Global Dairy Update August 2018

1
GLOBAL DAIRY
UPDATE
AUGUST 2018
KEY DATES
13 September 2018
FY18 Annual Results
Announcement
12 November 2018
Fonterra Shareholders' Fund
Annual Meeting
1 December 2018
Compliance Date for Share
Standard 2018/19 Season
December 2018
FY19 Q1 Business Update
• Early season New Zealand production
assisted by favourable weather conditions.
Australian production decreased in June over
previous period.
• Exports down in New Zealand and Australia
for June. Growth continues in Europe and
the US.
• Latin America, Asia and Middle East and
Africa imports record double‑digit growth
in April.
• Fonterra’s early season milk collection across
New Zealand for the two months to 31 July
reached 31 million kgMS. This represents less
than 3% of the full season forecast.
• Anchor announces the addition of the a2 Milk™ brand by
Anchor to its milk portfolio.
• Chinese commuters are now able to enjoy Anchor’s
extra‑stretchy mozzarella as they travel the world’s largest rail
network thanks to a new supply agreement with Pizza Seven.
• Fonterra is transitioning from coal to renewable energy at its
Stirling site in Otago.

%%%
To view a chart that
illustrates year‑on‑year
changes in production –
2
OUR MARKETS
GLOBAL PRODUCTION
EARLY SEASON
NEW  ZEALAND
PRODUCTION ASSISTED BY
FAVOURABLE WEATHER
CONDITIONS. AUSTRALIAN
PRODUCTION DECREASED IN
JUNE OVER PREVIOUS PERIOD
Total New Zealand milk
production increased
6% in July, compared to
the same month last year
on the back of favourable
weather conditions in some
parts of the country for milk
production and calving. In
addition, production growth
was supported by an increase
in farms participating in
winter milking. This early
in the season, June and
July account for only a
small portion of total
milk production for the
full season.
For the 12 months to July,
milk production was flat
compared to the same
period last year.
Fonterra collections have
been reported for July, see
page 5 for details.
Australian milk
production decreased 1%
in June compared to the
same period last year due
to rising costs and scarcity
of key on‑farm inputs such
as water, cereals and fodder,
the costs of which are now
trending substantially above
long‑term averages.
Production for the 12 months
to June was up 3% compared
to the same period the
previous year.
This annual growth
continues to be driven by
Victoria and Tasmania.
Fonterra collections in
Australia have been reported
for July, see page 5 for details.
EU milk production
increased 1% in June
compared to the same
period last year, but is facing
above average temperatures
and water restrictions across
some parts of Europe.
While there was growth
in June, there are signs of
hot weather impacting
Germany and other dairy
producing areas.
Production for the 12 months
to June was up 3% compared
to the same period the
previous year.
US milk production
increased 1% in June
compared to the same
period last year.
This was driven by a
combination of higher
production per cow, along
with an increase in milking
cows compared to the same
period last year.
Milk production for the
12 months to June increased
by 1% compared to the same
period the previous year.
NEW ZEALANDAUSTRALIAEUROPEAN UNIONUSA
Production change
for the 12 months to
June 2018
Production change
for the 12 months to
July 2018
Production change
for the 12 months to
June 2018
Production change

