Global Dairy Update October 2021

• Fonterra's foodservice business hits $3 billion in
annualised revenue.
1
Global Dairy
UPDATE
• Lower volumes in New Zealand and Australia.
US monthly production flat.
• New Zealand exports up, Australia and
US monthly exports continue to grow. EU
monthly exports decline.
• China, Latin America and Middle East and
Africa monthly imports decline. Asia monthly
imports up.
• Fonterra New Zealand milk collection in
September was 173 million kgMS, down 3.8%
on the prior season.
• Fonterra Australia milk collection for
September was 10.4 million kgMS, down 4.3%
on last season.
• Women taking the wheel.
Key Dates
3 December 2021
FY22 Q1 Business Update
9 December 2021
Fonterra Co-operative Group
Annual Meeting
13 December 2021
Fonterra Shareholders' Fund
Annual Meeting
OCTOBER 2021

%
%
%%
%
%
%%
Change for September 2021
compared to September 2020
Change for September 2021
compared to September 2020
Change for August 2021
compared to August 2020
Change for August 2021
compared to August 2020
Change for the 12 months to
September 2021
Change for the 12 months
to September 2021
Change for the 12 months
to August 2021
Change for the 12 months
to August 2021
0.23.74.3
0.20.32.1
1.2
1.3
2
OUR MARKETS
Global Production
Lower volumes in
New Zealand and
Australia. US monthly
production flat
New Zealand milk
p
roduction¹ decreased
4.3% on a litres basis (down
4.0% on a milk solids basis)
in September compared to
September last year
A
colder and wetter
start to spring this
season compared to last
September is impacting
production volumes.
New Zealand milk

production for the 12 months
to September was 1.3%
higher on a litres and milk
solids basis than last year.
Fonterra New Zealand
collections are reported
for September, see page 5
for details.
Australia milk
production decreased
3.
7% in August compared to
August last year.
Wetter, and cooler than
average conditions as well as
lower herd numbers, farm
sales and labour shortages
are impacting total
Australian milk production.
Australia milk production for
the 12 months to August was
0.2% lower than last year.
Fonterra collect
ions in
Australia are reported for
September, see page 5
f
or details.
EU milk production²
increased 1.2% in August
compared to the same
period last year.
Higher production volumes
were driven by Italy,
Ireland and France, and
partially offset by lower
volumes in Germany and
the Netherlands.
EU milk production for the
12 months to August was
up 0.3% compared to the
same period last year, driven
by higher volumes across
several countries including
Ireland, Italy and Poland.
US milk production
w
as relatively flat, with
an increase of 0.2% in
September, compared to the
same period last year.
Production growth has
continued to slow in
September for the second
consecutive month. Lower
milk per cow yield and herd
size contractions are the
result of higher feed costs
and are impacting
production.
Milk production for the
12 months to September was
2.
1% 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 exports up,
Australia and US monthly
exports continue to grow.
EU monthly exports decline
Total New Zealand dairy
exports increased by 0.6%,
or 1,190 MT, in September
compared to the same
period last year.
SMP export volumes to
China as well as fluid
milk products and MPC
increased year-on-year but
were partially offset by
lower shipments of WMP to
Sri Lanka.
Exports for the 12 months
to September were up by
4.5%, or 155,560 MT, on the
previous comparable period.
This was primarily driven by
WMP, fluid milk products
and cheese.
EU dairy exports
decreased 8.5%, or
48,256 MT, in August
compared to the same
period last year.
August exports reflected
lower sales of cheese,
cultured products, ice cream
and infant formula, down a
combined 49,840  MT.
Exports for the 12 months
to August were down
1.5%, or 105,939 MT, on the
previous comparable period.
Infant formula, cultured
products, butter and SMP
were the main drivers of
this decline but partially
offset by an increase in fluid
milk products.
US dairy exports
increased 12.9%, or
27,503 MT, in August
compared to the same
period last year.
Strong demand for SMP and
cheese in Mexico as well as
whey to China was observed
and driving this increase.
Exports for the 12 months
to August 2021 were up
8.7%, or 217,058 MT, on the
previous comparable period,
driven by whey, SMP, WPC
and butter, up a combined
199,109  MT.
Australia dairy exports
increased 17.3%, or 11,259  MT,
in August compared to the
same period last year.
Sustained high demand
for fluid milk products and
SMP in China is driving
this increase.
Exports for the 12 months
to August were up 12.0%, or
88,201 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 September 2021
compared to September 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
Change for the 12 months
to September 2021
Change for the 12 months
to August 2021
Change for the 12 months
to August 2021
Change for the 12 months
to August 2021
12.917.30.6
12.01.58.7
8.5
4.5
%
%

