Global Dairy Update December 2017

1
GLOBAL DAIRY
UPDATE
DECEMBER 2017
KEY DATES
28 February 2018
Deadline for Application to
Supply Fonterra
Late March 2018
FY18 Interim Results
Announcement
Late May 2018
Q3 Business Update
Announcement
1 June 2018
Measurement Date for Share
Standard 2018/19 Season
• Demand for dairy remains strong in China
and Asia. Middle East and Africa and Latin
America imports decline.
• Dairy exports from New Zealand and the
USA continue to decline. Export growth from
the EU increasing.
• Further increase in monthly European
milk production. New Zealand production
improved in November, however continues
to be impacted by weather.
• In November, Fonterra New Zealand milk
collection increased 3% to 199 million kgMS
and Fonterra Australia milk collection
increased 28% to 17 million kgMS.
• 2018 first quarter business update.
• Forecast Farmgate Milk Price for the 2017/18 season reduced
to $6.40 per kgMS.
• Milk collection forecast reduced to 1,525 million kgMS, in line
with last season.
• Forecast earnings guidance of 35‑45 cents per share
announced following the Danone arbitration decision.
• Fonterra’s first Sustainability Report released.
• Planting the Ashburton Hakatere River Trail.

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To view a chart that
illustrates year‑on‑year
changes in imports –
2
OUR MARKETS
GLOBAL IMPORTS
DEMAND FOR DAIRY
REMAINS STRONG
IN CHINA AND ASIA.
MIDDLE  EAST AND AFRICA
AND LATIN AMERICA
IMPORTS  DECLINE
Latin America’s dairy
import volumes¹ declined
5% in August compared to
the same month last year.
This decline was largely due
to WMP imports, which
were down 43% this month,
offset by small increases
in fluid and fresh dairy and
whey powder.
For the 12 months to August,
imports were up 7%, or
124,000 MT, compared
to the same period the
previous year.
Growth in imports was
primarily driven by cheese,
SMP and MPC/MPI which
for the 12 months to date,
were up a combined 13%, or
104,000  MT.
Asia (excluding China)
dairy import volumes¹
increased 5% in August
compared to the same
month the previous year.
This growth continues to be
driven by imports of SMP,
largely from the Philippines.
For the 12 months to August,
imports were up 7%, or
309,000 MT, compared to
the same period last year.
Increases continue to be
seen across all key import
categories, in particular
SMP, cheese and fluid and
fresh dairy, which were
up a combined 9%, or
193,000  MT.
Middle East and Africa
dairy imports¹ in August
decreased 9%, or 30,000  MT,
compared to the same
month the previous year.
Butter, WMP and fluid and
fresh dairy led the decline,
down a combined 28,000  MT.
Imports for the 12 months
to August were down
3%, or 114,000 MT. Large
declines were seen in WMP,
butter, infant formula and
cheese, down a combined
167,000 MT. These declines
were partially offset by
increases in fluid and fresh
dairy and SMP, the region’s
largest import categories,
up 68,000 MT and
22,000 MT respectively.
China dairy imports
increased 28%, or 43,000  MT,
in October compared to the
same month last year.
Imports across all major
categories showed growth
in October, in particular fluid
and fresh dairy which grew
16,000 MT, or 31%.
Imports for the 12 months
to October were up
287,000 MT compared to
the same period last year.
Strong import demand out
of China continues with
all key categories up for
the period. WMP, infant
formula and SMP imports
all grew significantly, up
80,000 MT, 69,000 MT and
52,000 MT respectively.
LATIN AMERICAASIAMIDDLE EAST & AFRICACHINA
Import change for the 12
months to October 2017
Import change for the 12
months to August 2017
Import change for the 12
months to August 2017
Import change for the 12
months to August 2017
713
3
7
1 Estimates are included for those countries that have not reported import data.

