Global Dairy Update September 2020

• Exploring consumer trends in China
• Fonterra’s Te Awamutu site fires up on pellet power
• On 18 September Fonterra announced its Annual Results.
1
Global Dairy
UPDATE
• Favourable start to the New Zealand season.
Beginning of new season in Australia. EU and
US production improves.
• Strong increase in US and EU monthly
exports. New Zealand and Australia monthly
exports decrease.
• China, Latin America and Asia show strong
increase in monthly imports.

• Fonterra’s New Zealand milk collection for
the third month of the new season was
100.7 million kgMS, up 3.2% on prior season.
• Fonterra's Australia milk collection has had
a favourable start to its new season with the
first two months ahead of last season.
• Fonterra targets community support where it's needed most.
• Helping to get a COVID-19 vaccine.
Key Dates
5 November 2020
Fonterra Co-operative Group
Annual Meeting
9 November 2020
Fonterra Shareholders' Fund
Annual Meeting
December 2020
FY21 Q1 Business Update
20 April 2021
Compliance Date for
2020/21 Season
SEPTEMBER 2020
For further details,
view our website –

%
%
%%
%
%
%%
Change for August 2020
compared to August 2019
Change for August 2020
compared to August 2019
Change for July 2020
compared to July 2019
Change for July 2020
compared to July 2019
Change for the 12 months
to August 2020
Change for the 12 months
to August 2020
Change for the 12 months
to July 2020
Change for the 12 months
to July 2020
1.82.95.3
0.60.21.6
1.5
0.2
2
OUR MARKETS
Global Production
Favourable start to the
New Zealand season.
Beginning of new season
in Australia. EU and US
production improve
New Zealand milk
production¹ was up 5.3%
on a litres basis in August
compared to August
last year.
Mild conditions have
contributed to the favourable
start of the season’s
production. However, it is
still early in the season and
season-to-date production
represents only around 9%
of full year production.
New Zealand milk
production for the 12 months
to August was 0.2% lower
than last year.
Fonterra collections are
reported for August, see page
5 for details.
Australia milk
production increased 2.9%
in July compared to July
last year.
A mild winter for much of
Australia and across key
dairy regions in Victoria and
Tasmania have improved
the milk production outlook
for FY21. Dairy Australia has
forecast a 1% to 3% increase
in production for the
2020/21 season.
Australia milk production for
the 12 months to July was
0.6% higher than last year.
Fonterra collections in
Australia are reported for
August, see page 5 for details.
EU (including UK) milk
production increased by
1.5% in July compared to the
same period last year.
The increase in production
was led by France (up 2.7%)
and Ireland (4.4%) and
partially offset by continuing
declines from Italy.
EU milk production for the
12 months to July was down
by 0.2% compared to the
same period last year.
US milk production
increased by 1.8% in August,
compared to the same
period last year.
Increasing herd size
and milk per cow gains
are contributing to the
year-on-year improved US
milk production in August.
Milk production for the
12 months to August was
1.6% higher compared to the
same period last year.
NEW ZEALANDAUSTRALIAEUROPEAN UNION/UKUSA
To view a chart that
illustrates year-on-year
changes in production –
1 New Zealand production is measured in litres.
Note: 2020 production numbers include one extra day of production in February as 2020 is a leap year.

