Global Dairy Update May 2018

1
GLOBAL DAIRY
UPDATE
MAY 2018
KEY DATES
1 June 2018
Measurement Date for Share
Standard 2018/19 Season
Late September 2018
FY18 Annual Results
Announcement
12 November 2018
Fonterra Shareholders' Fund
Annual Meeting
December 2018
FY19 Q1 Business Update
• China imports back to growth for the month.
Imports down in Latin America and Middle
East and Africa.
• Dairy exports for all regions grew strongly.
The US has highest monthly exports in four
years.
• Increases in production across all regions for
the month. Australian production up for the
sixth consecutive month.
• In April, Fonterra's New Zealand collections
were down 2% and Fonterra's Australian
collections were up 25% compared to April
last year.
• Fonterra's forecast milk collection for the
2018/19 season is 1,525 million kgMS.
• 2018 nine-month business update.
• Increased forecast farmgate milk price for the 2017/2018
season of $ 6.75 per kgMS.
• New season forecast farmgate milk price for the 2018/2019
season announced at $ 7.00 per kgMS.
• Forecast earnings per share revised to 25-30 cents due to the
rapid and late increase in our input costs.
• Full year target dividend range lowered to 15-20 cents per
share.
• Fonterra-EECA partnership drives 25% reduction in emissions
at Brightwater site.
• Te Rapa celebrates 50 years – a place of work, a producer of
world class dairy, a supportive community and, for some, it
has even been home.
OUR PERFORMANCEOUR MARKETS
OUR CO-OP

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illustrates year-on-year
changes in imports –
CLICK HERE
2
OUR MARKETS
GLOBAL IMPORTS
CHINA IMPORTS BACK
TO  GROWTH FOR
THE  MONTH. IMPORTS
DOWN IN LATIN  AMERICA
AND MIDDLE  EAST AND
AFRICA
Latin America’s dairy
import volumes¹ declined
2%, or 3,000 MT, in January
compared to the same
month last year. The decline
was driven by 13,000 MT in
WMP which was partially
off set by cheese and lactose,
up a combined 8,000 MT.
For the 12 months to January,
imports were down 1%,
or 20,000 MT, compared
to the same period the
previous year. This was
primarily driven by WMP
and AMF down 91,000 MT
and 18,000 MT respectively.
These were partially off set
by SMP and whey powder,
up a combined 16%, or
77,000 MT.
Asia (excluding China)
dairy import volumes¹
were up 9%, or 33,000 MT,
in January. This was primarily
due to a combined growth
of 18%, or 42,000 MT, in
most of the largest export
categories, in particular fl uid
fresh dairy and WMP, which
were up 9,000 MT and
7,000 MT respectively. These
gains were dampened by a
decline in SMP of 10,000 MT.
For the 12 months to January,
imports were fl at. Driven by
a 66,000 MT decline in SMP,
the largest import category,
largely off set by gains in
cheese of 56,000 MT.
Middle East and Africa
dairy imports¹ in January
decreased 1%, or 3,000 MT,
compared to the same
month the previous year.
This was due to growth in
SMP and butter categories
of a combined 13,000 MT,
being more than off set by
combined declines in fl uid
and fresh dairy and WMP of
16,000 MT.
Imports for the 12 months
to January were down 2%,
or 86,000 MT. Declines
continue to be seen across
most of the key import
categories apart from fl uid
and fresh dairy and SMP,
which were up a combined
3%, or 54,000 MT, for
the period.
China dairy imports
increased 3%, or 7,000 MT,
in March compared to the
same month last year. This
was driven by a combined
14,000 MT, or 22%, growth
in fl uid and fresh dairy, butter
and lactose categories.
Declines in WMP of
6,000 MT partially off set the
gains made.
Imports for the 12 months to
March were up 394,000 MT
compared to the same period
last year. Strong demand
out of China continues
with imports across all
key categories up for the
period. Infant formula, WMP
and SMP imports added a
combined 220,000 MT of
additional volumes.