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changes in exports –
3
OUR MARKETS
GLOBAL EXPORTS
DAIRY EXPORTS FROM
NEW  ZEALAND AND US
CONTINUE TO DECLINE.
EXPORT GROWTH FROM THE
EU INCREASING
Total New Zealand
dairy exports in October
decreased 7%, or 23,000  MT,
compared to the same
month last year. The decline
was driven by AMF, butter
and WMP, down a combined
27,000  MT.
Exports for the 12 months
to October were down
4%, or 120,000 MT, on the
previous comparable period.
Exports declined across
most categories except
fluid and fresh dairy and
infant formula, which were
up a combined 76,000  MT.
The three largest export
categories, WMP, SMP and
cheese, declined a combined
4%, or 80,000  MT.
EU dairy exports in August
were up 6%, or 27,000  MT,
relative to the same month
the previous year.
Exports of SMP were up
again this month, an increase
of 79%, or 30,000  MT,
compared to the same
month last year. Europe’s
largest export category, fluid
and fresh dairy, showed a
decline of 2% for the month.
Exports for the 12 months
to August were up 4%, or
204,000 MT, on the previous
comparable period. SMP,
infant formula, cheese and
lactose exports increased
a combined 297,000  MT,
in part offset by declines in
fluid and fresh dairy, butter
and AMF.
US dairy exports decreased
10% in October, or
22,000 MT, compared to the
same month the previous
year. The decline in October
is due to a reduction in SMP
exports, down 25,000  MT,
or 33%.
Exports for the 12 months
to October were up 7%, or
152,000 MT, on the previous
comparable period. The
increase in exports continues
to be driven by cheese and
whey powder, up a combined
113,000  MT.
Australian dairy exports
increased 12%, in October
compared to the same
month last year. Key drivers
were fluid and fresh dairy,
cheese and infant formula
which were up a combined
28%, or 10,000  MT.
Exports for the 12 months
to October were down
1% on the previous
comparable period.
Fluid and fresh dairy
and infant formula
exports remain strong,
up 24,000 MT, however
declines in most other export
categories led to an overall
decline of 1%, or 10,000  MT.
NEW ZEALANDAUSTRALIAEUROPEAN UNIONUSA
71
4
4
Export change for the 12
months to October 2017
Export change for the 12
months to October 2017
Export change for the 12
months to October 2017
Export change for the
12 months to August 2017

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illustrates year‑on‑year
changes in production –
4
OUR MARKETS
GLOBAL PRODUCTION
FURTHER INCREASE IN
MONTHLY EUROPEAN
MILK PRODUCTION.
NEW  ZEALAND PRODUCTION
IMPROVED IN NOVEMBER,
HOWEVER CONTINUES TO BE
IMPACTED BY WEATHER
Total New Zealand milk
production in November was
up 4% compared to the same
month last year. This is largely
due to improved weather
conditions towards the end
of spring and through early
November. Dry weather across
the country, has caused soil
moisture and pasture quality to
decrease, impacting collections
in late November.
Dry conditions are expected to
continue and intensify, which
would significantly impact
New Zealand production.
For the 12 months to November
milk production was up 1%
compared to the same period
the previous year.
Fonterra collections have been
reported for November, see
page 5 for details.
Australia production
in October increased 7%
compared to the same month
last year due to favourable
spring conditions across all
major collection regions
compared to wet September/
October conditions last year.
Production for the 12 months
to October was down 2%
compared to the same
period the previous year due
to particularly poor spring
conditions in 2016.
Fonterra collections in
Australia have been reported
for November, see page 5
for details.
EU production increased 7%
in October compared to the
same month last year, driven by
strong global dairy prices.
France, Germany and the
United Kingdom had the
largest increases in production,
up 7%, 9% and 5% respectively,
in October.
Production for the 12 months
to October was flat. While
Ireland, Poland and Italy were
up a combined 5%, however
Germany and France, Europe’s
largest producers, were down a
combined 2%.
US production in October
increased 1% compared to the
same month last year largely
due to increased productivity,
as milk production per cow
across all 23 major states
continued to improve.
Milk production for the
12 months to September
increased 2% compared to the
same period the previous year.
NEW ZEALANDAUSTRALIAEUROPEAN UNIONUSA
Production change
for the 12 months to
October 2017
Production change
for the 12 months to
November 2017
Production change
for the 12 months to
October 2017
Production change

for the 12 months to
October 2017
1220

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To view a table that shows our
detailed milk collection in New
Zealand and Australia compared
to the previous season –
VOLUME M LITRESDAY
JUNJULAUGSEPOCTNOVDECJANFEBMARAPRMAY









