Global Dairy Update March 2022

• NZMP’s Organic Butter - Carbonzero™ Certified wins second
innovation award.
• On 17 March, Fonterra announced its 2022 Interim Results.
For further details,
view our website –
1
Global Dairy
UPDATE
• Monthly production declines continue across
all regions.
• New Zealand monthly exports flat, Australia
exports increase. US and EU monthly
exports decline.
• China, Middle East and Africa, Latin America
and Asia monthly imports increase.
• Fonterra New Zealand milk collection for
February was 126.9 million kgMS, down 7.0%
on February the prior season.
• Fonterra Australia milk collection for February
was 7.6 million kgMS, up 4.9% on February
last season.
• Fonterra set to be home to New Zealand’s first electric
milk tanker.
Key Dates
May 2022
FY22 Q3 Business Update
1 June 2022
Start of the 2022/23 Season
31 July 2022
End of FY22 Financial Year
MARCH 2022

%
%
%%
%
%
%%
Change for February 2022
compared to February 2021
Change for February 2022
compared to February 2021
Change for January 2022
compared to January 2021
Change for December 2021
compared to December 2020
Change for the 12 months to
February 2022
Change for the 12 months
to February 2022
Change for the 12 months
to January 2022
Change for the 12 months
to December 2021
1.06.38.2
1.70.21.0
1.5
1.7
2
OUR MARKETS
Global Production
Monthly production
declines continue across
all regions
New Zealand milk
production¹ decreased
8.2% on a litres basis, (down
7.2% on milk solids basis)
in February compared to
February the year prior.
Drought conditions early in
the month were replaced
by mixed weather with
above average rainfall.
This contributed towards
improved soil moisture and
milk production towards the
end of February.
New Zealand milk production
for the 12 months to February
was down 1.7% on the
year prior.
Fonterra New Zealand
collections are reported
for February, see page 5
for details.
Australia milk
production decreased
6.3% in January compared to
January the year prior.
Production was impacted by
summer rainfall deficits, and
COVID-related labour and
supply chain challenges.
Australia milk production for
the 12 months to January was
1.7% lower than the year prior.
Dairy Australia and Rabobank
have lowered their current
season forecasts, Rabobank
to -1.8% and Dairy Australia to
“unlikely to see growth”.
Fonterra collections in
Australia are reported
for February, see page 5
for details.
EU milk production²
decreased 1.5% in December
compared to the same
period the year prior.
Lower production volumes
year-on-year were driven
by Germany, Netherlands
and France but partially
offset by an increase in Italy
and Poland.
EU milk production for the
12 months to December
was down 0.2% compared
to the same period the year
prior, driven by declines
in Germany, Netherlands
and France and offset by
increases in Italy and Ireland.
US milk production
decreased by 1.0% in
February, compared to the
same period the year prior.
Smaller herd size remained a
key driver of the decline year-
on-year. However, compared
to prior month, herd sizes
grew for the first time in
eight months. Milk yield per
cow yield remained low as a
result of high feed costs.
Milk production for the
12 months to February was
1.0% higher compared to the
same period the year prior.
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 monthly
exports flat, Australia
exports increase.
US and EU monthly
exports decline
Total New Zealand
dairy exports were flat in
February compared to the
same period the year prior.
Stronger shipments of SMP
to South East Asia and Libya,
and butter and fluid milk
products to China, were
observed year-on-year, but
offset by lower shipments of
WMP to China.
Exports for the 12 months to
February were up by 2.1%,
or 72,964 MT, compared to
the same period the year
prior. This was primarily
driven by increases in fluid
milk product, WMP, and
cheese but partially offset
by declines in AMF and
infant formula.
EU dairy exports
decreased 6.0%, or
35,473 MT, in December
compared to the same
period the year prior.
Lower exports of cheese,
SMP and cultured products,
down a combined 27,747  MT,
were partially offset by
stronger demand for fluid
milk products and MPC.
Exports for the 12 months to
December were down 1.3%,
or 92,805 MT, compared to
the same period the year
prior, driven by declines in
infant formula, cultured
products, WMP, SMP and
partially offset by increases
in fluid milk products
and whey.
US dairy exports
decreased 2.9%, or 5,611  MT,
in January compared to
the same period the year
prior. This is the second
consecutive month of lower
exports following 10 months
of year-on-year gains.
Lower shipments of whey to
China and SMP to Mexico
were partially offset by
an increase in demand
for cheese to Mexico and
Australia, and lactose to
China and the Philippines.
Exports for the 12 months to
January 2022 were up 10.3%,
or 258,327 MT, compared
to the same period the year
prior, driven by SMP, cheese,
whey, lactose, and fluid milk
products, up a combined
238,541  MT.
Australia dairy
exports increased 73.3%,
or 40,148 MT, in January
compared to the same
period the year prior.
January exports were higher
than normal and driven by
high demand from China
for fluid milk products, and
limited supply available from
New Zealand, up 23,961 MT
year-on-year. Increases in
SMP and cheese exports
were also observed.
Exports for the 12 months to
January were up 22.2%, or
167,870 MT, compared to the
same period the year prior.
This was predominantly
driven by increases in fluid
milk products, and also SMP
and WMP.
NEW ZEALANDAUSTRALIAEUROPEAN UNIONUSA
%%%
%
%
%
Change for February 2022
compared to February 2021
Change for January 2022
compared to January 2021
Change for January 2022
compared to January 2021
Change for December 2021
compared to December 2020
Change for the 12 months
to February 2022
Change for the 12 months
to January 2022
Change for the 12 months
to January 2022
Change for the 12 months
to December 2021
2.973.30.0
22.2
6.0
10.31.32.1
%
%