for the 12 months to
June 2018
0313
%

%%
To view a chart that
illustrates year‑on‑year
changes in exports –
%%
3
OUR MARKETS
GLOBAL EXPORTS
EXPORTS DOWN IN
NEW  ZEALAND AND
AUSTRALIA FOR JUNE.
GROWTH CONTINUES IN
EUROPE AND THE US
Total New Zealand dairy
exports decreased 16%,
or 46,000 MT, in June
compared to the same
period last year driven by
WMP, down 42,000  MT.
Growth in AMF and infant
formula continued, up a
combined 9,000 MT, partially
offsetting the decline.
Exports for the 12 months
to June were down 2%, or
52,000 MT, on the previous
comparable period. This was
driven by lower volumes
across WMP, AMF, cheese
and SMP, which were down
a combined 104,000  MT.
Continued gains in fluid
and fresh dairy and infant
formula, up a combined
76,000 MT, reduced
the decline.
EU dairy exports increased
by 2%, or 11,000 MT, in
April compared to the same
period last year.
This was primarily due to
strong growth in the infant
formula and fluid and
fresh dairy categories, up a
combined 17,000 MT, or 11%.
A decline in whey powder
of 3,000 MT softened
this increase.
Exports for the 12 months
to April were up 7%, or
333,000 MT, on the previous
comparable period. This was
driven by growth across the
five largest categories, fluid
and fresh dairy, cheese, SMP,
infant formula and whey, up
364,000 MT, or 10%.
US dairy exports increased
by 15%, or 30,000 MT, in
June on the back of strong
production. SMP and lactose
were the primary growth
categories, up 16,000 MT, or
21%, over the same period
last year.
Exports for the 12 months
to June were up 9%, or
196,000 MT, on the previous
comparable period.
Growth continued to
be seen across most
categories, especially SMP
and lactose, which have
grown by 41,000 MT and
38,000 MT respectively. This
wide‑spread growth was
partially reduced by declines
in fluid and fresh dairy, down
10,000  MT.
Australian dairy exports
decreased 5%, or 4,000  MT,
compared to the same
period last year. This was
due to SMP and fluid and
fresh dairy, down a combined
6,000 MT. This decrease
was mostly offset by gains in
cheese and infant formula,
up a combined 3,000  MT.
Exports for the 12 months
to June were up 5%, or
36,000 MT, on the previous
comparable period.
Fluid and fresh dairy and
infant formula comprised
the majority of growth, up
a combined 40,000  MT.
These gains were offset by
a continued decline in the
WMP and butter categories
of 11, 000  MT.
NEW ZEALANDAUSTRALIAEUROPEAN UNIONUSA
95
2
7
Export change for the 12
months to June 2018
Export change for the 12
months to June 2018
Export change for the 12
months to June 2018
Export change for the 12
months to April 2018

%%%
%
To view a chart that
illustrates year‑on‑year
changes in imports –
4
OUR MARKETS
GLOBAL IMPORTS
LATIN AMERICA, ASIA
AND MIDDLE EAST AND
AFRICA IMPORTS RECORD
DOUBLE‑DIGIT GROWTH
IN  APRIL
Latin American dairy
import volumes¹ increased
13%, or 20,000 MT, in April
compared to the same
period last year. This increase
was driven by the three
largest import categories,
SMP, cheese and fluid and
fresh dairy, which were up a
combined 13,000 MT, or 15%,
for the period.
Imports for the 12 months
to April were up 1%, or
14,000 MT, compared
to the same period the
previous year. SMP and whey
powder led the increase,
up 84,000 MT combined.
However, a decline in WMP
of 77,000 MT, offset some of
the increase.
Asia (excluding China)
dairy import volumes¹
increased 19%, or 65,000  MT,
in April compared to the same
period last year. Increased
demand was seen across
most categories. SMP, WMP
and fluid and fresh dairy
reported the largest gains,
up 47,000 MT, while lactose
and caseinate were down
1,000  MT.
Imports for the 12 months
to April were up 2%, or
103,000 MT, compared to the
same period the previous year.
WMP and cheese continued
to show strong growth, up
a combined 103,000  MT.
Declines in lactose and AMF
of a combined 32,000  MT,
offset these increases.
Middle East and Africa
dairy import volumes¹
increased 11%, or 37,000  MT,
in April, compared to the
same period last year. Growth
was seen across most
major categories driven by
WMP, fluid and fresh dairy
and butter, up a combined
27,000 MT. Cheese and infant
formula declined, down a
combined 7,000  MT.
Imports for the 12 months
to April were up 5%, or
193,000 MT, compared to
the same period the previous
year. SMP, fluid and fresh
dairy and cheese were up
a combined 181,000  MT.
Import growth was offset by
a continued decline in WMP,
down 37,000  MT.
China dairy import
volumes² increased 3%,
or 7,000 MT, in March
compared to the same period
last year. This was driven by
a combined 14,000 MT, or
22%, growth in fluid and
fresh dairy, butter and lactose
categories. Declines in WMP
of 6,000 MT partially offset
this growth.
Imports for the 12 months
to March were up 17%, or
394,000 MT, compared to
the same period last year.
Strong demand out of China
continued 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 April 2018
Import change for the 12
months to April 2018
Import change for the 12
months to April 2018
217
5
1
1 Estimates are included for those countries that have not reported data.2 China has suspended trade data, citing system technical issues. Based on exports to
China, we estimate April volumes grew 19% compared to the previous comparable period.