To view a chart that
illustrates year-on-year
changes in exports –
3
OUR MARKETS
Global Exports
Strong increase in US
and EU monthly exports.
New Zealand and Australia
monthly exports decrease
Total New Zealand
dairy exports decreased
by 6.1%, or 16,413 MT, in
July compared to the same
period last year.
This decrease in exports was
spread across most products
categories and regions
except for increased volumes
of WMP (up 9,479 MT) to
China and South East Asia.
Exports for the 12 months to
July were down by 1.3%, or
45,866 MT, on the previous
comparable period. This was
primarily driven by SMP,
AMF, fluid milk products
and cheese.
EU (including UK)
dairy exports increased
by 17.8%, or 80,757 MT, in
June compared to the same
period last year.
This was driven by
increases across most
product categories but
more specifically in lactose
(up 59%), butter (73.8%),
fluid milk products (25%) and
cheese (15.9%).
Exports for the 12 months
to June were up 5.9%, or
323,745 MT, on the previous
comparable period. Butter,
cheese, fluid milk products
and whey were the main
drivers of this growth, up a
combined 292,954 MT. It was
partially offset by a decline in
SMP of 61,324  MT.
US dairy exports
increased 21.5%, or 38,845  MT,
in July compared to the same
period last year.
Growth in exports volumes
were driven by increased
shipment of SMP to South
East Asia (up 52.8%), and
whey to China (up 25.8%).
Exports for the 12 months to
July 2020 were up 9.8%, or
220,143 MT on the previous
comparable period, driven by
SMP, WPC and lactose, up a
combined 205,435  MT.
Australia dairy exports
decreased by 1.4%, or
836 MT, in July compared to
the same period last year.
This was primarily driven
by infant formula, SMP and
WMP, down a combined
3,248 MT, and partially offset
by fluid milk products, up a
combined 1,422  MT.
Exports for the 12 months
to July were down 8.4%, or
66,391 MT, on the previous
comparable period.
Declines were recorded
across a broad range of
products with SMP, infant
formula, cheese, WMP, whey,
and butter, down a combined
64,594 MT and partially
offset by fluid milk products,
up 11, 170  MT.
NEW ZEALANDAUSTRALIAEUROPEAN UNION/UKUSA
%
%
%%
%
%
%%
Change for July 2020
compared to July 2019
Change for July 2020
compared to July 2019
Change for July 2020
compared to July 2019
Change for June 2020
compared to June 2019
Change for the 12 months
to July 2020
Change for the 12 months
to July 2020
Change for the 12 months
to July 2020
Change for the 12 months
to June 2020
21.51.46.1
8.45.99.8
17.8
1.3

To view a chart that
illustrates year-on-year
changes in imports –
4
OUR MARKETS
Global Imports
China, Latin America
and Asia show strong
increase in
monthly imports
Latin America dairy
import volumes¹ increased
20.4%, or 27,568 MT, in June
compared to the same period
last year. This was driven by
higher volumes of cheese and
fluid milk products to Mexico
and Chile, SMP to Cuba and
Columbia, and WMP to Chile,
up a combined 22,435  MT.
Imports for the 12 months to
June 2020 were down 1.6%,
or 28,272 MT, compared
to the same period the
previous year.
Decreases were driven
primarily by infant formula,
WMP and butter, down a
combined 49,224 MT but
partially offset by increases in
SMP, up 25,783  MT.
Asia (excluding China)
dairy import volumes¹
increased 13. 7% or 53,032  MT,
in June compared to the same
period last year. Increases
were recorded primarily in
SMP to South East Asia,
lactose to South East Asia
and Pakistan and WPC to
Malaysia, up a combined
50,358  MT.
Imports for the 12 months
to June were down 3.7%, or
185,372 MT, compared to the
same period the previous year.
Decreases were recorded
across WMP, SMP and
fluid milk products, down a
combined 234,188 MT and
offset partially by increased
volumes of lactose, up
33,973  MT.
Middle East and Africa
dairy import volumes¹
increased 1.4%, or 4,562  MT,
in June 2020 compared
to the same period last
year. Increases were driven
principally by increased
volumes of WMP and SMP
to Algeria and Nigeria,
up a combined 39,561 MT
and largely offset by lower
volumes of fluid milk
products and infant formula.
Imports for the 12 months to
June 2020 were down 8.8%,
or 357,763 MT, compared
to June last year, driven
by decreases in fluid milk
products, infant formula and
cheese, down a combined
378,555 MT and offset by
increases in SMP.
China dairy import
volumes increased by
17.6%, or 46,993 MT, in
July compared to the same
period last year.
The increase was the result
of higher volumes of whey,
fluid milk products and
cheese, up a combined
41,184 MT. China is rebuilding
its stocks of whey following
the impact of last year’s
African Swine Flu on whey
consumption as animal feed.
Imports for the 12 months
to July were up 8.0% driven
by fluid milk products, whey
and WMP.
LATIN AMERICAASIAMIDDLE EAST & AFRICACHINA
1 Estimates are included for those countries that have not reported data.
%
%
%%
%
%
%
Change for June 2020
compared to June 2019
Change for July 2020
compared to July 2019
Change for June 2020
compared to June 2019
Change for June 2020
compared to June 2019
Change for the 12 months
to June 2020
Change for the 12 months
to June 2020
Change for the 12 months
to June 2020
17.6
13.720.4
3.78.8
%
Change for the 12 months
to July 2020
8.0
1.4
1.6