To view a chart that
illustrates year-on-year
changes in imports –
4
OUR MARKETS
Global Imports
China, Middle East and
Africa, Latin America
and Asia monthly
imports increase
Latin America dairy
import volumes¹ increased
5.5%, or 9,848 MT, in
December compared to the
same period the year prior.
The increase was driven by
higher demand for cheese
and whey to Mexico and SMP
to Colombia, Honduras and
Dominican Republic.
Imports for the 12 months
to December were up
3.5% compared to the
same period the year prior,
driven by higher volumes
of cheese, whey, SMP and
infant formula.
Asia (excluding China)
dairy import volumes¹
increased 6.6%, or
25,808 MT, in December
compared to the same
period the year prior.
The increase was driven
by higher demand for
whey to Indonesia, SMP
to Philippines and WPC
to Japan.
Imports for the 12 months to
December were up 0.4%, or
21,255 MT, compared to the
same period the year prior,
driven by higher volumes of
whey, cheese and fluid milk
products and partially offset
by a decrease in WMP.
Middle East and Africa
dairy import volumes¹
increased 10.6%, or
42,460 MT, in December
compared to the same
period the year prior.
The increase was
predominantly driven by
higher volumes of fluid milk
products to Libya and Iraq,
cheese to Iraq and SMP to
Libya and Egypt. This was
partially offset by lower
demand for infant formula
from Nigeria.
Imports for the 12 months
to December were up 5.6%,
or 270,960 MT, compared
to December the year prior,
driven by increases in fluid
milk products, cheese and
cultured products.
China dairy import
volumes increased by 3.2%,
or 8,321 MT, in February
compared to February the
year prior.
Strong demand of WMP was
observed in February and
sourced from New Zealand,
South America and Europe.
AMF and butter imports
also increased year-on-year,
primarily from New Zealand.
This was largely offset by a
continuing weaker demand
for whey.
Imports for the 12 months to
February were up 12.3%, or
448,937 MT, driven by WMP,
fluid milk products and SMP,
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 December 2021
compared to December 2020
Change for February 2022
compared to February2021
Change for December 2021
compared to December 2020
Change for December 2021
compared to December 2020
Change for the 12 months
to December 2021
Change for the 12 months
to December 2021
Change for the 12 months
to December 2021
3.2
6.65.5
0.45.6
%
Change for the 12 months
to February 2022
12.3
10.6
3.5
%
%

To view a table that shows
detailed milk collections in New
Zealand and Australia compared
to the previous season –
%
%%
Season-to-date
1 July to 28 February
Season-to-date
1 June to 28 February
Season-to-date
1 June to 28 February
Season-to-date
1 June to 28 February
Change for February 2022
compared to February 2021
Change for February 2022
compared to February 2021
Change for February 2022
compared to February 2021
Change for February 2022
compared to February 2021
4.94.88.97.0
1.13.14.64.0
VOLUME M LITRESDAY
JUNJULAUGSEPOCTNOVDECJANFEBMARAPRMAY










