Global Dairy Update June 2021

•Clean sweep at New Zealand Dairy Industry Awards .
1
Global Dairy
UPDATE
•New Zealand finishes full season up on
previous season. US and EU monthly
production up, Australia flat.
•
Incr
ease in monthly exports observed across
all regions.
•
China monthly imports continue to grow.
Latin America, Middle East and Africa and Asia
monthly imports increase.
•F
onterra's New Zealand milk collection for the
season ended 31 May 2021 was 1,539 million
kgMS, up 1.5% on prior season.
•
F
onterra’s Australian collection for May was
7.7 million kgMS, a 0.2% increase compared to
last season.
•A milk tanker with a difference.
Key Dates
31 July 2021
End of Financial Year 2021
September 2021
FY21 Annual Results
Announcement
December 2021
FCG/FSF Annual Meetings
JUNE 2021

%
%
%
%
%
%
%%
Change for May 2021
compared to May 2020
Change for May 2021
compared to May 2020
Change for April 2021
compared to April 2020
Change for April 2021 compared
to April 2020
Change for the 12 months to
May 2021
Change for the 12 months to
May 2021
Change for the 12 months to
April 2021
Change for the 12 months to
April 2021
4.60.07.6
1.30.22.3
0.8
2.6
2
OUR MARKETS
Global Production
New Zealand finishes full
season up on previous
season. US and EU monthly
production up, Australia flat
New Zealand milk
production¹ increased 7.6%
on a litres basis, (up 9.4%
on milk solids basis) in May
compared to May last year.
Despite severe flooding in
Canterbury at the end of the
month, warm temperatures
across the North Island and
Marlborough contributed
favourably to end of season
milk production.
Full season New Zealand
milk production for the 12
months to May was 2.6%
higher than last year.
Fonterra collections are
reported for May, see page 5
for details.
Australia milk
production was flat in April
compared to April last year.
Despite favourable seasonal
conditions and increased
farmer confidence, reduced
herd numbers, farm exits,
and labour shortages are
constraining milk production
growth across Australia.
Dairy Australia is forecasting
milk production to be -1% to
+1 % for the 2020/21 season.
Australia milk production for
the 12 months to April was
1.3% higher than last year.
Fonterra collections in
Australia are reported for
May, see page 5 for details.
EU milk production²
increased by 0.8% in April
compared to the same
period last year.
Strong volumes were
observed in Ireland (up
6.1%), Spain (2.2%) and
Poland (1.9%), despite
continuing declines in
Germany (down 0.7%) and
Netherlands (0.8%)
EU milk production for the
12 months to April was up by
0.2% compared to the same
period last year, driven by
higher volumes from Ireland,
Poland and Sweden.
US milk production
increased by 4.6% in May,
compared to the same
period last year.
May production last year was
affected by the pandemic
as production restrictions
were put in place by
co
-operatives. Nonetheless,
May production this year
continued to grow, driven
by sharp expansions in
herd sizes and milk per cow
yield growth.
Milk production for the 12
months to May was 2.3%
higher compared to the
same period last year.
NEW ZEALANDAUSTRALIAEUROPEAN UNIONUSA
To view a chart that
illustrates year-on-year
changes in production –
1 New Zealand production is measured in litres.
2
E
xcludes UK.

To view a chart that
illustrates year-on-year
changes in exports –
3
OUR MARKETS
Global Exports
Increase in monthly
exports observed across
all regions
Total New Zealand
dairy exports increased
by 19.8%, or 52,355 MT, in
May compared to the same
period last year.
The increase was driven by
stronger volumes of WMP,
up 22%, and fluid milk
products, up 55%, primarily
to China. There were also
increases in cheese to China
and the Middle East, up 27%,
and higher exports of casein
to the US, China and the EU,
up 185%.
Exports for the 12 months
to May were up by 3.6%, or
123,890 MT, on the previous
comparable period. This was
primarily driven by WMP,
fluid milk products and
cheese but partially offset by
declines in SMP and AMF.
EU dairy exports
increased by 8.1%, or
49,746 MT, in March
compared to the same
period last year.
March saw increased exports
of fluid milk products, and
SMP shipped to China and
cheese to Japan, but this
was partially offset by lower
demand for infant formula
from China.
Exports for the 12 months
to March were up 3.5%, or
247,576 MT, on the previous
comparable period. Fluid
milk products, whey, cheese
and lactose were the main
drivers of this growth, up a
combined 357,323 MT. It was
partially offset by declines
in SMP, MPC and MPI and
infant formula.
US dairy exports
continued to increase, up
25.7%, or 52,542 MT, in
April compared to the same
period last year.
Shipments of SMP and
whey to China continued
to strengthen in April, up a
combined 24,058 MT. Cheese
export volumes increased
by 13,612 MT, or 50%, the
highest level on record,
primarily to Mexico and
South Korea.
Exports for the 12 months to
April 2021 were up 12.1%, or
282,685 MT, on the previous
comparable period, driven by
SMP, whey, WPC and cheese,
up a combined 275,305  MT.
Australia dairy exports
increased by 37.4%, or
23,684 MT, in April compared
to the same period last year.
The large increase was
primarily driven by higher
volumes to China. Sustained
strong demand was observed
in May for fluid milk
products, up 9,362 MT, SMP,
up 7,057 MT, and cheese, up
4,463  MT.
Exports for the 12 months
to April were up 10.2%, or
74,160 MT, on the previous
comparable period.
This was predominantly
driven by increases in fluid
milk products, SMP and
butter but partially offset by
declines in infant formula.
NEW ZEALANDAUSTRALIAEUROPEAN UNIONUSA
%%%
%%%
Change for May 2021
compared to May 2020
Change for April 2021
compared to April 2020
Change for April 2021
compared to April 2020
Change for March 2021
compared to March 2021
Change for the 12 months to
May 2021
Change for the 12 months to
April 2021
Change for the 12 months to
April 2021
Change for the 12 months to
March 2021
25.737.419.8
10.23.512.1
8.1
3.6
%
%