To view a table that shows our
detailed milk collection in New
Zealand and Australia compared
to the previous season –
%
%
%%
%%
Season to date
1 July to 31 August
Season to date
1 June to 31 August
Season to date
1 June to 31 August
Season to date
1 June to 31 August
Change for August 2020
compared to August 2019
Change for August 2020
compared to August 2019
Change for August 2020
compared to August 2019
Change for August 2020
compared to August 2019
4.13.23.23.2
0.54.52.93.3
VOLUME M LITRESDAY
JUNJULAUGSEPOCTNOVDECJANFEBMARAPRMAY







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

5
OUR MARKETS
Fonterra Milk Collection
NEW ZEALANDNORTH ISLANDSOUTH ISLANDAUSTRALIA
New Zealand Milk Collection
Fonterra's Australia
collection in August, the
second month of the 2020/21
season, was 7.3 million kgMS,
a 4.1% increase on August
last year.
After a dry start to winter, the
La Niña system developing
for August and into spring has
contributed to the favourable
start to the season.
North Island milk collection
in August was 73.5 million
kgMS, up 3.2% on August
last season.
Season-to-date collection was
101.6 million kgMS, ahead
2.9% on last season
South Island milk collection
in August was 27.2 million
kgMS, up 3.2% on August
last season.
Season-to-date collection was
33 million kgMS, up 4.5% on
last season.
Fonterra's New Zealand
collection for August was
100.7 million kgMS, 3.2%
ahead of the same month
last season.
Season-to-date collection was
134.6 million kgMS, up 3.3%
on the same point last season.
These volumes are small in the
context of the full season, as is
usual at this time of the year.
Generally mild conditions
continued across the country
through August, with
New Zealand experiencing its
warmest winter on record.
Combined with a useful
amount of rain towards the
end of the month, this allowed
good pasture growth and
condition, and supported good
collections for August.
%
%

%%
%%%
To view more information,
including a snapshot of the
rolling year-to-date results –
%
6
GDT PRICE INDEXNZDUSD SPOT RATE
SEP  APR SEP NOV FEB APR JUL SEP NOV  FEB JUL 



,
,
.
.
.
.
.
PRICE INDEX
NZD  USD
OUR MARKETS
Fonterra Global Dairy Trade Results
Fonterra GDT sales
by destination:
Dairy commodity
prices and New
Zealand dollar trend
Ongoing fiscal support,
combined with accommodative
monetary policies have
provided an environment
supportive of growth. Globally,
financial markets stabilised
further, including currencies,
resulting in the NZD to trading
in a relatively narrow band of
between 66 and 68 US cents.
Fonterra GDT results at
last trading event
15 September 2020:
The next trading event will be held on 6 October 2020. Visit www.globaldairytrade.info for more information.
Change in Fonterra’s
weighted average product
price from previous event
4.5
Fonterra’s weighted
average product price

(USD/MT)
3,111
USD
Fonterra product quantity
sold on GDT
000’ MT
33.1
NORTH ASIA (INCLUDING CHINA)
SOUTH EAST ASIA
MIDDLE EAST AND AFRICA
LATIN AMERICA
OTHER
USD 3,674/MT
7.2
CHEDDAR
USD 3,910/MT
1.5
AMF
USD 2,985/MT
3.5
WMP
USD 3,282/MT
1.5
BUTTER
USD 2,918/MT
9.2
SMP
33,075
MT
LATEST AUCTION
130,424
MT
FINANCIAL
YEAR‑TO‑DATE