5
OUR MARKETS
Fonterra Milk Collections
NEW ZEALANDNORTH ISLANDSOUTH ISLANDAUSTRALIA
New Zealand Milk Collection
Fonterra's Australia
collections for February
were 7.6 million kgMS, a 4.9%
increase on February last
season as both third party
volumes and farm collections
increased year-on-year.
The increased farm intake
was predominantly due to
new suppliers that have
joined Fonterra this season.
Fonterra collections across
Australia for the eight
months for the season to
date were 75.2 million kgMS,
a 1.1% decline on last season.
North Island milk
collections in February were
67.3 million kgMS, 8.9% lower
than February last season.
Season-to-date collections
were 697.3 million kgMS,
4.6% behind last season.
North Island milk collections
have been stronger in
general throughout the
back half of this month,
approaching last year’s
favourable milk volumes on a
day-to-day basis.
South Island milk
collections in February were
59.6 million kgMS, 4.8%
lower than last February.
Season-to-date collection
were 462.3 million kgMS,
3.1% behind last season.
The South Island had
steep declines in milk
collections throughout
February. Hot, dry weather
in the early period preceded
unseasonable colder, wetter
conditions, causing larger
decreases compared to
last February.
Fonterra's New
Zealand collections for
February were 126.9 million
kgMS, 7.0% lower than
last February.
Season-to-date collections
were 1,159.6 million kgMS,
4.0% behind last season.
Hot, dry weather continued
into the first week of
February across most of
the country before being
interrupted with drought-
breaking rain through
the middle of February.
Disruptive weather, including
a cyclone and flooding,
impacted feed availability in
many regions. Milk volumes
recovered following more
normal weather conditions
through the second half of
the month.
%%%
%
The inclusion of off-GDT sales contributed approximately
eight cents per kgMS to the Milk Price for the season
to 31 January 2022.
%

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


.

.
.
PRICE INDEX
NZD  USD
OUR MARKETS
Fonterra Global Dairy Trade Results
Fonterra GDT sales
by destination:
Dairy commodity
prices and New
Zealand dollar trend
While geopolitical tensions
lead to an increase in
volatility across financial
markets during March, the
NZD strengthened mainly
due to increasing interest
rates and higher commodity
prices – the currency rising
to 69 US cents.
Fonterra GDT results at
last trading event
15 March 2022:
The next trading event will be held on 5 April 2022. Visit www.globaldairytrade.info for more information.
Change in Fonterra’s
weighted average product
price from previous event
1.0
Fonterra’s weighted
average product price

(USD/MT)
5,101
USD
Fonterra product quantity
sold on GDT
000’ MT
21.9
NORTH ASIA (INCLUDING CHINA)
SOUTH EAST ASIA
MIDDLE EAST AND AFRICA
LATIN AMERICA
OTHER
USD 4,596/MT
3.4
WMP
USD 7,111/MT
0.9
AMF
USD 6,412/MT
0.3
CHEDDAR
USD 4,574/MT
0.6
SMP
USD 6,958/MT
1.8
BUTTER
21,886
MT
LATEST AUCTION
425,353
MT
FINANCIAL
YEAR‑TO‑DATE

7
NZMP’s Organic
Butter - Carbonzero™
Certified wins second
innovation award
Hot on the heels of
winning the ‘Sustainability
Innovation Award’ at Food
Ingredients Europe 2021,
NZMP’s Organic Butter -
Carbonzero™ Certified has
won the ‘Most Innovative
Dairy Product Award’ at
the Gulfood Innovation
Awards 2022.
Gulfood is the world’s largest
food and beverage sourcing
event. It takes place annually
and attracts exhibitors
and visitors from around
the globe.
This is the first time Fonterra
has won an award at the
Gulfood Innovation Awards,
and our entry was judged
by an industry-leading jury
panel against hundreds
of others from around
the world.
Our submission focused
on the work Fonterra is
doing across the value
chain when it comes to
reducing emissions. This
includes touching on
our new sustainability
commitment around net
zero, the work we’re doing
with farmers through the
Co-operative Difference, the
game changing innovation
underway to reduce
methane emissions on-farm
and the work we’ve done to
move out of coal.
With 72 per cent of global
consumers expressing an
interest in brands that
actively communicate
achievements around
sustainability, the
introduction of carbonzero
ingredients is another way
in which NZMP™ customers
can leverage Fonterra’s
sustainability solutions.
Kelvin Wickham, Chief
Executive AMENA, says
achieving carbonzero
certification for products like
Organic Butter is a great way
for us to help our customers
and the environment in
the short-term, while we
work towards our net
zero aspirations.
Our Performance

