Global Dairy Update September 2021

• Record shipment year for Fonterra despite supply
chain challenges.
• On 23 September, Fonterra announced its Annual
Results, provided Long-term Strategy and a new Capital
Structure proposal.
For further details,
view our website –
1
Global Dairy
UPDATE
• Milk volumes down in New Zealand and
Australia. EU monthly production shows
decline. US monthly production up.
• New Zealand and EU monthly exports decline.
Australia and US monthly exports continue
to grow.
• China, Middle East and Africa and Latin
America imports increase. Asia monthly
imports decline.
• Fonterra New Zealand milk collection in
August was 96.7 million kgMS, down 4.0% on
the prior season.
• Fonterra Australia milk collection for
August was 6.8 million kgMS, down 5.9% on
last season.
• Cleaning water with nature.
Key Dates
9 December 2021
Fonterra Co-operative Group
Annual Meeting
13 December 2021
Fonterra Shareholders' Fund
Annual Meeting
December 2021
FY22 Q1 Business Update
SEPTEMBER 2021

%
%
%%
%
%
%%
Change for August 2021
compared to August 2020
Change for August 2021
compared to August 2020
Change for July 2021
compared to July 2020
Change for July 2021
compared to July 2020
Change for the 12 months to
August 2021
Change for the 12 months
to August 2021
Change for the 12 months
to July 2021
Change for the 12 months
to July 2021
1.13.54.8
0.20.22.4
0.3
2.4
2
OUR MARKETS
Global Production
Milk volumes down in
New Zealand and Australia.
EU monthly production
shows decline. US monthly
production up
New Zealand milk
production¹ decreased
4.8% on a litres basis, (down
4.2% on milk solids basis) in
August compared to August
last year.
Following a good start to the
season, pasture conditions
were impacted as a result of
colder and wetter weather in
August compared to a mild
August last year.
New Zealand milk
production for the 12 months
to August was 2.4% lower
than last year.
Fonterra collections are
reported for August, see
page 5 for details.
Australia milk
production decreased 3.5%
in July compared to July
last year.
Wetter and cooler than
average winter conditions
impacted total milk
production. Tasmania
and Victoria productions
were down 6.5% and
4.5%, respectively.
Dairy Australia is forecasting
milk production growth
of 0% to +2% for the
2021/22 season.
Australia milk production for
the 12 months to July was
0.2% higher than last year.
Fonterra collections in
Australia are reported for
August, see page 5 for details.
EU milk production²
decreased 0.3% in July
compared to the same
period last year.
Lower production volumes
were observed across key
producing countries such
as France, Netherlands and
Germany and were partially
offset by higher volumes in
Italy and Ireland.
EU milk production for the
12 months to July was up
0.2% compared to the same
period last year, driven by
higher volumes from Ireland,
Italy, Poland and Sweden.
US milk production
increased by 1.1% in August,
compared to the same
period last year.
Production growth slowed
in August compared to
prior months. Lower milk
yield per cow and herd
size contractions were
observed due to higher
feed costs. Sustained heat
in some regions was also
a contributor to the lower
growth rate.
Milk production for the 12
months to August was 2.4%
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 Excludes UK.

To view a chart that
illustrates year-on-year
changes in exports –
3
OUR MARKETS
Global Exports
New Zealand and EU
monthly exports decline.
Australia and US monthly
exports continue to grow
Total New Zealand dairy
exports decreased by
12.9%, or 19,133 MT, in August
compared to the same
period last year.
The decrease was driven by
lower shipment volumes
of WMP and cheese to
China in August compared
to August last year. SMP
export volumes to Southeast
Asia continued to grow and
partially offset the decrease.
Exports for the 12 months to
August were up by 4.5%, or
153,458 MT, on the previous
comparable period. This
was primarily driven by
WMP, fluid milk products
and cheese.
EU dairy exports
decreased 2.8%, or
18,710 MT, in June compared
to the same period last year.
June exports saw lower
demand for infant formula
from China, cultured
products, WMP from Oman
and for butter from the US,
down a combined 27,999  MT.
This was partially offset by
strong volumes of fluid milk
products to China.
Exports for the 12 months
to June were up 0.6%, or
46,911 MT, on the previous
comparable period. Fluid
milk products, whey, ice
cream and cheese were the
main drivers of this growth.
US dairy exports
increased 7.4%, or 16,324  MT,
in July compared to the same
period last year.
Strong demand for cheese
from Mexico and Japan
as well as whey and WPC
from China are driving this
increase. This was partially
offset by lower SMP export
volumes to the Philippines
and Indonesia.
Exports for the 12 months to
July 2021 were up 8.8%, or
216,340 MT, on the previous
comparable period driven by
whey, SMP, WPC and butter,
up a combined 212,851  MT.
Australia dairy exports
increased 50.5% (34%
excluding fluid milk
products), or 28,113 MT, in
July compared to the same
period last year.
Sustained high demand for
fluid milk products is driving
this increase as well as SMP
and cheese to China. Higher
demand for SMP from
Kuwait and for cheese from
Japan were also observed.
Exports for the 12 months
to July were up 13.6%, or
98,252 MT, on the previous
comparable period.
This was predominantly
driven by increases in fluid
milk products, SMP and
WMP but partially offset by
declines in infant formula.
NEW ZEALANDAUSTRALIAEUROPEAN UNIONUSA
%%%
%%%
Change for August 2021
compared to August 2020
Change for July 2021
compared to July 2020
Change for July 2021
compared to July 2020
Change for June 2021
compared to June 2020
Change for the 12 months
to August 2021
Change for the 12 months
to July 2021
Change for the 12 months
to July 2021
Change for the 12 months
to June 2021
7.450.512.9
13.60.68.8
2.8
4.5
%
%