7
Exploring consumer
trends in China
Fonterra’s quest to keep
up with the fast-paced
consumer market in China
has received a boost,
with the opening of its
refurbished innovation
centre in Shanghai,
dedicated to developing
innovative products suited to
the Chinese market.
It’s a collaboration with
certification and analysis
test centre Anchor Centre
for Certification (ACC)
and will be known as the
Fonterra-ACC Shanghai
Innovation Centre.
It includes a number of
laboratories, complete with
research and development
(R&D) capabilities, and
an analysis and testing
centre. ACC is involved
mainly in food and
agricultural research and
development/product
testing and certifications,
following international food
safety standards.
The Co-operative’s team
will work on product
development for all Fonterra
Greater China’s key dairy
product categories (e.g.
cream, yoghurt, soft
serve, process cheese,
liquid dairy, milk powder).
Their work will include
product development,
sensory testing, consumer
science, nutrition science
and packaging.
Fonterra has been in the
Chinese market for more
than 40 years and working
with ACC to develop this
centre demonstrates
the Co-op’s ongoing
commitment to Chinese
customers and consumers,
which is already extensive.
Fonterra’s ingredients
business NZ Milk Products
(NZMP) provides dairy
products to more than 100
food manufacturers and
its Foodservice business
services 20,000 customers
with more than 400,000
stores in 350 cities
across China.
CEO of Fonterra Greater
China Teh-han Chow says
now with an innovation
centre located within the
country, the Co-operative’s
bringing innovation closer
than ever to Chinese
customers and consumers.
“China is one of the fastest-
growing food and beverage
markets in the world. The
Fonterra-ACC Shanghai
Innovation Centre can
further help our business
be closer to the changes
and preferences of China’s
consumer market, so that we
can develop new products
which meet market needs
more quickly and efficiently,”
says Mr Chow.
Fonterra's CFO of Greater China
Paul Washer leading a tour of
the facility
Our Performance

8
Fonterra’s Te Awamutu
site fires up on pellet
power
It’s full steam ahead on
wood pellets at Fonterra’s
Te Awamutu site, with
commissioning underway, as
the site takes the next step in
its transition away from coal.
The Co-operative announced
the Te Awamutu site’s move
to renewable energy at
the beginning of the year,
with the site previously
using a mix of coal, gas and
electricity to process milk.
Fonterra Chief Operating
Officer Fraser Whineray
says sustainability is core to
the Co-operative’s long-
term strategy and while
COVID-19 has presented
some challenges, they’ve
still managed to complete
the decarbonisation project
at Te Awamutu before the
spring milk arrived.
“We did have some delivery
delays with certain offshore
components, and I’m pleased
with the outcome thanks to
our team and suppliers.
“It’s really important
sustainability
investments like this are
maintained despite the
pandemic challenges.”
The move away from coal
at Te Awamutu is part of
Fonterra’s plans to have
net zero emissions at its
manufacturing sites by
2050. Once completed, the
transition at Te Awamutu will
reduce the Co-operative’s
national coal consumption
by almost 10 per cent, saving
more than 84,000 tonnes of
carbon emissions per year –
the same as taking 32,000
cars off the road.
“It’s a positive step towards
meeting our interim target
of achieving a 30 per cent
reduction in emissions by
2030 and shows us what can
be achieved by using wood
biomass to decarbonise our
manufacturing sites.”
Fraser says partnering has
been important in reaching
this sustainability milestone.
“We value our partnerships
with Natures Flame
and Energy Efficiency
Conservation Authority
(EECA) – they are integral to
major projects like this.”
Natures Flame, who produce
the wood pellets, say they
are delighted to have
partnered with Fonterra
to make the change to
sustainable wood pellets as
smooth as possible.
“It’s a great environmental
story on all fronts. Our
pellets are made from
renewable, plantation-based
fibre residues from local
sawmills in the form of
sawdust and shavings. We
use renewable geothermal
energy to transform the
residues into a premium
and reliable fuel, which
customers like Fonterra can
then use to reduce their
greenhouse emissions.
“We welcome Fonterra
as a customer and look
forward to working
together on this and other
future opportunities”, says
John Goodwin, Operations
Manager, Natures Flame.
EECA CEO Andrew Caseley
says industrial process
heat makes up a little over
a quarter of the country’s
energy-related emissions.
“There’s enormous potential
in New Zealand to bring
those emissions down
significantly by moving
away from coal, as Fonterra
is doing.
“This is the largest boiler
conversion project to
biofuels to date, so our
funding via the technology
demonstration programme
will help to derisk it. It also
has the added benefit of
establishing a more viable
and large-scale wood pellet
supply chain.”
Our Performance