LATIN AMERICAASIAMIDDLE EAST & AFRICACHINA
Import change for the 12
months to March 2018
Import change for the 12
months to January 2018
Import change for the 12
months to January 2018
Import change for the 12
months to January 2018
017
2
1
1 Estimates are included for those countries that have not reported data.

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changes in exports –
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3
OUR MARKETS
GLOBAL EXPORTS
DAIRY EXPORTS FOR ALL
REGIONS GREW STRONGLY.
THE US HAS HIGHEST
MONTHLY EXPORTS IN FOUR
YEARS
Total New Zealand dairy
exports in March were
up 12%, or 32,000 MT,
compared to the same
month last year. The increase
was driven by SMP, WMP
and butter, up a combined
30,000 MT, or 20%.
Exports for the 12 months
to March were up 1%, or
17,000 MT, on the previous
comparable period.
This was driven by an
additional 107,000 MT in
WMP and fl uid and fresh
dairy. These increases for
the 12 months to March
were partially off set by AMF,
SMP and cheese, down a
combined 81,000 MT, or 8%.
EU dairy exports in
January increased by 10%, or
39,000 MT, compared to the
same month last year.
Exports grew for all
categories except WMP
and caseinate, which were
down a combined 9,000 MT.
Growth was primarily driven
by fl uid and fresh dairy,
infant formula and whey
powder, up a combined
33,000 MT, or 19%.
Exports for the 12 months
to January were up 6%, or
323,000 MT, on the previous
comparable period.
US dairy exports increased
23%, or 42,000 MT, in
March, compared to the
same month the previous
year. This marks the highest
exported volumes since
March 2014¹. SMP, lactose
and WPC and WPI were the
primary growth categories,
adding a combined
30,000 MT.
Exports for the 12 months
to March were up 7%, or
141,000 MT, on the previous
comparable period. The
increase was driven by
cheese, whey powder
and SMP up a combined
118,000 MT.
Australia dairy exports
increased 26%, or 14,000 MT,
in March compared to the
same month last year. Key
drivers were SMP, fl uid and
fresh dairy and WMP, up a
combined 43%, or 14,000 MT.
Exports for the 12 months to
March were up 3% on the
previous comparable period.
Fluid and fresh dairy and
infant formula exports
continue to show strong
growth, up 20%, or
49,000 MT, for the 12 month
period to March. However
most other export categories
remain down, in particular,
WMP, whey powder and
butter which declined 24%,
or 31,000 MT, combined.
NEW ZEALANDAUSTRALIAEUROPEAN UNIONUSA
73
1
6
Export change for the 12
months to March 2018
Export change for the 12
months to March 2018
Export change for the 12
months to March 2018
Export change for the 12
months to January 2018
1 http://blog.usdec.org/usdairyexporter/
us-dairy-exports-set-a-new-record-in-
march-0.

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changes in production –
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4
OUR MARKETS
GLOBAL PRODUCTION
INCREASES IN
PRODUCTION ACROSS
ALL REGIONS FOR THE
MONTH. AUSTRALIAN
PRODUCTION UP FOR THE
SIXTH CONSECUTIVE  MONTH
Total New Zealand milk
production in April was up 3%
compared to the same month
last year. This is largely due to
favourable weather conditions
resulting in good late season
grass growth throughout most
of the country. The South Island
in particular, continues to have
a strong autumn compared to
the same month last year.
For the 12 months to April milk
production was fl at compared
to the same period the
previous year.
Fonterra collections have been
reported for April, see page 5
for details.
Australia milk production in
March increased 3% compared
to the same month last year,
largely driven by Victoria and
Tasmania benefi ting from
favourable seasonal and
production conditions.
Production for the 12 months to
March was up 2% compared to
the same period the previous
year due to improved seasonal
conditions and cost effi ciencies.
Fonterra collections in Australia
have been reported for April,
see page 5 for details.
EU milk production increased
1% in March compared to the
same month last year, driven
by favourable conditions and
strong prices.