To view a chart that
illustrates year-on-year
changes in imports –
4
OUR MARKETS
Global Imports
China, Middle East and
Africa and Latin
America

imports increase. Asia
monthly imports
decline
Latin America dairy
import volumes¹ increased
8.8%, or 14,433 MT, in June
compared to the same
period last year.
The increase was driven by
stronger volumes of cheese
as well as lactose and whey
to Mexico. This was partially
offset by a decrease of WMP
to Chile and Cuba.
Imports for the 12 months
to June were up 5.0%, or
86,819 MT, compared to the
same period last year.
Asia (excluding China)
dairy import volumes¹
decreased 2.8%, or
12,237 MT, in June compared
to the same period last year.
The decrease was driven by
lower demand for SMP and
lactose to Philippines and
Indonesia but partially offset
by increased demand for
WMP and cheese.
Imports for the 12 months
to June were down 0.3%,
or 17,084 MT, compared to
the same period last year
driven by large volumes of
WMP, and SMP, and partially
offset by fluid milk products
and lactose.
Middle East and
Africa
dairy import vol
umes¹
increased 18.8%, or
60,595 MT, in June compared
to the same period last year.
The increase was driven
predominantly by higher
imports of fluid milk
products by the United Arab
Emirates and of cheese by
Saudi Arabia and Iraq.
I
mports for the 12 months
to June were up 7.5 %, or
274,701 MT, compared to
June last year driven by
increases in infant formula,
fluid milk products, cheese
and ice cream.
China dairy import
volumes continued
to increase by 27.2 %,
or 77,218 MT, in August
compared to the same
period last year, with
sustained high demand
across most categories.
Import volumes of WMP
continued to show record
levels in August, primarily
from New Zealand. Fluid milk
products import volumes
from Germany also showed
strong year-on-year growth.
This was partially offset by a
continuing decline in infant
formula year-on-year.
Imports for the 12 months to
August were up 27.0 % driven
by fluid milk products, whey,
WMP and SMP and offset by
decreases in infant formula.
LATIN AMERICAASIAMIDDLE EAST & AFRICACHINA
1 Estimates are included for those countries that have not reported data.
%
%
%%
%
Change for June 2021
compared to June 2020
Change for August 2021
compared to August 2020
Change for June 2021
compared to June 2020
Change for June 2021
compared to June 2020
Change for the 12 months
to June 2021
Change for the 12 months
to June 2021
Change for the 12 months
to June 2021
27.2
2.88.8
0.37.5
%
Change for the 12 months
to August 2021
27.0
18.8
5.0
%
%

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 2021
compared to August 2020
Change for August 2021
compared to August 2020
Change for August 2021
compared to August 2020
Change for August 2021
compared to August 2020
5.98.72.34.0
0.811.70.12.8
VOLUME M LITRESDAY
JUNJULAUGSEPOCTNOVDECJANFEBMARAPRMAY