Fonterra targets
community support
where it's needed most
Fonterra targets community
support where it's needed
most Fonterra is taking
a new approach to how
it provides nutrition to
communities, to better reach
those most in need across
New Zealand.
CEO Miles Hurrell says, as a
New Zealand farmer owned
co-op, with employees
spread right across regional
New Zealand, Fonterra is
part of many communities.
“We’ve taken a good look at
what the country is facing
into, particularly in the
context of COVID-19, and
asked if our current way of
doing things is supporting
the people who need it most.
“We can see there’s a need
for us to expand our thinking
and take a more holistic
approach that reaches more
people – which is why we’re
making these changes,” says
Mr Hurrell.
As part of its new approach,
Fonterra’s growing KickStart
Breakfast alongside partners
Sanitarium and the Ministry
of Social Development.
There are already more than
1,000 schools in KickStart
Breakfast, and one of
Fonterra’s immediate goals
is to work with partners
to have all decile 1 to 5
schools across the country
in KickStart Breakfast –
reaching another 200
schools – where coming
together over breakfast at
the start of the school day
really makes a difference.
The Co-op’s also extending
supply of dairy nutrition
further into communities
by partnering with
NZ Food Network to
distribute dairy products
to charities, foodbanks and
community partners.
That’s because it’s not just
in schools where Fonterra
can play a role. The Co-op
saw this first-hand during
lockdown earlier this year,
when it redirected close
to one million serves of
Fonterra Milk for Schools
product into communities
through food banks, charities
and other partners. Coming
together with NZ Food
Network allows this work
to continue.
NZ Food Network CEO
Gavin Findlay says “NZFN
is delighted to partner
with Fonterra to deliver
much needed goodness
into the communities of
Aotearoa New Zealand. This
complements our own desire
of ‘getting food to where
it’s needed most’. Working
together, we will strive to
ensure everyone has access
to healthy, nutritious food.”
This refreshed approach
means Fonterra Milk for
Schools, which is for primary
school aged children, will
wrap-up at the end of this
year. It’s something the
Co-op’s loved being a part
of, but Fonterra knows it can
provide more kids access to
dairy nutrition by growing
KickStart Breakfast which
is open to all schools, of
all ages and deciles, across
the country.
“We’ve got a lot of affection
for Fonterra Milk for Schools,
but we have to recognise
through this refresh there’s
a much more efficient,
environmentally focused and
impactful way to get milk to
more kids each day.
“It will be an end of an era
and we’re proud of what
Fonterra Milk for Schools
has achieved but times have
changed and so will we, to
ensure we’re always doing
our best for those who need
it the most,” says Mr Hurrell.
Papatoetoe North School
principal Stan Tiatia says “our
school community makes
high use of the KickStart
Breakfast programme and
for us it is a time for whanau,
staff and children to connect
and start the day in a positive
state. The programme helps
to build community and in
times affected by anxiety
and isolation the KickStart
breakfast time provides an
opportunity for connection
and care. We are grateful for
the work by the KickStart
team and know that our
community is strengthened
by their efforts.”
“These changes reflect
our co-operative heart –
good things happen when
people come together,” says
Mr Hurrell.
Our Co-op
9