Germany, France and Italy
had the largest increases in
production, up 2%, 2% and 3%
respectively, in March.
Production for the 12 months to
March was up 3% compared to
the same period the previous
year. This is driven primarily by
lower feed costs, higher raw
milk prices and good pasture
conditions. Ireland, Germany
and the United Kingdom
showed the most growth, up a
combined 4%.
US milk production in
February increased 2%
compared to the same month
last year.
The increase in production
continues to be driven by larger
herd numbers and improved
production per cow.
Milk production for the
12 months to February
increased by 2% compared
to the same period the
previous year.
NEW ZEALANDAUSTRALIAEUROPEAN UNIONUSA
Production change
for the 12 months to
March 2018
Production change
for the 12 months to
April 2018
Production change
for the 12 months to
March 2018
Production change
for the 12 months to
February 2018
0223
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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 LITRES/DAY)
JUNJULAUGSEPOCTNOVDECJANFEBMARAPRMAY
2017
/18
2016/172015/16
0
20
40
60
80
100
5
OUR MARKETS
FONTERRA MILK COLLECTION 2017/18 SEASON
NEW ZEALANDNORTH ISLANDSOUTH ISLANDAUSTRALIA
Decrease for the season
from 1 June to 30 April
Decrease for the season
from 1 June to 30 April
Decrease for the season
from 1 June to 30 April
Increase for the season from
1 July to 30 April
320
26
NEW ZEALAND MILK COLLECTION
Fonterra’s milk collection
across Australia in April
reached 11 million kgMS,
2 million kgMS higher than
April last season
This growth in April is
due to a combination
of favourable seasonal
conditions supporting strong
production growth and the
increase of milk collections
from new suppliers.
North Island milk
collection in April reached
65 million kgMS, 2% down
on April last season.
South Island milk
collection in April reached
55 million kgMS, 8% up on
April last season.
Fonterra’s milk collection
across New Zealand for
the 11 months to 30 April
reached 1,434 million kgMS,
2% below the same period
last season.
April collections reached
120 million kgMS, up 2%
compared to the same
period last year. This was
largely due to favourable
weather conditions and
improved pasture quality in
the South Island.
Forecast Farmgate Milk
Price for the 2018/19
season
Forecast milk collection
for the 2018/19 season
per KGMS
7. 0 01, 5 2 5M
KGMS
We are required to provide a new
season forecast for the Farmgate
Milk Price of total New Zealand
milk collections under DIRA. The
Farmgate Milk Price is forecast at
$7.00, and collections estimated
to increase by 2% in the 2018/19
season assuming a return to
more usual climatic conditions.
Forecast Farmgate
Milk Price and Fonterra
Milk Collection Across
New Zealand
NZD

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including a snapshot of the
rolling year-to-date results –
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%
6
%
GDT PRICE INDEXNZD/USD SPOT RATE
MAY 16MAR 17JUL 17OCT 17DEC 17MAR 18MAY 18JUL 16OCT 16DEC 16MAY 17
600
750
900
1,050
1,200
0.66
0.70
0.72
0.74
0.76
PRICE INDEX
NZD / USD
OUR MARKETS
FONTERRA GLOBAL DAIRY TRADE RESULTS
Fonterra GDT sales
by destination:
Dairy commodity prices
and New Zealand
dollar trend
The NZ dollar depreciated
sharply in April, driven by a
broad strengthening in the
US dollar as interest rates in
the US lifted.
Fonterra GDT results at
last trading event
15 May 2018:
The next trading event will be held on 5 June 2018. Visit www.globaldairytrade.info for more information.