5
OUR MARKETS
FONTERRA MILK COLLECTION 2017/18 SEASON
NEW ZEALANDNORTH ISLANDSOUTH ISLANDAUSTRALIA
Increase for the season from
1 June to 30 November
Increase for the season from
1 June to 30 November
Increase for the season from
1 June to 30 November
Increase for the season from
1 July to 30 November
1112
26
NEW ZEALAND MILK COLLECTION
Fonterra’s milk
collection across
Australia for the five
months to 30 November
reached 70 million
kgMS, 15 million kgMS
or 26% higher than
last season.
Collections in November were
up 28% on the same month
last year. Growth has been
driven by new suppliers who
have moved to Fonterra in the
past year and strong seasonal
conditions across all regions.
North Island milk collection
in November reached 118
million kgMS, 1% up on
November last season.
South Island milk collection
in November reached 81 million
kgMS, 5% up on November last
season.
Fonterra’s milk
collection across
New Zealand for
the six months to
30 November reached
702 million kgMS, 1%
above the same period
last season.
November collections reached
199 million kgMS. This is 3%
ahead of last year, although
collections in November
last year were well down on
more usual levels. Recent dry
weather across the country,
particularly in the lower
North Island has caused soil
moisture and pasture quality to
decrease, impacting collections
in late November and early
December. This has supported
our decision to bring the
forecast milk collection for
the 2017/18 season down to
1,525 million kgMS.

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including a snapshot of the
rolling year‑to‑date results –
%
GDT PRICE INDEXNZDUSD SPOT RATE
DEC  OCT FEB  MAY  JUL  OCT  DEC  FEB MAY JUL DEC 



,
,
.
.
. 
. 
. 
PRICE INDEX
NZD  USD
6
OUR MARKETS
FONTERRA GLOBALDAIRYTRADE RESULTS
Fonterra GDT sales
by destination:
Dairy commodity prices
and New Zealand
dollar trend
The New Zealand dollar
remained volatile in
November but ultimately
finished the month close
to unchanged.
Fonterra GDT results at
last trading event
19 December 2017:
The next trading event will be held on 2 January 2018. Visit www.globaldairytrade.info for more information.
Change in Fonterra’s
weighted average product
price from previous event
3.3
Fonterra’s weighted
average product price

(USD/MT)
3,008
USD
Fonterra product quantity
sold on GDT
000’ MT
28.6
NORTH ASIA (INCLUDING CHINA)
SOUTH EAST ASIA
MIDDLE EAST AND AFRICA
LATIN AMERICA
OTHER
USD 3,389/MT
8.3
CHEDDAR
USD 4,506/MT
7.6
RENNET CASEIN
USD 6,392/MT
6.5
AMF
USD 1,689/MT
5.1
SMP
USD 2,755/MT
2.7
WMP
USD 4,474/MT
2.2
BUTTER
28,594
MT
LATEST AUCTION
326,169
MT
FINANCIAL
YEAR‑TO‑DATE

77
OUR PERFORMANCE
2018 THREE-MONTH
BUSINESS  UPDATE
REVENUE
VOLUME
GROSS MARGIN
16.7
%
3.9
B LME
4.0
B$
DOWN 20%
UP 2%
UP 22%
UP 4%
DOWN FROM 21.9%
OPEX
$
636
M
Fonterra’s performance
for the three months to
31 October was broadly
in line with expectations.
Overall volume was down
20% to 3.9 billion LME,
reflecting low opening
inventories and milk
collection phased towards
the end of the quarter.
Despite these lower volumes,
revenue increased 4% to
$4.0 billion due to strong
global pricing and demand,
and the business’ continued
efforts to drive more volume
into higher‑value products.
New Zealand Ingredients
experienced a challenging
first quarter. The historically
low opening inventory
levels and phasing of
milk collections outlined
above, limited our ability
to achieve additional
sales volumes. Total gross
margin percentage in the
Ingredients business was
lower than the first quarter
of FY17 but in line with the
second half of  FY17.
The Consumer and
Foodservice business
delivered a solid first quarter.
Our businesses in Greater
China and Asia delivered
increased sales despite
significantly higher input
costs however volumes are
slightly down overall on last
year. We continue to target
400 million incremental
LMEs into Consumer and
Foodservice for the full
year. Overall gross margin
percentage was 24% for the
three months to October.
While this is down on the
first quarter last year which
benefited from lower input
costs, it is ahead of the final
quarter of FY17.
Our China Farms operations
achieved volume growth of
6% for the year‑to‑date, as
both hubs operate to near
full capacity. Performance
improved due to efforts to
reduce operating costs and
the change in strategic focus
implemented last year.
Capital expenditure of
$142 million is in line
with our expectations for
this stage in the financial
year, with an expected
full year spend of around
$800 million.
THE OUTLOOK
In early December 2017,
Fonterra reduced the
forecast Farmgate Milk Price
for the 2017/18 season by
35 cents to $6.40 per kgMS.
This decision reflects a
prudent approach to ongoing
volatility in the global
dairy market.
The forecast milk
collection for the season
has also been reduced
to 1,525 million kgMS in
line with the previous
season, as a result of the
continued challenging
weather conditions across
the country.
In response to the outcome
of the Danone arbitration
proceedings, our forecast
earnings per share range
has been revised to 35 to 45
cents. This means that the
total available for payout to
farmers in the 2017/18 season
is forecast to be $6.75‑$6.85
before retentions.
$
M
142
CAPEX