%%%%
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 2018/19 SEASON
NEW ZEALANDNORTH ISLANDSOUTH ISLANDAUSTRALIA
Increase for the season from
1 June to 31 July
Increase for the season from
1 June to 31 July
Increase for the season from
1 June to 31 July
Decrease for the season
from 1 July to 31 July
7813
6
NEW ZEALAND MILK COLLECTION
Fonterra’s milk
collection across
Australia in July, the first
month of the 2018/19
season reached 8 million
kgMS, down 6% on the
same period last season.
Rising costs and availability
of key on‑farm inputs
including water, cereals
and fodder, which are now
trending substantially
above long‑term
averages, combined with
a deteriorating seasonal
outlook will more than
likely impact milk supply
this season.
North Island milk
collection in July was
16 million kgMS, 3% higher
than July last season.
This was driven by good
pasture conditions in
central districts as a
result of favourable
weather conditions.
North Island milk collection
for the 2018/19 season to
date was 26 million kgMS,
up 7%.
South Island milk
collection in July was
2 million kgMS, 19% higher
than July last season.
Favourable weather
conditions, particularly
in Canterbury, along with
growth in winter milk
contracts have contributed
to this increase.
South Island milk collection
for the 2018/19 season to
date was 5 million kgMS,
up 13%.
Fonterra’s early season
milk collection across
New Zealand for the
two months to 31 July
reached 31 million
kgMS. This represents
less than 3% of the full
season forecast.
New Zealand collections in
July were 18 million kgMS,
4% up on the same month
last season.
These volumes are small
in the context of the full
season, as is usual for this
time of the year. The increase
is being driven primarily
by favourable weather
and pasture conditions
in the North Island. In
addition, growth in winter
milk contracts, have also
contributed to supply.

%%
%%%
To view more information,
including a snapshot of the
rolling year‑to‑date results –
%
6
%
GDT PRICE INDEXNZDUSD SPOT RATE
AUG  MAY 
OCT 
JAN 
MAR JUN AUG OCT  DEC  MAR 
AUG 






,
,
,
. 
. 
.

.


.

.

.

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 New Zealand dollar
traded flat in July. Continued
strength in US economic
data along with rising trade
tensions helped keep the
New Zealand dollar down
around two‑year lows.
Fonterra GDT results at
last trading event
21 August 2018:
The next trading event will be held on 4 September 2018. Visit www.globaldairytrade.info for more information.
Change in Fonterra’s
weighted average product
price from previous event
2.9
Fonterra’s weighted
average product price

(USD/MT)
3,073
USD
Fonterra product quantity
sold on GDT
000’ MT
31.4
NORTH ASIA (INCLUDING CHINA)
SOUTH EAST ASIA
MIDDLE EAST AND AFRICA
LATIN AMERICA
OTHER
USD 5,138/MT
3.4
RENNET CASEIN
USD 1,956/MT
1.5
SMP
USD 2,883/MT
2.5
WMP
USD 3,484/MT
4.9
CHEDDAR
USD 5,321/MT
6.8
AMF
USD 4,392/MT
8.5
BUTTER
31,405
MT
LATEST AUCTION
64,566
MT
FINANCIAL
YEAR‑TO‑DATE