To view a chart that
illustrates year-on-year
changes in imports –
4
OUR MARKETS
Global Imports
China, Latin America and
Middle East and Africa
monthly imports decline.
Asia monthly imports
up
L
atin America dairy
import volumes¹ decreased
16.9%, or 31,888 MT, in July
compared to the same
period last year.
The decrease was driven by
lower demand for WMP to
Brazil and SMP in Mexico,
Honduras and Colombia,
down 31,929 MT.
I
mports for the 12 months to
July were up 20.
3%, or
3
80,880 MT, compared to
the same period last year.
Asia (excluding China)
dairy import volumes¹
increased 2.2%, or 9,308  MT,
in July compared to the same
period last year.
The increase was driven by
higher demand for whey to
Malaysia and Indonesia and
cultured products to the
Philippines, but offset by
lower demand for lactose
and infant formula.
Imports for the 12 months
to July were down 2.9%, or
143,970 MT, compared to the
same period last year driven
by large volumes of WMP
and SMP, and partially offset
by increases in fluid milk
products and cheese.
Middle East and Africa
dairy import volumes¹
decreased 15.2%, or
64,587 MT, in July compared
to the same period last year.
The decrease was driven
predominantly by lower
volumes of WMP to Algeria
and of WMP, SMP and infant
formula to Nigeria.
Imports for the 12 months
to July were up 11.5%, or
487,192 MT, compared to
July last year driven by
increases in cheese and
infant formula and offset by
decreases in WMP and fluid
milk products.
China dairy import
volumes decreased
by 1.9%, or 5,437 MT, in
September compared to
the same period last year
following months of year-on-
year growth.
Declines in infant formula,
fluid milk products and SMP
volumes were observed in
September but largely offset
by record levels of WMP,
sourced primarily from
New Zealand.
Imports for the 12 months to
September were up 24.6%,
or 825,930 MT, driven by
fluid milk products, WMP,
whey and SMP and partially
offset by decreases in
infant formula.
LATIN AMERICAASIAMIDDLE EAST & AFRICACHINA
1 Estimates are included for those countries that have not reported data.
%
%
%%
%
Change for July 2021
compared to July 2020
Change for September 2021
compared to September 2020
Change for July 2021
compared to July 2020
Change for July 2021
compared to July 2020
Change for the 12 months
to July 2021
Change for the 12 months
to July 2021
Change for the 12 months
to July 2021
1.9
2.216.9
2.911.5
%
Change for the 12 months
to September 2021
24.6
15.2
20.3
%
%

T
o view a table that shows our
detailed milk collections in New
Zealand and Australia compared
to the previous season –
%
%%
Season-to-date
1 July to 30 September
Season-to-date
1 June to 30 September
Season-to-date
1 June to 30 September
Season-to-date
1 June to 30 September
Change for September 2021
compared to September 2020
Change for September 2021
compared to September 2020
Change for September 2021
compared to September 2020
Change for September 2021
compared to September 2020
4.34.03.73.8
3.66.61.93.4
VOLUME M LITRESDAY
JUNJULAUGSEPOCTNOVDECJANFEBMARAPRMAY










5
OUR MARKETS
Fonterra Milk Collections
NEW ZEALANDNORTH ISLANDSOUTH ISLANDAUSTRALIA
New Zealand Milk Collection
Fonterra's Australia
collections for September
were 10.4 million kgMS, a
4.3% decrease on September
last season.
Fonterra collections across
Australia for the three
months to 30 September
reached 22.7 million kgMS, a
3.6% decline on last season.
Fonterra’s total intake for
September 2021 was down
on last season due to the
conscious decision to reduce
third-party intake.
North Island milk
collections in September
were 109.3  million kgMS,
3.7% lower than September
last season.
Season-to-date collections
were 211 million kgMS, 1.9%
behind last season.
September began with cool
but settled weather across
much of the North Island.
A cold front in the middle
of the month brought
repeated bouts of rain and
unseasonably low sunshine
hours, slowing pasture
growth and reducing milk
collection volumes.
South Island m
ilk
collections in September
were 63.7 million kgMS,
4.0% lower than September
l
ast season.
Season-to-date collections
were
92.8 million kgMS,
6.6% behind last season.
Weather varied between
high- and low-pressure
fronts during September.
The west coast received
repeated bouts of wet and
windy weather, with many
areas in Canterbury and
Otago recording gusts over
130 kilometres per hour.
Fonterra's New Zealand
collections for September
were 173 million kgMS, 3.8%
down on last September.
Season-to-date collections
were 303.9 million kgMS,
3.4% behind last season.
The country experienced
generally unsettled weather
throughout September.
While that is broadly typical
of spring, colder and wetter
than average conditions
for most of the country
impacted milk collections for
the month.
%%%
%
%