Change in Fonterra’s
weighted average product
price from previous event
4.2
Fonterra’s weighted
average product price
(USD/MT)
3,710
USD
Fonterra product quantity
sold on GDT
000’ MT
17.5
NORTH ASIA (INCLUDING CHINA)
SOUTH EAST ASIA
MIDDLE EAST AND AFRICA
LATIN AMERICA
OTHER
USD 6,354/MT
5.3
AMF
USD 4,205/MT
4.5
CHEDDAR
USD 2,074/MT
3.0
SMP
USD 5,787/MT
2.5
BUTTER
USD3,226/MT
0.2
WMP
USD 4,876/MT
5.8
RENNET CASEIN
17,504
MT
LATEST AUCTION
518,809
MT
FINANCIAL
YEAR-TO-DATE

7
OUR PERFORMANCE
2018 NINE-MONTH
BUSINESS  UPDATE
REVENUE
VOLUME
GROSS MARGIN
16.0
%
16.0
14.8
B
B LME
$
$
$
DOWN 5%
UP 2%
UP 35%
UP 7%
DOWN FROM 18.0%
OPEX
1.9
B
M
The forecast Farmgate Milk
Price of $6.75 per kgMS has
increased 20 cents for this
season to refl ect a global
supply and demand picture
that continues to be positive
for farmers. This is expected to
continue for next season and
we are forecasting a Farmgate
Milk Price of $7.00 per kgMS for
the 2018/2019 season. We will
announce our forecast earnings
per share for the 2019 fi nancial
year in July as normal.
This increase in the forecast
Farmgate Milk Price puts
pressure on our business,
particularly this late in the
season. As a result, we
have revised our forecasted
normalised earnings per share
guidance range down to 25–30
cents per share and the dividend
range to 15-20 cents per share.
For the fi rst nine months to 30
April, sales volumes were down
5% refl ecting lower opening
inventory and low spring
milk collections. Revenues
grew 7% as a result of higher
prices, but this was insuffi cient
to off set higher input costs
leading to margin compression.
Gross margin declined from
18% to 16% on the previous
comparable period. This was
primarily due to lower margin
percentages in Consumer and
Foodservice.
Ingredients had lower sales
volumes (down 5%) but higher
revenues (up 9%) due to higher
commodity prices. Gross
margins were at 10% and in-line
with the comparable period. In
the third quarter strengthening
commodity prices tightened
margins. This is partly because in
a rising milk price environment
there is a natural pricing lag
inherent in our sales contracts.
In addition, we also had lower
price achievement due to
increased competition from
US and Europe in cheese and
proteins
The Consumer and Foodservice
business achieved growth in
three regions but was down
in Oceania. For the fi rst nine
months overall sales volumes
were fl at and revenues grew
6% on last year. Gross margins
reduced from 28% to 24%
on the previous comparable
period due to higher input
costs, especially for fat products.
In the third quarter there was
increased competition in the
Greater China’s foodservice
market and further constraints
in some Asian markets limiting
our ability to pass through costs.
Our current forecast for the
full year is to sell an additional
130 million LMEs in Consumer
and Foodservice than the same
period last year, down from the
previous target of 400 million.
Our China Farms business
grew production by 4% for the
fi rst nine months of the year.
The business continues to be
well positioned for increasing
demand for fresh milk in China.
We expect our full year capital
expenditure to be within the
range of $800-850 million,
which at the top end is in line
with last year.
At 30 April 2018 our working
capital days were 9 days
higher than last year due to
higher commodity prices,
refl ected in higher inventory
and receivables. Our year-end
gearing is likely to be above
40-45% target range due to
the abnormal items announced
at the interim result and lower
earnings. Our expectation is for
gearing to be back within the
target range next year.
584
CAPEX
Changes are expressed relative
to fi rst nine - months of FY17

OUR PERFORMANCE
INGREDIENTS
8
Fonterra manufactures
fi ve 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 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).
Milk collection for the season
to date was 2% lower than the
same time last year resulting in
lower production volumes. This
is largely a result of the diffi cult
weather conditions impacting
pasture growth. For the
2018/2019 we are forecasting
collections to rise by 1.5% on the
current season, to 1,525 million
kgMS.
Revenues were $11.8 billion for
the fi rst nine months of the year
(up 9% on last year). Volumes
were down 5% compared to
last year due to lower opening
inventory and lower spring milk
collections in New Zealand. In
the third quarter, revenues were
up 7% on last year and volumes
were up 9% on last year.