To view a chart that
illustrates year-on-year
changes in imports –
4
OUR MARKETS
Global Imports
China monthly imports
continue to grow.
Latin America, Middle
East and Africa and Asia
monthly imports increase
Latin America dairy
import volumes¹ increased
19.3%, or 25,806 MT, in
March compared to the
same period the last year.
The increase was driven
by stronger volumes of
fluid milk products to Peru,
cheese to Mexico and Chile,
and WMP to Brazil, up a
combined 40,243 MT. This
was partially offset by lower
volumes of SMP to Mexico.
Imports for the 12 months
to March were up 3.2%, or
56,277 MT, compared to the
same period the last year.
Asia (excluding China)
dairy import volumes¹
increased 8.8%, or 36,150  MT,
in March compared to the
same period the last year.
The increase was driven by
higher volumes of SMP and
fluid milk products to the
Philippines, lactose to Japan
and cheese to Korea, up a
combined 30,121  MT.
Imports for the 12 months to
March were down 0.5%, or
22,415 MT, compared to the
same period the last year.
Declines were recorded
across WMP and whey and
offset partially by increased
volumes in lactose, cheese
and SMP.
Middle East and Africa
dairy import volumes¹
increased 3.2%, or 9,826  MT,
in March compared to the
same period the last year.
The increase was driven
predominantly by higher
volumes of fluid milk
products to Libya, infant
formula to Nigeria and
cheese to Bahrain.
Imports for the 12 months
to March were up 0.7%, or
28,041 MT, compared to
March last year, driven by
increases in WMP, SMP and
infant formula, and partially
offset by declines in fluid
milk products and butter.
China dairy import
volumes increased by
1.3%, or 3,345 MT, in May
compared to the same
period last year.
Volumes increased across
most product categories.
SMP and WMP imports hit
record levels for the month of
May, sourced primarily from
New Zealand and Australia.
Fluid milk product imports
continued to increase from
Germany, New Zealand and
Poland, and whey imports
remained strong, from the
US, France and Belarus.
Imports for the 12 months
to May were up 21.5%, or
684,569 MT, driven by fluid
milk products, whey, SMP
and WMP.
LATIN AMERICAASIAMIDDLE EAST & AFRICACHINA
1 Estimates are included for those countries that have not reported data.
%
%
%%
%
Change for March 2021
compared to March 2020
Change for May 2021
compared to May 2020
Change for March 2021
compared to March 2020
Change for March 2021
compared to March 2020
Change for the 12 months to
March 2021
Change for the 12 months to
March 2021
Change for the 12 months to
March 2021
1.3
8.819.3
0.50.7
%
Change for the 12 months to
May 2021
21.5
3.2
3.2
%
%

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 May
For the 2020/21 Season
compared to the previous season
For the 2020/21 Season
compared to the previous season
For the 2020/21 Season
compared to the previous season
Change for May 2021
compared to May 2020
Change for May 2021
compared to May 2020
Change for May 2021
compared to May 2020
Change for May 2021
compared to May 2020
0.28.028.67.7
1.01.83.91.5
VOLUME M LITRESDAY
JUNJULAUGSEPOCTNOVDECJANFEBMARAPRMAY