5
OUR MARKETS
Fonterra Milk Collections
NEW ZEALANDNORTH ISLANDSOUTH ISLANDAUSTRALIA
New Zealand Milk Collection
Fonterra's Australia
collection for August, the
second month of the new
season, was 6.8 million
kgMS, a 5.9% decrease on
August last season.
The decrease was driven by a
lower third-party collections
(down -66%) compared to
August last season. Farm
milk collections increased by
2% year-on-year.
Season-to-date collections
reached 12.2 million kgMS,
0.8% behind last season.
North Island milk
collection in August
was 71.8 million kgMS,
2.3% lower than August
last season.
Season-to-date collection
was 101.7 million kgMS, 0.1%
ahead of last season.
Central North Island regions
saw some heavy rain and
damaging winds early in
the month, and some areas
around Auckland received
heavy rain causing flooding
at the end of the month.
Overall, however, North
Island rainfall was near
normal for August.
South Island milk
collection in August
was 24.9 million kgMS,
8.7% lower than August
last season.
Season-to-date collection
was 29.2 million kgMS, 11.7%
behind last season.
Western areas recorded well
above average rainfall for
August with multiple fronts
from Fiordland to Farewell
Spit. The rest of the South
Island experienced more
typical August weather than
last year, with cold snaps
and periods of heavy rain
impacting milk production.
Fonterra's New Zealand
collection for August was
96.7 million kgMS, 4.0%
lower than the same month
last season.
Season-to-date collection
was 130.9 million kgMS, 2.8%
behind last season.
New Zealand experienced
strong westerlies during
August, bringing heavy rain
and cold temperatures,
with snow in some regions.
This was starkly different to
August last season, where
New Zealand recorded its
warmest winter on record.
As a result, both North and
South Island collections
for August were down on
last season.
%%%
%
%

%%%
%%
To view more information,
including a snapshot of the
rolling year-to-date results –
%
6
GDT PRICE INDEXNZDUSD SPOT RATE
SEP  APR SEP DEC 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
The NZD peaked in early
September as the recent
COVID-19 outbreak receded
and RBNZ rhetoric suggested
an OCR increase was likely in
October. However, risk aversion
in global financial markets later
increased and this saw the
NZD decline back to 70 US
cents as the USD strengthened.
Fonterra GDT results at
last trading event
21 September 2021:
The next trading event will be held on 5 October 2021. Visit www.globaldairytrade.info for more information.
Change in Fonterra’s
weighted average product
price from previous event
2.0
Fonterra’s weighted
average product price

(USD/MT)
4,056
USD
Fonterra product quantity
sold on GDT
000’ MT
23.7
NORTH ASIA (INCLUDING CHINA)
SOUTH EAST ASIA
MIDDLE EAST AND AFRICA
LATIN AMERICA
OTHER
USD 4,857/MT
1.8
BUTTER
USD 3,777/MT
2.3
WMP
USD 5,962/MT
0.1
AMF
USD 3,312/MT
0.6
SMP
USD 4,274/MT
1.2
CHEDDAR
23,692
MT
LATEST AUCTION
93,086
MT
FINANCIAL
YEAR‑TO‑DATE

7
Record shipment year
for Fonterra despite
supply chain challenges
In a year of supply chain
challenges and strong
demand for dairy, a massive
team effort and the power
of partnership have helped
Fonterra ship more product
than in any other year. The
Co-op shipped a total of
2.59 million metric tonnes,
an increase of more than
4% year-on-year for the year
ending 31 July.
Fonterra COO
Fraser Whineray says that,
Kotahi, a joint partnership
between the Co-operative
and Silver Fern Farms, has
been the key to this year’s
result. “But it’s not just
Fonterra that’s seen benefits
from this. Through the scale
that Kotahi brings with its
strategic partnership with
Maersk, many other Kiwi
companies have been able
to get their product off our
shores. “I hear New Zealand
Wool Services has also had a
good year with their export
volumes of containers up
on the previous 12 months.
I know there have been
some challenges this year
but there are also some
great Kiwi success stories
out there.”
Jason Stewart, Shipping
Manager at New Zealand
Wool Services echoes
this and says there have
been challenges, but
the partnership has paid
dividends. “We have been
in a position to keep our
product moving through
the long-term partnership
we’ve had with Kotahi which
has given New Zealand
Wool Services a level of
competitive advantage
that others in the market
don’t have.”
The supply chain has faced
a raft of challenges this year
including shipping schedule
integrity plunging from a
long-term average of 80%
to below 35% in the year.
“If that wasn’t bad enough,
there were temporary port
closures and restrictions as
well as container shortages”,
says Gordon Carlyle,
Fonterra Director of Global
Supply Chain. Gordon says
the critical event team
played an important part
in applying some creative
thinking to finding solutions
to some big challenges.
“They worked tirelessly to
co-ordinate our response
across about 800 people
– mostly our supply chain
people and 100 in Kotahi
and Coda, our supply
chain partners.”
Reworks or re-planning of
the end-to-end chain was
required due to changes
in vessel arrivals, jumped
by 350% in 2021 from the
year before.
“Being able to achieve this
result whilst knowing that we
have also reduced our supply
chain cost by 20% since 2015
in real terms is extremely
satisfying,” says Gordon. “The
resilience of our supply chain
has been a real differentiator
with customers this year and
we couldn’t have achieved
this without Kotahi.”
Kotahi CEO David Ross
warns it’ll still be hard graft
for some time to come. “We
continue to see operational
bottlenecks from port
congestion, vessel delays and
port omissions which means
we aren’t receiving shipping
capacity and containers
in the time period that
exporters require, making it a
challenge to get products to
export markets.”
“We now are working closely
with our customers and
partners to build stability
into the ocean freight
network, as we prepare for
a challenging new season
ahead,” he says.
Established by Fonterra and
Silver Fern Farms about
10 years ago, Kotahi works
with exporters, importers
and industry partners to
create a sustainable, more
efficient supply chain.
Our Performance