7
OUR PERFORMANCE
Anchor announces
addition of the a2 Milk™
brand by Anchor to its
milk portfolio
Partnering with The a2 Milk
Company (a2MC), Anchor is
proud to continue its strong
heritage of quality nutrition
by offering natural fresh milk
with only the A2 beta casein
protein as an additional
option to Kiwi households.
Fonterra Brands
New Zealand Acting Sales
Director Grant Watson says
he is confident a2 Milk™ by
Anchor will prove popular.
“a2 Milk™ by Anchor is set to
give consumers more choice
and we’re really pleased to
bring another great tasting
fresh milk option to Kiwi
households. Anchor already
has 10 varieties of milk
and will continue catering
to a variety of diets, ages
and stages so that as many
people as possible have the
option to consume milk
products,” says Watson.
“The a2 Milk Company is
delighted to be entering
into this partnership with
Fonterra, and pleased
to be finally providing
our a2 Milk™ brand to
New Zealanders for the
first time,” says The a2 Milk
Company Managing Director
and CEO Jayne Hrdlicka.
“Especially given this is
where our company was
founded,” she added.
While most cows carry both
A1 and A2 proteins, a2 Milk™
by Anchor is a great tasting
fresh milk from herds that
produce milk naturally free
of the A1 protein.
Hrdlcka says, “New Zealand
produces some of the
highest‑quality dairy
products in the world and
the addition of a2 Milk™
to Anchor’s portfolio will
prove to be beneficial for
New Zealanders.”
a2 Milk™ brought to you by
Anchor is available in Blue
and Lite 1 and 2 litre Anchor
Light Proof™ bottles in Pak ‘n
Save and New World North
Island stores. Full nationwide
distribution of a2 Milk™ can
be expected from October.
Chinese commuters
are now able to enjoy
Anchor’s extra‑stretchy
mozzarella as they travel
the world’s largest rail
network thanks to a new
supply agreement with
Pizza Seven.
Pizza Seven is one of our
foodservice customers in
China and has recently
become the designated
pizza supplier for the
Chinese high‑speed trains
Jim Ruan, VP of Foodservice
says it’s exciting to know
millions of commuters will
be trying our mozzarella.
“Pizza is a popular snack
for commuters. It’s quick
and easy to eat. This deal
means the snack will be
offered on more than 2,000
of China’s high‑speed train
routes.” Jim says the Anchor
logo will also be printed on
pizza packages.
“Having the Anchor logo on
tens of thousands of pizza
boxes will be a game‑changer
for our brand recognition.
It means millions of train
passengers will get to know
Anchor, reinforcing its great
reputation.” The logo was
added because Chinese
customers appreciate a
premium product.
“Anchor resonates with
consumers, who know they
can trust our New Zealand
product. That's important in
a market like China where
food safety is a top concern.”
Pizza is fast becoming an
obsession in China. Our
Co‑op is one of China’s
biggest cheese suppliers
eating 30,600 MT a year.
Demand for mozzarella
cheese made at our
Clandeboye and Whareroa
sites is predicted to continue
to grow.
Pizza Seven has been a
customer of our Co‑op since
2013. They purchase around
200 MT of cheese every year,
mainly Anchor Extra Stretch
Shredded Mozzarella Cheese.
China’s high‑speed rail
network is the largest in the
world. It is 25,000 km long
and passengers clocked up
1.7 billion trips in 2017. That’s
a lot of trips to enjoy pizza.
Jordan Valley Farm
• NAIT (National Animal Identifi cation & Tracing) is a programme that helps to prevent the spread of livestock diseases by swiftly
containing and identifying any source of infections
• It is imperative that we maintain 100% compliance with the use of this system- the recent Mycoplasma Bovis outbreak is an import-
ant reminder of the risk involved if this is not the case
• LIC are our NAIT provider- if you record movements in MINDA they are also shadowed automatically through the NAIT system
• However NAIT (not MINDA) is the regulatory system of record that MPI checks etc - so need to reconcile that NAIT is correct as well
• However if you are using a vendor that doesn’t use MINDA (will apply for some graziers, bull agents etc) then these animal move-
ments must be recorded directly into NAIT
• If you are unsure of how to correctly use the NAIT system please contact your Ops Manager
KEY STEPS: TAG/REGISTER/ RECORD & CONFIRM
If you send animals to a NAIT
accredited sale yard or meat
processor, they will record
the movement on your
behalf.
If you receive animals
from a NAIT accredited
sale yard you will need to
record the movement.
This includes:
Movements between Fonterra
farms if greater than 20km.
Movements for external
winter grazing, bulls, private
sales.
Must be tagged within 6
months or before being
moved off farm.
Movements must be
recorded within 2 days.
Register your animals in
the NAIT system within 7
days of being tagged.
animaltrace.nait.co.nz
By Erin Hamilton & Nicola McCarthy
Innesmoor Farm
Supports the A2
Partnership
Our Innesmoor farm at
Longburn has had a busy few
months preparing to supply
A2 milk in the new partner-
ship deal between Fonterra
and A2 milk. Nicola McCarthy,
Kyran Brown and the team at
Innesmoor have been busy
bringing together the A2
herd, completing testing and
audits ready for the launch.
Current demand estimates for a2 Milk™ products in
NZ indicate a relatively small percentage of the New
Zealand milk pool is needed to service demand over
the next few years, hence why a NM farm has been
chosen for early supply.
Innesmoor was selected given its proximity to Palm-
erston North, where the a2 Milk™ by Anchor will be
processed for now.
The milk will be sold via Fonterra’s strategic part-
nerships with Foodstuff s who will make it available
fi rstly in New World and Pak'n'Save stores in the North
Island. It will be available to the rest of the country by
October.
With a new season upon us and with another 12 months experience under our
belts around new farm systems across the NM farms, we have taken time to
work through some refi nements to our NM strategy. Our goal of Sustainably
Managing Nutrients for the co-op is unchanged and we are continually looking
at ways to manage more and new nutrient streams to keep our manufacturing
sites humming.
As our sites renew their consents, improve their wastewater treatment and
add higher value products to their production mix (notably cream cheese and
mozzarella), NM must fi nd new ways to return nutrients to land or fi nd other
sustainable uses for these by-products.
Focus for F19 therefore will be on
• Finishing the transition out of dairy and
into cut and carry and grazing models
on our Waikato farms
• Refi ning our cut and carry models to
ensure we optimise the exporting of
nutrients – and provide more of our
shareholders with all important quality
supplements ( and thereby support our
Farm Source blueprint goal of Sustain-
able Dairying )
• Staying profi table in dairy on 9 of our NM farms, while making sure irrigation
capacity is not compromised
• Increasing our SI sales of PROLIQ given the signifi cant extra volumes coming
from Clandeboye and Edendale
• Finding new and profi table uses for the DAF and WAS coming from our sites
– exploring more land spreading of these nutrients, compost operations and
stock food options
• Telling our NM story and opening our farms up to Fonterra shareholders and
the wider community.
NM Team Refine Their Strategy
NAIT- A Key Compliance Focus for
Nutrient Management Farms