For the fi rst nine months our
margins were in-line with the
comparable period, at 10%. We
were expecting our earnings
to be weighted in the second
half of the year and this has
not occurred due to the rapid
rise in our input costs. Gross
margins tightened in the third
quarter from 11% recorded in
the fi rst half. In a rising milk price
environment, there is a natural
pricing lag inherent in our sales
contracts. We also had lower
price achievement because of
increased competition in the US
and Europe in our cheese and
protein portfolios.
Revenue ($ per metric tonne)
for reference products fell 2%
on the last quarter while non-
reference products declined by
7%. The reduction in revenue
per metric tonne for reference
products is due to product mix,
as we sold less of the higher
priced fat products than in the
same period last year.
Closing inventory for the nine-
months to 30 April 2018 was
2% higher than the same period
last year and we are targeting
a similar closing inventory in
the fourth quarter of this year,
compared to last year.
The 2016 Milk Price Manual
change has added 7 cents per
kgMS to milk price for the
2017/18 season to date.
NEW ZEALAND INGREDIENTS
Q3 FY17 Q4 FY17 Q1 FY18 Q2 FY18 Q3 FY18
CHANGE
Q3 FY17
TO Q3 FY18
PRODUCTION VOLUME¹ (000 MT)
Reference products461845836834814%
Non-reference products 22171237246208(6%)
SALES VOLUME¹
,
² (000 MT)
Reference products38648128761445518%
Non-reference products 185212130180168(9%)
REVENUE¹
,
² ($ PER MT)
Reference products4,7984,6184,9284,7154,636(3%)
Non-reference products 5,7816,0945,7775,9585,555(4%)
1 Includes 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
We achieved volume growth
in three regions (up 3%) but
Oceania decreased 8% due
to New Zealand performance
challenges. Overall Consumer
and Foodservice volumes were
fl at at 4 billion LME for the nine
months to 30 April 2018.
We continued our growth
in Greater China, where
sales volumes were up 12%
in the third quarter. Other
regions outside Oceania also
experienced growth but below
our expectations. We also had
lower butter sales than forecast
because of sustained high fat
prices.
Our current forecast for the
full year is to sell an additional
130 million LMEs in Consumer
and Foodservice than the same
period last year, down from the
previous target of 400 million.
For the nine months, gross
margins declined 4% to 24%
relative to the comparable
period. With the increase in
the price of milk fats we have
seen continued demand
towards products with a lower
fat composition, sustained
competition in Greater China’s
foodservice market and further
constraints in some Asian
markets limiting our ability to
pass through costs.
ASIA
GREATER
CHINA
LATIN
AMERICAOCEANIATOTAL
VOLUME (M LME)
Nine-month FY181,3069365551,2194,016
Nine-month FY171,2848845461,3184,032
% Change2%6%2%(8%)0%
GROSS MARGIN (%)
Nine-month FY1824%22%29%20%24%
Nine-month FY1729%32%31%24%28%
CONSUMER AND FOODSERVICE NINE-MONTH PERFORMANCE
GREATER CHINA
Increased volumes in our
Consumer business came
mainly from growth in both
E-commerce and offl ine
channels. Our Foodservice
volume growth was driven by
increased market demand for
Anchor Food Professionals.
Gross margins for our Consumer
and Foodservice business were
impacted by higher input costs
and product mix changes during
this period.
OCEANIA
For the fi rst nine months of
the year volumes for Oceania
were down on the same period
last year due to increased
competition and performance
challenges in New Zealand. Our
Consumer and Foodservice
business did not fully pass
through higher input costs,
which impacted gross margins.
ASIA
The Asia region delivered
volume growth in our
Consumer and Foodservice
business. This refl ects the
strength and diversity of our
market positions across the
regions. However gross margin
for the nine-month period
declined compared to the same
period last year, due to further
constraints in some Asian
markets limiting our ability to
pass through costs.