Cleaning water
with nature
Our Maungaturoto site has
been using nature to reduce
its water usage by up to 25%.
In a first of its kind for
Fonterra, evaporator
condensate (water extracted
from milk) is redirected
through a natural wetland
before being further treated
and re-used at the site.
Maungaturoto is one of
six water constrained sites
across the country that are
working to reduce water use
by 30% by 2030.
By recycling up to 700,000
litres of water a day through
the wetland the site has
been able to to reduce its
reliance on Kaipara District
Council supply – giving the
community more security of
water supply.
Water is a precious taonga
(treasure) and it’s important
we look after it for the good
of everyone. Recent drought
and infrastructure failures
impacting water supply
to the site mean it’s more
important than ever that
we do what we can to limit
our impact.
Maungaturoto
Environmental Manager,
Stuart Glen says he could
see the circular way to clean
water from site as the only
way to do it.
“I started with the Co-op a
little over two years ago, and
the idea for cleaning site
water by using the wetland
as a natural bioreactor had
been looked at but faced a
few challenges.”
“It has required thinking
outside of the box and a
multi-faceted approach to
overcome these challenges
including maintaining
the wetland’s ecosystem,
ensuring food safety quality,
and not interrupting the
sites efficiency to operate,”
says Stuart.
Fonterra has worked closely
with Kaipara District Council
on integration with their
water supply and has support
from Northland Regional
Council and Te Uri o Hau
(local iwi) for the initiative.
“The reclaimed
water is
treated using the natural
wetland and our
water
treatment plant before it is
reused throughout the site,
including for drinking water. ”
“We’ve taken a holistic,
circular and nature-based
approach to look at how we
could work in part nership
with nature. By providing the
right amount of nutrients for
the native plants and habitat
to thrive promotes greater
biodiversity within the
wetland,” says Stuart.
This initiative is a model
that could be implemented
at some of our other
manufacturing sites across
New Zealand, and also
around the world.
T
his water saving initiative
is also a finalist in this year’s
Sustainable Business
Awards.
Our Co-op
8

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 July; New Zealand and US to August.
NOTE: Data for EU to June; US and Australia to July; New Zealand to August.
NOTE: Data for Asia, Middle East & Africa and Latin America to June; China to August.
SOURCES: Government milk production statistics (DCANZ, Dairy Australia, Eurostat, USDA)/GTA 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)
AUGUST
2021
AUGUST

2020
MONTHLY
CHANGE
SEASON-
TO-DATE
2021/22
SEASON-
TO-DATE
2020/21
SEASON-
TO-DATE
CHANGE
Total Fonterra
New Zealand
96.7100.7(4.0%)130.9134.6(2.8%)
North Island71.873.5(2.3%)101.7101.60.1%
South Island24.927.2(8.7%)29.233.0(11. 7%)
Australia6.87.3(5.9%)12.212.3(0.8%)
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 SEPTEMBER 2021)
YEAR-TO-DATE

(FROM 1 AUGUST 2021)
Quantity Sold on GDT
(Winning MT)
23,69293,086
Change in Quantity Sold on GDT
over same period last year
(28.4%)(28.6%)
Weighted Average Product Price
(USD/MT)
4,0563,937
Change in Weighted Average
Product Price over same period
last year
30.4%29.4%
Change in Weighted Average
Product Price from previous event
2.0%–
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.