8
OUR CO‑OP
Fonterra to electrify
Stirling site
This month Fonterra
announced it is transitioning
from coal to renewable
energy at its Stirling site in
Otago. The move will reduce
Fonterra’s coal use by more
than 9,700 tonnes per year
–about the same weight as
122 Boeing 737‑800s.
With no gas or feasible
alternatives available in
the South Island, Fonterra
has used coal in its plants
to ensure it can process its
perishable milk.
Reinforcing the shift toward
renewable energy, Fonterra
has also surrendered its
Mangatangi coal mining
permit, divested nearly 50%
of land acquired for coal
mining and will no longer
mine coal.
The new moves are part
of the pathway Fonterra
mapped out with the
Government last year to
achieve net zero emissions
across its manufacturing
sites by 2050.
Robert Spurway, Fonterra’s
COO Global Operations, said
these latest initiatives show
Fonterra’s commitment to
a net zero emissions future
and that the Co‑operative is
playing its role in helping the
country meet its obligations
under the Paris Agreement.
“Our targets are ambitious
and our commitment to
meeting them is resolute,
because there is no
alternative with climate
change,” Mr Spurway said.
“With 30 manufacturing
sites across the country the
challenge ahead of us is
clear but we understand the
importance of getting on
with it to help the country
meet its international
(climate change) obligations.”
“We’re confident that our
continued investment in
technology will help us
achieve our targets and
encourage others to invest
in new technologies and
innovation too. Achieving
New Zealand’s climate
ambitions requires a
sustained and collaborative
approach with business,
government and NGOs.”
By year’s end, Fonterra
will have divested a total
of 296 hectares of land
that had been acquired
for coal mining – an area
the combined size of
Christchurch’s Hagley Park,
the Auckland Domain and
New Plymouth’s Pukekura
Park. Planning is underway
for the change of energy
supply at Stirling and
learnings from this project
will then be replicated across
similar sites.
“The juggle of meeting our
commitments by 2050,
ensuring we don’t disrupt
the processing of our
farmers fresh milk, getting
the right information and
finding the best technology
to make these changes at
sites is a logistical tightrope,”
Mr Spurway said.
He noted the momentum
Fonterra has already built
this year to make the
changes, including:
• A switch to co‑firing
biomass at the Brightwater
site near Nelson, due to go
live by November.
• Reduction in use of
ground water by 70% at its
Darfield plant.
• And at Pahiatua site,
the introduction of an
employee’s innovative idea
for water recycling, leading
to a saving of 500,000
litres of water a day.
“We’re serious about
supporting New Zealand’s
commitment to the Paris
Agreement and the global
goal of keeping temperature
change to well below two
degrees,” Mr Spurway said