5
OUR MARKETS
Fonterra Milk Collection
NEW ZEALANDNORTH ISLANDSOUTH ISLANDAUSTRALIA
New Zealand Milk Collection
Fonterra's Australia
collection in May was
7.7 million kgMS, a 0.2%
increase on May last season.
Favourable autumn
conditions across Victoria
and Tasmania has meant
stable milk production
in May.
Season-to-date collection
was 1.0% down on last
season, with favourable
on-farm conditions
throughout the season
stabilising milk production.
North Island milk
collection in May was
38.6 million kgMS, 28.6%
higher than May last season.
May collections continued
the strength seen in April,
benefiting from warm
and sunny weather with
useful rainfall in many
areas giving favourable
growing conditions.
Full season collection was
908.3 million kgMS, 3.9%
ahead of last season.
South Island milk
collection in May was
36.7 million kgMS, behind
8.0% on May last season.
Collections for South Island
began to drop off more
quickly during the second
half of May than in recent
seasons. The heavy rain
in the last weekend of the
month caused flooding in
some areas, with disruption
to collections as a result.
Full season collection was
630.9 million kgMS, behind
1.8% on last season.
Fonterra's New Zealand
collection for May was
75.3 million kgMS, 7.7%
higher than May last season.
Collection for the 2020/21
season was 1,539.2 million
kgMS, 1.5% ahead of
last season.
May started with settled
weather across the country
before rain arrived for
western areas towards
the middle of the month.
Warmer and drier conditions
returned in the second half
of the month, with already
dry regions of both islands
missing out on meaningful
rainfall. Temperatures were
above May average across
the country, and sunshine
hours higher than average
for most regions.
%%%

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





,

,

,

.

.

.

.

.
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 exchange rate stabilised
around 71 US cents - balanced
between New Zealand’s strong
economic performance in
recent months which supported
the NZD; while inflationary
pressures in the United States
have increased the risk of US
interest rates rising faster which
supported the USD’s value.
Fonterra GDT results at
last trading event
15 June 2021:
The next trading event will be held on 6 July 2021. Visit www.globaldairytrade.info for more information.
Change in Fonterra’s
weighted average product
price from previous event
1.4
Fonterra’s weighted
average product price

(USD/MT)
4,140
USD
Fonterra product quantity
sold on GDT
000’ MT
20.7
NORTH ASIA (INCLUDING CHINA)
SOUTH EAST ASIA
MIDDLE EAST AND AFRICA
LATIN AMERICA
OTHER
USD 4,612/MT
1.7
BUTTER
USD 5,687/MT
0.6
AMF
USD 3,389/MT
1.6
SMP
USD 4,328/MT
0.1
CHEDDAR
USD 3,997/MT
1.6
WMP
20,677
MT
LATEST AUCTION
622,468
MT
FINANCIAL
YEAR‑TO‑DATE

7
Our Performance
Fonterra Responsible
Dairying Award
The prestigious award
was introduced by the
New Zealand Dairy
Industry Awards and
Fonterra to recognise dairy
farmers who demonstrate
leadership in their approach
to sustainability.
Waikato farmers
Pete Morgan and
Ann Bouma were this
year’s winners, receiving
the John Wilson Memorial
Trophy. Fonterra CEO
Miles Hurrell presented the
award and says Pete and Ann
are excellent ambassadors
for our industry.
“Pete, Ann and the other
finalists are driving positive
change in our industry
and are great role models,
producing milk that is
backed by the quality and
sustainability credentials that
customers now expect and
need. People want to know
that their milk is coming
from farmers that care for
the environment, animals,
people and communities.”
Share Farmer of the Year
Manoj Kumar and Sumit
Kamboj are driven,
professional and high-
achieving siblings who
benchmark excellence within
the industry.
“The New Zealand dairy
farming system is totally
different from back home
in India and it really appeals
to us,” they say. “It’s very
rewarding as we can see the
improvements we make on-
farm and there is a culture
unlike any other industry.”
Dairy Manager of the Year
Christopher Vila was
a veterinarian in the
Philippines before he moved
to New Zealand 13 years
ago and began a career in
dairying as a farm assistant.
The judges describe
Christopher as a humble,
competent and passionate
dairy farmer who sets
high standards for himself
and staff.
“He’s completely engaged in
his role but also understands
the importance of getting
off-farm and spending
time with his wife and
young daughter.”
Dairy Trainee of the Year
Ruth Connolly was
applauded by judges who
said she was a polished,
articulate, considered, with
a broad understanding of
different industry issues.
“Ruth is constantly pushing
for perfection. She has a
huge love and respect for
the cows, the land and the
people. She has an insatiable
thirst for knowledge which,
coupled with specific and
high-reaching goals, will
stand her in good stead.”
NZDIA Lifetime Achievement
Award
Jeff Bolstad, a Morrinsville
farmer, was recognised
for his long service and
contribution to the Dairy
Industry Awards and wider
agriculture sector.
NZDIA Trust Chair
Natasha Tere says this is
the first time this award has
been presented.
“It’s a prestigious honour
that is awarded to an
individual that has provided
exceptional service to
the New Zealand Dairy
Industry Awards. We have
chosen Jeff as he has been
a bonding strength behind
our organisation. Jeff has a
pure love and passion for
aspiring dairy farmers and
has been a guiding light, a
father figure and confidante
to many while on their
Awards journey.”
Clean sweep at
New Zealand Dairy
Industry Awards
Fonterra farmers once again impressed at the New Zealand Dairy Industry Awards, winning all
four 2021 main titles, plus an NZDIA Lifetime Achievement Award.
The winners were:
• Fonterra Responsible Dairying Award – Pete Morgan and Ann Bouma
• NZ Share Farmer of the Year – Manoj Kumar and Sumit Kamboj
• NZ Dairy Manager of the Year – Christopher Vila
• NZ Dairy Trainee of the Year – Ruth Connolly
• NZDIA Lifetime Contribution Award – Jeff Bolstad.
For more on the
New Zealand Dairy Industry
Awards –