8
OUR PERFORMANCE
INGREDIENTS
Fonterra manufactures
five commodity
products that inform the
Farmgate Milk Price.
These are referred to as
reference products. All other
products are referred to as
non‑reference products. The
pricing relativities between
reference product prices and
non‑reference product prices
are known as stream returns
and can impact Fonterra’s
gross margins.
Reference products are
whole milk powder (WMP),
skim milk powder (SMP),
butter, anhydrous milk fat
(AMF), and butter milk
powder (BMP).
New Zealand milk collections
for the season to October
were flat compared to the
same period last year. While
there was some recovery
in collections towards the
back half of October, heavy
rainfall throughout spring
put significant pressure on
production over the peak.
Dry weather across the
country in November and
early December particularly
in the lower North Island
has caused soil moisture and
pasture quality to decrease,
impacting recent collections.
This has contributed to
our decision to bring the
forecast collection for the
2017/18 season down to
1,525 million kgMS, broadly
in line with last year.
Sales for the first quarter
were over 20% lower
than the same period last
year due to both lower
opening inventory and
milk collections being
weighted towards the end of
the quarter.
If dry conditions continue
through the summer
collections are likely to
be impacted, further
affecting sales in our
ingredients business.
Revenue was up significantly
on the back of higher prices
for both reference and
non‑reference products.
These higher prices account
for some of the decline in
gross margin percentage.
The remainder of the
impact was due to a lower
regulated return, lower price
achievement per metric
tonne, and higher fixed costs
given the lower volumes.
As sales increase over the
remainder of the year, we
expect total gross margins
to improve, however this is
likely to be weighted towards
the second half of the year.
Despite reference prices
increasing versus last quarter
and non‑reference prices
declining, overall stream
returns are balanced for the
period. This reflects strong
demand for our protein
and cheese products, both
from external customers
and in our foodservice
business, and supports a
production mix shift towards
non‑reference products, up
9% versus a 1% decrease in
reference products.
NEW ZEALAND INGREDIENTS
Q1 FY17Q2 FY17Q3 FY17Q4 FY17Q1 FY18
CHANGE

Q1 FY17
TO Q1 FY18
PRODUCTION VOLUME¹ (000 MT)
Reference products58870446184583(1%)
Non‑reference products 218239221712379%
SALES VOLUME¹
,
² (000 MT)
Reference products369604386481287(22%)
Non‑reference products 164211185212130(21%)
REVENUE¹
,
² ($ PER MT)
Reference products3,4524,1304,7984,6184,92843%
Non‑reference products 4,9555,3705,7816,0945,77717%
1 Excludes bulk liquid milk.
2 Excludes China and Latin America foodservice sales and revenue which is included in the production volume..