Helping to get a COVID
vaccine
When COVID-19 first hit
New Zealand’s shores
Fonterra stepped up to
help make hand sanitiser
and some of its employees
volunteered their time to
make face masks. Now the
Co-op’s offering another
hand – this time to help
develop a vaccine.
Fonterra’s doing that
by lending a crucial
piece of equipment – a
small homogeniser – to
the Covid-19 Vaccine
Corporation (CVC) to help
speed up the company’s
efforts towards producing a
vaccine in New Zealand.
Fonterra Director of
Category, Strategy and
Innovation, Mark Piper, says
it’s good to be able to assist
in such an important cause.
“We always like to help out
where we can, so when the
team came and asked if they
could borrow a homogeniser
from the Fonterra Research
and Development Centre,
we quickly worked to free
up the equipment for CVC.
This could be good not
just for CVC but good for
New Zealand and the rest of
the world.”
CVC Chief Executive
Dr Robert Feldman says
the process of developing a
vaccine requires “the use of
many types of specialised
equipment, some of
which can be challenging
to get access to. We are
therefore very pleased to
be able to access Fonterra’s
resources and apply
sophisticated equipment
to the manufacture of our
vaccine candidate.”
Developing a vaccine is
a technical process that
involves the production
of tiny biobeads that’re
coated in protein or
polypeptide. CVC is coating
these biobeads in carefully
chosen components
from the SARS-Cov-2
virus. The biobeads and
coating are simultaneously
manufactured inside bacteria
which is an efficient method
of production.
Fonterra’s equipment is
being used to break open
the bacteria in which
CVC’s vaccine biobeads are
made. “Once the biobeads
are released, we remove
contaminating bacterial
residues and end up with
a pure vaccine preparation
ready for injection,” says CVC
Chief Operating Officer Dr
Andy Herbert.
The partnership between
Fonterra and CVC
follows the Government’s
announcement that it’s
contributing hundreds
of millions of dollars to
onshore and offshore efforts
to produce and obtain
a COVID-19 vaccine for
New Zealanders and their
Pacific partners.
Dr Robert Feldman says
CVC’s vaccine “uses an
approach that is different
from other candidates being
developed around the world.”
He adds, CVC believes it
“will generate a strong and
broad immune response
while being efficient
to manufacture.”
The company estimates
its first clinical trials would
take place at the start of
2022 and would cost around
$8 million to complete. It’s
already in partnership with
the University of Auckland,
Callaghan Innovation, and
Ardigen. And by getting a
helping hand from Fonterra,
there’s a better chance they’ll
keep that ambitious schedule
to help New Zealanders
against COVID-19.
Our Co-op
10

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











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










AVERAGE
IMPORTS
MIDDLE EAST & AFRICALATIN AMERICA
ASIACHINA
SEP AUG JUN MAY FEB MAR APR NOV JAN DEC JUL OCT 
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 EU/UK and Australia to July; New Zealand and US to August.
NOTE: Data for EU/UK to June; New Zealand, Australia and US to July.
NOTE: Data for Asia, Middle East & Africa and Latin America to June; China to July.
SOURCE: Government milk production statistics/GTIS trade data/Fonterra analysis.

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


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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)
AUGUST
2020
AUGUST

2019
MONTHLY
CHANGE
SEASON-
TO-DATE
2020/21
SEASON-
TO-DATE
2019/20
SEASON-
TO-DATE
CHANGE
Total Fonterra
New Zealand
100.797.63.2%134.6130.33.3%
North Island73.571.23.2%101.698.72.9%
South Island27.226.43.2%33.031.64.5%
Australia7.37.04.1%12.312.4(0.5%)
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 SEPTEMBER 2020)
YEAR-TO-DATE

(FROM 1 AUGUST 2020)
Quantity Sold on GDT
(Winning MT)
33,075130,424
Change in Quantity Sold on GDT
over same period last year
(9.8%)(7.9%)
Weighted Average Product Price
(USD/MT)
3,1113,043
Change in Weighted Average
Product Price over same period
last year
(6.5%)(7.6%)
Change in Weighted Average
Product Price from previous event
4.5%–
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 Products
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.
MENA
Middle East – North Africa.
MPC
Milk Protein Concentrate.
Non-Reference Products
All dairy products, except
for Reference Products,
produced by the NZ
Ingredients business.
NZMP
New Zealand Milk Products.
Reference Products
The dairy products used
in the calculation of the
Farmgate Milk Price, which
are currently WMP, SMP,
BMP, butter and AMF.

Glossary
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.
WPC
Whey Protein Concentrate