Our Co-op
8
A milk tanker with a
difference
Tens of thousands of
farmers and members of
the public have been the
first to experience a brand
new addition to Fonterra’s
milk tanker fleet at Fieldays
in Waikato – an interactive
showcase of what makes the
Co-op Good Together.
The tanker experience allows
visitors to share their own
memories of Fonterra in the
video booth, play a ‘Milk
Mayhem’ game and even
give tanker driving a go on
our realistic simulator.
“It’s Fonterra’s 20th birthday
this year and a good chance
to reflect on all the amazing
work that we’ve done
together. We believe the
experience we’ve created
celebrates being Good
Together while having a bit
of fun!” says Andrea Perez,
General Manager
Co-operative Experience.
It’s exciting to be back at
Fieldays after the annual
event at Mystery Creek
was cancelled in 2020
because of COVID – the first
time since the agricultural
showcase started over half a
century ago.
Multiple teams from within
our Co-op have worked
tirelessly over the past few
months to bring the Fonterra
Good Together tanker
experience to life. Everyone
agrees that the highlight of
the project so far has been
the collaboration.
“It’s been awesome to
have teams from very
different parts of the
business come together
to achieve such a fantastic
result. We had people
from all across National
Transport - fleet, dispatch,
transport depots, third
party vendors – working
alongside Co-op Experience
and it’s been such a positive
experience,” Tanker Planning
& Dispatch Manager,
Malcolm Bailey says.
While our farmers and
other Fieldays attendees
got the first peek, there will
be plenty of opportunities
for more people to see and
experience the interactive
tanker throughout
New Zealand. It will be going
on a year-long roadie from
the top of the North, to the
bottom of the South Island,
visiting Fonterra sites and
other locations as it goes.
Fieldays
As the Southern
Hemisphere’s largest
agricultural event, Fieldays
has always been a highlight
of the agricultural calendar.
There are over 1,000
exhibitors, 130,000 visitors
and a global audience reach
of over 23 million people.
The event generates
around NZ$500 million
of sales and revenue for
New Zealand firms.
The experience is
highly interactive
with stories, games
and even a tanker
simulator.

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
SEP AUG JUN MAY FEB MAR APR NOV JAN DEC JUL OCT 
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 and Australia to April; New Zealand and US to May.
NOTE: Data for EU to March; US and Australia to April; New Zealand to May.
NOTE: Data for Asia, Middle East & Africa and Latin America to March; China to May.
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 

,

,
,
,

,

,
,

,

,
,


,
,
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)
M AY
2021
M AY

2020
MONTHLY
CHANGE
SEASON-
TO-DATE
2020/21
SEASON-
TO-DATE
2019/20
SEASON-
TO-DATE
CHANGE
Total Fonterra
New Zealand
75.369.97.7%1,539.21,517.11.5%
North Island38.630.028.6%908.3874.63.9%
South Island36.739.9(8.0%)630.9642.5(1.8%)
Australia7.77.70.2%99.9100.9(1.0%)
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 JUNE 2021)
YEAR-TO-DATE

(FROM 1 AUGUST 2020)
Quantity Sold on GDT
(Winning MT)
20,677622,468
Change in Quantity Sold on GDT
over same period last year
0.0%(2.8%)
Weighted Average Product Price
(USD/MT)
4,1403,535
Change in Weighted Average
Product Price over same period
last year
37.6%8.1%
Change in Weighted Average
Product Price from previous event
(1.4%)–
Fonterra GDT results
This chart shows Fonterra
GDT prices and volumes over
the past 12 months.

11
AMENA
Africa, Middle East, Europe,
North Asia, Americas.
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.
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