LATIN AMERICA
Our Soprole business continues
to perform well with strong
margins through good
execution and continuous
innovation. Overall volumes for
the Latam region were up 2%
for the fi rst nine months of the
year, despite diffi cult conditions
in Venezuela and Brazil. Gross
margins were down only 2% to
29% for the fi rst nine months
of the year compared to 31%
last year.

10
OUR CO-OP
Fonterra-EECA
partnership drives 25%
reduction in emissions at
Brightwater site
Fonterra’s Brightwater
dairy factory is set to
reduce its carbon dioxide
emissions by 25% following
an industry fi rst move that
will signifi cantly reduce the
site’s reliance on coal.
Thanks to funding support
from the Energy Effi ciency
and Conservation Authority
(EECA), conversion is about to
get underway on Brightwater’s
existing coal boiler, adding
capacity to burn wood biomass
to generate steam.
The move will cut emissions
from the factory by around
2,400 tonnes a year – roughly
the same as taking 530 cars off
the road.
Fonterra Chief Operating
Offi cer Global Operations
Robert Spurway says the move
to a co-fi red boiler decreases
reliance on fossil fuels and
is a signifi cant step towards
achieving Fonterra’s emission
reduction targets.
“Last year we joined forces
with the Ministry for the
Environment to develop a
roadmap to a low emissions
future, which included a
commitment to undertake
a demonstration of co fi ring
wood biomass with coal at one
of our sites.
“Now, with the support of
EECA, we’re putting our
co-fi ring strategy into action.
Brightwater’s transition to
a lower emission energy
source is a tangible step
toward achieving our target
of reducing our Global
Operations emissions by 30%
by 2030, and our longer-term
goal of net zero emissions
by 2050.”
EECA Business Group
Manager Market Engagement
Greg Visser says the boiler
technology has the potential
to be a sustainability
game-changer.
“This is exactly the type
of demonstration project
that EECA looks to support.
Our funding helps de-risk
investment in new technology
application where there are
big emissions reductions on
off er. It’s a great opportunity for
replication across Fonterra –
and by others looking to adopt
this technology to save energy,”
says Mr Visser.
The move to convert
the existing coal boiler
at Brightwater follows a
successful trial that was
undertaken in 2017. It is
expected that the boiler will
be able to co-fi re with wood
biomass by October this year.
Te Rapa celebrates
50 years
For over half a century Te
Rapa has been a place of
work, a producer of world
class dairy, a supportive
community and, for some, it
has even been home
Te Rapa’s offi cial opening on
20 April 1968, was a milestone
which represented the
confi dence the New Zealand
Co-Operative Dairy Company
(now Fonterra) had in the
productive Waikato, dairy
farming community and its role
in the national economy.
Brian Whittington remembers
when the site was being built
and moving into the small
village on site where 35 key
staff members were housed.
“We had a real sense of
community living in that village.
There was a swimming pool,
tennis courts, a rugby fi eld
and always plenty to do when
you weren’t working. We had
inter-factory rugby and netball
competitions in the off  season.”
Brian was appointed the
dispatch driver to assist the
transport offi ce, organising the
largest milk tanker fl eet.
“I had to organise 42 tankers to
collect milk from 934 suppliers.
There was chilled and un-
chilled milk. The un-chilled
milk had to be off the farm by
12.30pm and the chilled milk
had to be off by 3.30pm.”
“Te Rapa had a lot to be proud
of and the people who worked
there have a lot to be proud of
because we worked hard and
we achieved lots of things.”
Fast forward 50 years, Te Rapa’s
dairy products have made a
signifi cant stamp on the 96
off shore markets it exports to.
From the 1,000 local farmers,
the site processes 7.5 million
litres of milk a day in peak
season – enough product to fi ll
nearly 50 shipping containers
per day.
The site has been an early
adopter of new systems
and a showcase for the milk
powder industry. Throughout
the early 2000s, innovation
and development became
increasingly signifi cant, with
automation, robotics, and
digital technology replacing
valves, buttons and paperwork.