Our Co-op
8
Fonterra set to be home
to New Zealand’s first
electric milk tanker
More than 100 years ago,
Fonterra’s Waitoa site had
New Zealand’s largest fleet
of electric milk trucks.
Fast-forward to 2022, the
site is set to welcome
New Zealand’s first modern
electric milk tanker.
The E-tanker, which is due to
hit the road in early May, will
help Fonterra understand
what the future of electric
milk collection and rural
heavy transport looks like.
With road transport being
one the fastest growing
source of emissions,
the Co-op sees this as
an opportunity to help
the country identify and
deliver lower carbon
transport solutions.
Fonterra Chief Operating
Officer, Fraser Whineray,
says improving emissions
across the entire supply
chain is part of Fonterra’s
overall commitment
to sustainability.
“The global technology
investment in sustainable
land, air and sea transport
is phenomenal. Our teams
are constantly screening
the possibilities to see
what could work across our
supply chain”.
The E-tanker is part of
Fonterra’s Electric Vehicle
strategy that will see a third
of the Co-op’s light vehicle
fleet converted to EVs by
the end of 2023, while also
focusing on transitioning
medium and heavy vehicles.
Here’s a few facts about
the new E-tanker...
1. How big is it?
It’s about the same size as
a regular tanker. For those
who want more technical
details – it will operate at
46T GVM (gross vehicle
mass) with the trailer.
2. How far can it go?
It has a range of about
140km on a full charge (but
this is still to be tested).
3. What brand is it?
The cab and chassis are
from XCMG – a Chinese
construction machinery
group. The team will fit the
‘tank’ part of the tanker
to it, which will be the
same as with Fonterra’s
regular tankers.
4. Is this the first of
its kind?
With regards to a fully
electric milk tanker in
New Zealand, yes. As for
in the world, we can’t be
sure yet, we’re still checking
that out.
5. How much milk will
it carry?
The tank will be the same
size as on our regular
tanker with the capacity
to carry 28,000 litres.
However, because the
‘truck’ part of the tanker
is a bit heavier with the
battery it will carry around
2,300 litres less milk. This
is so we can operate within
our permitted weight.
6. How long does it take
to charge?
It will take about three
hours to charge, and we
will be operating it on a
battery swap system so we
won’t have to have it lying
idle while charging. The
team will be able to swap
the battery out in about
six minutes.
7. What will you be
looking at during
the trial?
We’ll be looking at a
number of factors including;
how far it can go, how
easy it is to charge, milk
collection, maintenance,
efficiency, cost, and driver
comfort and safety. This
is very much a trial and
we’re looking forward to
learning more about heavy
vehicle E-Transport in a
rural setting.
8. Where will it be based?
The new tanker will be
based at our Waitoa plant
in the Waikato region. This
is because Waitoa has lots
of close supplying farms
on relatively flat land, so
we can do shorter runs
where we can reduce
battery consumption with
less hills. Since Waitoa was
home to the biggest fleet of
electric milk trucks, it is also
fitting that in New Zealand
it becomes home to
the first modern milk
collection electric tanker in
New Zealand.
9. How long will it take
to build?
A normal tanker takes
about 27 days to build, but
this will take a bit longer.
This is due to some of
the new tech we need to
manage. We plan to have it
on the road in early May.

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 to December; Australia to January; New Zealand and US to February.
NOTE: Data for EU to November; US and Australia to January; New Zealand to February.
NOTE: Data for Asia, Middle East & Africa and Latin America to December; China to February.
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)
FEBRUARY
2022
FEBRUARY

2021
MONTHLY
CHANGE
SEASON-
TO-DATE
2021/22
SEASON-
TO-DATE
2020/21
SEASON-
TO-DATE
CHANGE
Total Fonterra
New Zealand
126.9136.5(7.0%)1,159.61,207.7(4.0%)
North Island67.373.9(8.9%)697.3730.7(4.6%)
South Island59.662.6(4.8%)462.3476.9(3.1%)
Australia7.67.34.9%75.276.0(1.1%)
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 MARCH 2022)
YEAR-TO-DATE

(FROM 1 AUGUST 2021)
Quantity Sold on GDT
(Winning MT)
21,886425,353
Change in Quantity Sold on GDT
over same period last year
(16.0%)(13.3%)
Weighted Average Product Price
(USD/MT)
5,1014,343
Change in Weighted Average
Product Price over same period
last year
23.5%29.2%
Change in Weighted Average
Product Price from previous event
(1.0%)–
Fonterra GDT results
This chart shows Fonterra
GDT prices and volumes over
the past 12 months.

11
AMF
Anhydrous Milk Fat.
BMP
Butter Milk Powder.
DIRA
Dairy Industry Restructuring
Act 2001 (New Zealand).
Farmgate Milk Price
The price for milk supplied in
New Zealand to Fonterra by
farmer shareholders.
Fluid 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.
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.