9
OUR PERFORMANCE
CONSUMER AND FOODSERVICE
Our strategy is to
convert as much
milk as possible into
higher‑value products.
Consumer and Foodservice
delivered a solid
performance for the three
months to 31 October 2017
on the back of a very strong
first quarter last year.
Our key regions of Greater
China and Asia grew as
demand in the foodservice
channel continues to grow,
however overall volumes
decreased by 3% to
1.3 billion LME.
Gross margin of 24% is
behind the same period last
year, reflecting significantly
higher input costs compared
to the first quarter of FY17.
Product mix has also
changed this quarter as
customers respond to rising
prices. The business has
maintained a strong focus
this quarter on moving
sales into higher‑returning
products rather than growing
absolute sales volume.
ASIA
GREATER
CHINA
LATIN
AMERICAOCEANIATOTAL
VOLUME (M LME)
First quarter FY184272731814121,293
First quarter FY174142711844691,338
% Change3%1%(1%)(12%)(3%)
GROSS MARGIN (%)
First quarter FY1823%29%29%18%24%
First quarter FY1733%39%33%24%31%
CONSUMER AND FOODSERVICE THREE-MONTH PERFORMANCE
GREATER CHINA
Greater China delivered
volumes of 273 million LME
for the three months to
31 October, an increase of
1%, on the back of a very
strong first quarter last year.
The decline in gross margin
percentage was largely due
to the significant increase
in input costs and the
resulting shift in product
mix, as demand moved in
response to price changes.
The business has remained
focused on converting as
much volume as possible
into higher‑value products.
OCEANIA
In the previous comparable
period volumes included
sales from divested
businesses in Australia.
Adjusting for this, Oceania
volumes declined 8%.This
overall decline was in part
due to heavy competition
in the New Zealand market.
Gross margins in Oceania
also declined on the back
of higher input costs and
a changing product mix in
response to higher prices
this year.
ASIA
The Asia region delivered
volume growth of 3%
compared to the first
quarter last year, with a total
of 427 million LME sold.
Our foodservice business
continues to perform well,
delivering further volume
growth on a very strong
quarter one last year. Gross
margin percentage was
behind last year, due to
higher input costs and a
change in mix.
LATIN AMERICA
Our Soprole business
continues to perform
well in Chile, with volume
growth and strong market
positioning. The overall Latin
America result continues to
be impacted by challenging
conditions in Venezuela
and Brazil.
While the economy in
Brazil is showing some early
signs of improvement, the
dairy market continues to
retract albeit at a slower
rate. Our operations are
focused on cost leadership
and continuing to gain
market share.

Read the full 2018
Sustainability Report –
10
OUR CO-OP
Planting the Ashburton
Hakatere River Trail
Over 100 volunteers from
Environment Canterbury,
Ashburton District Council,
Fonterra and others
descended on the Ashburton
Hakatere River Trail to help
plant around 500 trees along
the riverbank.
The 19‑kilometre trail
winds from the Ashburton
Township to the river
mouth at Hakatere, passing
riverside willows and
farmland on the way, and
is a well‑used walking and
cycling track. The river itself
is an important wildlife
habitat for both birds and
fish, and supports breeding
colonies of the endangered
black‑billed gull.
The Ashburton Water Zone
Committee organised
the event and member,
Angela Cushnie, says it is
part of an ongoing project
to make the district a more
beautiful place for everyone
to enjoy.
“We’re a small community
and it’s great to see so many
people out there working
together to make a positive
difference and to show
our children we all have a
role to play in keeping our
district beautiful.
“The planting was very
successful and everyone had
a blast, but it was also a great
opportunity to talk to people
and get their ideas about
what other things we can
do to improve the area and
others across the district,”
says Angela.
Fonterra Area Manager
for Mid‑Canterbury South,
Antoinette Archer, says
everyone had fun and it was
a wonderful opportunity to
help a great cause.
“As well as helping out with
the planting, we ran the BBQ
for the post‑match event,
and we also brought along
some Calci‑Yum to make
sure the volunteers were
well‑fed. It was great seeing
so many different people
from different organisations
spend a bit of their time
to improve the river for
everyone.”
The volunteers spent two
hours planting along the
trail, followed by the BBQ.
Riparian planting helps
improve water quality as
the plants act like filters,
helping to slow down any
surface water running off
the land into the river. They
also filter out nutrients and
sediment, removing at least
60% of nitrogen and 65% of
phosphorous. The plants also
create shade which reduces
weed growth and helps
bring the water temperature
down providing a healthier
environment for water life.
Fonterra’s first
Sustainability Report
released
Earlier this month, the Co‑op
released its first standalone
Sustainability Report.
It has been produced
to international
reporting standards to
ensure its integrity and
provides an objective
view of our social and
environmental performance.
The report shows the
Co‑op has made significant
progress in some areas, and
has plans in place where
there is more work to
be done.
We are proud of the progress
the Co‑operative has made
in most areas thanks to the
commitment and hard work
of our farmers, people, and
partners that work alongside
our Co‑operative.

