past 12 months.
LAST TRADING EVENT
(3 JANUARY 2017)
YEAR-TO-DATE

(FROM 1 AUGUST 2016)
Quantity Sold on GDT
(Winning MT)
21,266316,280
Change in Quantity Sold on GDT
over same period last year
(12.7%)(11. 0%)
Weighted Average Product Price
(USD/MT)
3,5593,125
Change in Weighted Average
Product Price over same period
last year
43.3%31. 7%
Change in Weighted Average
Product Price from previous event
(5.1%)–
WEIGHTED AVERAGE PRICEQUANTITY SOLD
JAN
DEC
AUG
JUL
MAR
APR
MAY
JUN
NOV
OCT
SEP
FEB

,

,

,
,
,

,

,
,
,
,
WEIGHTED AVERAGE PRICE USDMT
QUANTITY SOLD  MT

6
AMF
Anhydrous Milk Fat.
BMP
Butter Milk Powder.
DIRA
Dairy Industry Restructuring
Act 2001 (New Zealand).
Farmgate Milk Price
The price for milk supplied in
New Zealand to Fonterra by
farmer shareholders.
Fluid and Fresh Dairy
The Fonterra grouping
of fluid milk products
(skim milk, whole milk
and cream – pasteurised
or UHT processed),
concentrated milk products
(evaporated milk and
sweetened condensed milk)
and yoghurt.
Reference Products
The dairy products used
in the calculation of the
Farmgate Milk Price, which
are currently WMP, SMP,
BMP, butter and AMF.
Season
New Zealand: A period
of 12 months to 31 May
in each year.
Australia: A period of
12 months to 30 June
in each year.
SMP
Skim Milk Powder.
WMP
Whole Milk Powder.

GLOSSARY