%
%
%%
%
To view more information,
including a snapshot of the
rolling year-to-date results –
%
6
GDT PRICE INDEXNZDUSD SPOT RATE
OCT  MAY
OCT
DEC
MAR
MAY
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 NZD appreciated during
October against a backdrop of
improving sentiment in global
markets and broad-based USD
weakness; the NZD was further
supported by the first increase
to the Official Cash Rate in
seven years and expectations
for further interest rate rises in
the coming months.
Fonterra GDT results at
last trading event
19 October 2021:
The next trading event will be held on 2 November 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)
4,091
USD
Fonterra product quantity
sold on GDT
000’ MT
27.2
NORTH ASIA (INCLUDING CHINA)
SOUTH EAST ASIA
MIDDLE EAST AND AFRICA
LATIN AMERICA
OTHER
USD 3,803/MT
1.4
WMP
USD 5,111/MT
4.8
BUTTER
USD 6,151/MT
2.8
AMF
USD 4,426/MT
3.0
CHEDDAR
USD 3,398/MT
2.4
SMP
27,174
MT
LATEST AUCTION
148,126
MT
FINANCIAL
YEAR‑TO‑DATE

7
Fonterra's foodservice
business hits $3 billion
in annualised revenue
Fonterra’s Foodservice
business, Anchor Food
Professionals (AFP), has
reached a milestone to
become a NZ$3 billion
annual revenue business.
CEO Miles Hurrell says
the success is down to the
Co-op’s strong connection
to customers who value
our sustainably produced,
high-quality, nutritious milk
and innovative products.
“It’s really pleasing to see this
milestone be reached despite
the impact of COVID-19
on restaurants and other
out-of-home eating. Our
people have worked hard to
find new ways of working
with customers and new
product applications to suit
the pandemic environment,
and we can see this has been
a success.
“Foodservice is a high value
channel for our farmers’
milk and a key part of our
long-term strategy. This
is why we’re aiming to
increase our milk solids
into Foodservice by
approximately 50% by 2030
and grow our presence
across further markets
including Greater China,
South East Asia and the USA.
“To support our Co-op’s
growth to 2030, we intend
to invest about $1 billion
in moving milk into
higher-value products and
increase our R&D budget
by 50%. These investments
will enable further
product innovation in the
Foodservice channel, among
other things, and help put
us on track to meet our
next Foodservice target of
becoming a $5 billion annual
revenue business,” says
Mr Hurrell.
Fonterra’s Director Global
Foodservice Paul Harvey says
Anchor Food Professionals
chefs work alongside
customers in their kitchens
to match their needs
with our Co-op’s dairy
innovation expertise.
“To offer solutions we need
to know what the problem
is, and in many cases the
issues are in the kitchen, and
that’s where we are spending
much more time with
our customers who want
our help.
“We now have 55 chefs
around the world who
go into kitchens like this
where they also help their
customers design new
innovative products to
address their problems,”
Mr Harvey says.
All new products require
an intimate understanding
of the science behind the
application in order to deliver
the right functionality and
performance for customers’
requirements. Fonterra’s
Research and Development
Centre (FRDC) in Palmerston
North plays a pivotal role
in bringing these products
to life.
“Our FRDC team works
closely with our chefs in our
application centres and with
our in-country sales and
marketing people around
the world, where they refine
some of these innovations
for a customer’s specific
need – often in response to
new food trends.
“A good example of this is
in China where over the
past 12 months the team
has introduced more than
100 new applications for
the beverage and dining
channel and demonstrated
170 new applications for our
bakery customers.
“We believe innovation and
new products are key to
future growth and will help
us build relationships with
up to 40,000 new customers
over the next five years, and
up to 70,000 new customers
in the next 10 years,”
Mr Harvey says.
In Greater China, Fonterra
will continue to build on its
success in the foodservice
channel by expanding deeper
into the larger cities. In
South East Asia, it’s applying
what it’s learnt from its
Greater China business to
customers in the region.
“In South East Asia, dairy is
seen as a premium food and
it also has a strong link to the
growth in the consumption
of Western foods.
“We are making the most of
this growing demand in the
region and in particular, we’re
doubling down on Indonesia
and Malaysia where the
evolution of bakeries will see
us expanding our reach into
more cities.
“We are also developing new
products that work well in
recipes chefs can use in the
growing number of online
bakery stores.
“In other markets like the
USA, where tariff barriers
make it more difficult to
maximise value from our
foodservice channel, we
partner with our IP, like we
have with one of America’s
dairy co-operatives, Land
O’Lakes,” Mr Harvey says.
Fonterra’s Foodservice
business started forming
in 2013 with the Anchor
Food Professionals brand
introduced in 2014.
To view more –
Our Performance