Lindsey Pijnenburg, Processing
Advanced Operator, is in
his 35th year and over that
time has worked in several
diff erent roles.
“I’ve had the chance to work
with some great people and
have been here for expansions,
technology changes and even a
fi re.” says Lindsey.
“I remember when the plant
burnt down. There was a lot of
pressure to get it back up and
running. We used cloth nappies
and toothbrushes to clean the
entire plant – so many that we
actually cleaned New Zealand
and Australia out of nappies.”
An integral part of Fonterra’s
commitment to feeding
the world, Robert Spurway,
Fonterra Chief Operating
Offi cer Global Operations,
says “Celebrating 50 years
is a fantastic opportunity to
recognise our people who have
contributed to the success and
endurance of our Te Rapa site.”

BACK TO SUMMARY
BACK TO SUMMARY
BACK TO SUMMARY
PRODUCTION
AUSTRALIAAVERAGE
UNITED STATES
NEW ZEALANDEU27
DEC 17JUL 17JUN 17MAY 17MAR 18FEB 18JAN 18SEP 17NOV 17OCT 17AUG 17APR 18
LIQUID MILK (M LITRES)
-200
400
200
0
1,000
600
800
EXPORTS
AUSTRALIA
UNITED STATES
NEW ZEALANDEU27
AUG 17JUL 17JUN 17APR 17MAR 18FEB 18JAN 18DEC 17NOV 17OCT 17SEP 17MAY 17
MT (000s)
-60
-30
0
30
60
90
120
AVERAGE
IMPORTS
MIDDLE EAST & AFRICALATIN AMERICA
ASIACHINA
JUL 17JUN 17APR 17MAR 18DEC 17JAN 18FEB 18SEP 17NOV 17OCT 17MAY 17AUG 17
MT (000s)
-80
-40
0
160
120
40
80
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 January; China to March.
NOTE: Data for EU to January; New Zealand, US and Australia to March.
NOTE: Data for US to February; EU and Australia to March and New Zealand to April.
SOURCE: Government milk production statistics/GTIS trade data/Fonterra analysis.

BACK TO SUMMARY
BACK TO SUMMARY
WEIGHTED AVERAGE PRICEQUANTITY SOLD
APR 18MAR 18DEC 17NOV 17JAN 18JUL 17AUG 17MAY18SEP 17FEB 18OCT 17JUN 17
12,000
19,000
26,000
33,000
40,000
2,800
3,100
3,400
3,700
4,000
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)
APRIL
2018
APRIL
2017
MONTHLY
CHANGE
SEASON-
TO-DATE
2017/18
SEASON-
TO-DATE
2016/17
SEASON-
TO-DATE
CHANGE
Total Fonterra
New Zealand
120.3117.72.3%1,434.21,459.2(1.7%)
North Island65.366.7(2.1%)857.2883.4(3.0%)
South Island55.150.98.1%577.0575.80.2%
Fonterra Australia11.49.124.9%131.8104.726.0%
Fonterra GDT results
This table provides more
information on the latest
results, including a snapshot
of the year-to-date results.
LAST TRADING EVENT
(15 MAY 2018)
YEAR-TO-DATE
(FROM 1 AUGUST 2017)
Quantity Sold on GDT
(Winning MT)
17,504518,809
Change in Quantity Sold on GDT
over same period last year
(13.9%)2.5%
Weighted Average Product Price
(USD/MT)
3,7103,356
Change in Weighted Average
Product Price over same period
last year
9.5%5.2%
Change in Weighted Average
Product Price from previous event
4.2%–
Fonterra GDT Results
This chart shows Fonterra
GDT prices and volumes over
the past 12 months.

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.
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 fl uid milk products
(skim milk, whole milk
and cream – pasteurised
or UHT processed),
concentrated milk products
(evaporated milk and
sweetened condensed milk)
and yoghurt.
GDT
Global Dairy Trade, 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