PRODUCTION
AUSTRALIAAVERAGE
UNITED STATES
NEW ZEALANDEU
NOV JUN MAY APR FEB JAN DEC  AUG OCT SEP JUL MAR 
LIQUID MILK M LITRES











,





EXPORTS
AUSTRALIA
UNITED STATES
NEW ZEALANDEU
JUL JUN MAY MAR FEB JAN DEC NOV OCT SEP AUG APR 
MT s







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








AVERAGE
11

SUPPLEMENTARY INFORMATION
Global Dairy Market
The charts on the right
illustrate the year‑on‑year
changes in imports, exports
and production for a range of
countries that are important
players in global dairy trade.
The absolute size of
the bars represents the
change in imports, exports
or production, relative
to the same period the
previous year.
Averages are shown where
data is complete for the
regions presented.
NOTE: Data for Asia, Middle East and Africa and Latin America to August, China to October.
NOTE: Data for EU to August; New Zealand, US and Australia to October.
NOTE: Data for EU, Australia, and US to October, New Zealand to November.
SOURCE: Government milk production statistics/GTIS trade data/Fonterra analysis.

WEIGHTED AVERAGE PRICEQUANTITY SOLD
JAN
DEC
SEP
AUG
OCT
APR
MAY
FEB
JUN
NOV
JUL
MAR

,
,

,
,
,
,
,

,
,
,
WEIGHTED AVERAGE PRICE USDMT
QUANTITY SOLD  MT
12

SUPPLEMENTARY INFORMATION
Fonterra milk
production
The table on the right
shows Fonterra milk solids
collected in New Zealand
and Australia compared
to the previous season.
MILK COLLECTION
(MILLION KGMS)
NOVEMBER
2017
NOVEMBER

2016
MONTHLY
CHANGE
SEASON-
TO-DATE
2017/18
SEASON-
TO-DATE
2016/17
SEASON-
TO-DATE
CHANGE
Total Fonterra
New Zealand
199.1193.72.7%70.1.5694.81.0%
North Island117.8116.31.3%444.7442.10.6%
South Island81.377.54.8%256.8252.71.6%
Fonterra Australia17.413.627.8%70.055.426.3%
Fonterra GDT results
This table provides more
information on the latest
results, including a snapshot
of the year‑to‑date results.
LAST TRADING EVENT
(19 DECEMBER 2017)
YEAR-TO-DATE

(FROM 1 AUGUST 2017)
Quantity Sold on GDT
(Winning MT)
28,594326,169
Change in Quantity Sold on GDT
over same period last year
33.9%10.6%
Weighted Average Product Price
(USD/MT)
3,0083,223
Change in Weighted Average
Product Price over same period
last year
(19.8%)4.2%
Change in Weighted Average
Product Price from previous event
(3.3%)–
Fonterra GDT Results
This chart shows Fonterra
GDT prices and volumes over
the past 12 months.

13
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.
GDT
GlobalDairyTrade, the
online provider of the twice
monthly global auctions of
dairy ingredients.
kgMS
Kilogram of milk solids, the
measure of the amount of
fat and protein in the milk
supplied to Fonterra.
LME (Liquid Milk
Equivalent)
A standard measure of the
amount of milk (in litres)
allocated to each product
based on the amount of fat
and protein (“milk solids”) in
the product relative to the
amount of fat and protein in
a standardised raw milk.
Non‑Reference Products
All dairy products, except
for Reference Products,
produced by the NZ
Ingredients business.
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
Fonterra Strategic Platforms
Ingredients
The Ingredients platform
comprises bulk and specialty
dairy products such as milk
powders, dairy fats, cheese
and proteins manufactured
in New Zealand, Australia,
Europe and Latin America, or
sourced through our global
network, and sold to food
producers and distributors in
over 140 countries.
It also includes Fonterra
Farm Source™ retail stores.
Consumer
The Consumer platform
comprises branded
consumer products, such
as powders, yoghurt, milk,
butter, and cheese. Base
products are sourced from
the ingredients business
and manufactured into
higher‑value consumer
dairy products.
Foodservice
The Foodservice platform
comprises a range of
branded products and
solutions for commercial
kitchens, including bakery
butter, culinary creams,
and cheeses.
China Farms
The China Farms platform
comprises the farming
operations in China, which
produce high quality fresh
milk for the Chinese market.