Women taking the
wheel
Diversity is a very important
part of Fonterra and the
Co-op is always on the
look-out for more women
to get behind the wheel.
Fonterra already has 66
female tanker operators
in New Zealand, two in
Australia and 32 women
employees in National
Transport and Logistics,
but there’s always room
to improve.
“We recognise the benefits of
having a diverse workforce.
It’s what our people deserve
– diverse thinking, diverse
ways of working, more
opportunities for creativity
and an environment that
is inclusive of everyone.
Diversity for National
Transport means we’re
well rounded, have higher
prospects for innovation and
a greater diversity of skills,”
says Kate Shirley, Fonterra
HR Business Partner COO.
Debbie Harding
Red Team Manager,
Pahiatua and Longburn
Debbie started as a Tanker
Operator in 1996 before
Kiwi Co-operative Dairy was
amalgamated into Fonterra.
“I drove tankers until 2018
and then became a Lead
Driver, with this job I ran the
shift. Then in 2020, I became
a Team Manager and now I
look after 55 guys and one
female.”
“As far as I know I was the
first female tanker driver
to become permanent, the
first woman permanent
Lead Driver and now the
first permanent Team
Manager in all Transport and
New Zealand-wide.”
“I’d just like to say that I am
very proud of myself at what
I have achieved. I would like
to thank all the guys I have
worked with, who accepted
me as a female working in
a male-dominated world. I
have enjoyed every minute
and still do. I know my boss
is very proud of me, he
encourages me all the time,”
says Debbie.
Paula Crawshaw
Tanker Operator,
Clandeboye
Paula is a Tanker Operator
at Fonterra’s Clandeboye
site. “My husband has been
a tanker driver with Fonterra
for 17 years, so, I always had
an interest in tanker driving,”
says Paula. “I got my class 4
license in 2016 and started a
job in 2020 driving a tanker
(minus trailer) for a cheese
company... a step up to
Fonterra was my next goal.”
Being in a male-dominated
space is nothing new to
Paula, “I spent seven years
as a volunteer firefighter
and I ride motorbikes. I'm
really happy to see Fonterra
making a real effort to
employ more female drivers,
every workplace benefits
from gender diversity”.
Hillary Moffat
Tanker Operator,
Reporoa
Hillary was inspired by
her late father to become
a Tanker Operator and
absolutely loves it.
“My heart and passion
are behind the wheel of a
truck and I know Fonterra
are a great company to
work for,” she says. “Having
that passion and also the
dedication to carry on the
legacy of my father is what
makes me love coming
to work.”
Hillary says her team here
at Fonterra have always
been 100% supportive of
her. “I can’t say I've ever
felt out of place, I've always
felt welcome.
“Fonterra have the Kiwi
attitude when it comes
to its people and their
families. They make you
feel welcome and part of an
extended family.”
For any women wanting
to go for a job as a Tanker
Operator, Hillary’s advice is
“Go for it! There is nothing
stopping you. The training
is amazing and you’re
not alone, there's always
someone to help if you get
stuck, it's awesome.”
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 August; New Zealand and US to September.
NOTE: Data for EU, US and Australia to August; New Zealand to September.
NOTE: Data for Asia, Middle East & Africa and Latin America to July; China to September.
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)
SEPTEMBER
2021
SEPTEMBER

2020
MONTHLY
CHANGE
SEASON-
TO-DATE
2021/22
SEASON-
TO-DATE
2020/21
SEASON-
TO-DATE
CHANGE
Total Fonterra
New Zealand
173.0179.9(3.8%)303.9314.5(3.5%)
North Island109.3113.5(3.7%)211.0215.1(1.9%)
South Island63.766.4(4.0%)92.899.4(6.6%)
Australia10.410.9(4.3%)22.723.2(3.6%)
Fonterra GDT results
This table provides more
information on the latest
results, including a snapshot
of the year-to-date results.
LAST TRADING EVENT
(19 OCTOBER 2021)
YEAR-TO-DATE

(FROM 1 AUGUST 2021)
Quantity Sold on GDT
(Winning MT)
27,174148,126
Change in Quantity Sold on GDT
over same period last year
(19.9%)(25.4%)
Weighted Average Product Price
(USD/MT)
4,0913,979
Change in Weighted Average
Product Price over same period
last year
28.7%28.9%
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.