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











,









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








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









AVERAGE
9

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 EU, US and Australia to June; New Zealand to July.
NOTE: Data for EU to April; New Zealand, US and Australia to June.
NOTE: Data for Asia, Middle East and Africa and Latin America to April; estimate for China in April and May.
SOURCE: Government milk production statistics/GTIS trade data/Fonterra analysis.

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

,

,
,
,
,
,

,
,
,
,
WEIGHTED AVERAGE PRICE USDMT
QUANTITY SOLD  MT
10

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)
J U LY
2018
J U LY

2017
MONTHLY
CHANGE
SEASON-
TO-DATE
2018/19
SEASON-
TO-DATE
2017/18
SEASON-
TO-DATE
CHANGE
Total Fonterra
New Zealand
17.917.24.0%31.229.07.7%
North Island16.015. 72.5%26.424.86.8%
South Island1.91.618.9%4.84.212.8%
Fonterra Australia7.68.1(5.8%)7.68.1(5.8%)
Fonterra GDT results
This table provides more
information on the latest
results, including a snapshot
of the year‑to‑date results.
LAST TRADING EVENT
(21 AUGUST 2018)
YEAR-TO-DATE

(FROM 1 AUGUST 2018)
Quantity Sold on GDT
(Winning MT)
31,40564,566
Change in Quantity Sold on GDT
over same period last year
0.1%2.4%
Weighted Average Product Price
(USD/MT)
3,0733,121
Change in Weighted Average
Product Price over same period
last year
(9.3%)(7.9%)
Change in Weighted Average
Product Price from previous event
(2.9%)–
Fonterra GDT Results
This chart shows Fonterra
GDT prices and volumes over
the past 12 months.

11
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
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