Global Dairy Update July 2022

• Chief Innovation and Brand Officer Komal Mistry‑Mehta
shares how we're advancing our Active Living business.
1
Global Dairy
UPDATE
• New Zealand starts new season. US
production declines ease. Production declines
across Australia and EU.
• New Zealand and EU monthly exports decline.
Australia exports continue strong growth and
US monthly exports up.
• China monthly imports down. Middle East &
Africa, Latin America and Asia imports up.
• Fonterra New Zealand milk collections for
the first month of the 2022/23 season were
14.9 million kgMS, less than 1% of the full
season forecast.
• Fonterra Australia collections reached
105.5 million kgMS for the full 2021/22 season
to 30 June 2022, a 0.3% decrease compared
with last season.
• Fonterra welcomes Milk‑E, New Zealand’s first electric
milk tanker.
Key Dates
31 July 2022
End of FY22 Financial Year
22 September 2022
FY22 Annual Results
Announcement
10 November 2022
Fonterra Co‑operative Group
Annual Meeting
14 November 2022
Fonterra Shareholders' Fund
Annual Meeting
J U LY 2 0 2 2

%
%
%%
%
%
%%
Change for June 2022
compared to June 2021
Change for June 2022
compared to June 2021
Change for May 2022
compared to May 2021
Change for April 2022
compared to April 2021
Change for the 12 months
to June 2022
Change for the 12 months
to June 2022
Change for the 12 months
to May 2022
Change for the 12 months
to April 2022
0.28.80.0
3.30.00.2
0.8
4.3
2
OUR MARKETS
Global Production
New Zealand starts new
season. US production
declines ease. Production
declines across Australia
and EU
New Zealand milk
production¹ was flat on a
litres basis, (up 1.1% on milk
solids basis) in June compared
to the same period the
year prior.
June production is typically very
low and represents about 1% of
the total season's production.
New Zealand milk production
for the 12 months to June was
down 4.3% on the year prior.
Fonterra New Zealand
collections are reported for
June, see page 5 for details.
Australia milk production
decreased 8.8% in May
compared to the same period
the year prior.
Below average autumn
rainfall, combined with labour
constraints, and increasing
input prices continue to impact
milk production.
Australia milk production for
the 12 months to May was 3.3%
lower than the year prior.
Both Dairy Australia and
Rabobank have revised their
FY22 forecasts down to
around ‑3 .5% relative to the
prior period.
Fonterra collections in Australia
are reported for June, see
page 5 for details.
EU milk production² was
down 0.8% in April compared
to the same period the year
prior as rising input costs and
environmental protection plans
impacted production across
key producing regions.
Production declines were
observed in Germany,
Netherlands, Ireland and
France and largely offset by
increases in Italy and Poland.
EU milk production for the
12 months to April was flat
compared to the same period
the year prior. Increases in Italy,
Ireland, Poland and Hungary
were offset by declines
in Germany, Netherlands
and France.
US milk production
increased by 0.2% in June,
compared to the same period
the year prior.
The year‑on‑year increase
reversed a seven‑month trend
of consecutive declines and
was driven by higher milk
yield per cow as well as rising
herd sizes.
Milk production for the
12 months to June was down
0.2% 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 and and EU
monthly exports decline.
Australia exports continue
strong growth. US monthly
exports up
Total New Zealand
dairy exports were down
15.0%, or 47,246 MT, in
June compared to the same
period the year prior.
The decrease was driven by
lower shipments to China
of WMP and cheese as
covid lockdowns restrictions
continue to impact demand.
WMP to United Arab
Emirates and Sri Lanka also
declined year on year.
Exports for the 12 months to
June were down by 7.1%, or
253,646 MT, on the previous
comparable period. This was
primarily driven by decreases
in WMP, cheese and butter.
EU dairy exports
decreased 15.5%, or
100,493 MT, in April
compared to the same
period the year prior and
reflect low milk production
this season.
Lower exports volumes were
driven by decreases in fluid
milk products, SMP and
whey, and partially offset by
increases in cultured product
and infant formula.
Exports for the 12 months
to April were down 5.5%,
or 400,353 MT, on the
previous comparable period,
driven by declines in fluid
milk products, SMP, WMP,
infant formula, and partially
offset by increases in MPC
and caseinate.
US dairy exports
increased 6.3% in May
compared to the same period
the year prior.
Stronger demand for cheese
by Mexico, South Korea and
Japan, lactose to New Zealand
and Japan and WPC to China
is driving this increase. This
is partially offset by lower
shipments of SMP to Mexico
and whey to China.
Exports for the 12 months
to May were up 4.6%, or
122,323 MT, on the previous
comparable period, driven
by cheese, lactose, fluid milk
products, butter and AMF.
Australia dairy exports
increased 31.6%, or
19,236 MT, in May compared
to the same period the
year prior.
May exports continue to
increase year on year. driven
by high demand of fluid milk
products and SMP from
China. Increases in cheese
and other powders were
also observed.
Exports for the 12 months
to May were up 19.6 %, or
155,941 MT, on the previous
comparable period.
This was predominantly
driven by increases in fluid
milk products, as well as SMP
and WMP.
NEW ZEALANDAUSTRALIAEUROPEAN UNIONUSA
%%%
%
%
%
Change for June 2022
compared to June 2021
Change for May 2022
compared to May 2021
Change for May 2022
compared to May 2021
Change for April 2022
compared to April 2021
Change for the 12 months
to June 2022
Change for the 12 months
to May 2022
Change for the 12 months
to May 2022
Change for the 12 months
to April 2022
6.331.6
15.0
19.6
15.5
4.65.57.1
%
%

To view a chart that
illustrates year‑on‑year
changes in imports –
4
OUR MARKETS
Global Imports
China monthly imports
down. Middle East & Africa,
Latin America and Asia
imports up
Latin America dairy
import volumes
¹ increased
6.0%, or 10,086 MT, in April
compared to the same
period the year prior.
The increase was driven by
stronger demand for fluid
milk by Cuba and Mexico,
higher volumes of cheese by
the Dominican Republic but
partially offset by decreases
of SMP and WMP to Peru.
Imports for the 12 months
to April were up 0.9%
compared to the same
period the year prior, driven
by higher volumes of cheese,
whey and MPC, and SMP
and partially offset by
declines in WMP and fluid
milk products.
Asia (excluding China)
dairy import volumes
¹
increased 2.7%, or 11,912  MT,
in April compared to the
same period the year prior.
The increase was driven by
higher demand for SMP by
Pakistan and Philippines,
higher volumes of cultured
products to Philippines and
WPC to Singapore.
Imports for the 12 months
to April were up 4.1%, or
200,831 MT, compared to the
same period the year prior,
driven by higher volumes of
whey, WPC and SMP, and
partially offset by a decrease
in lactose, fluid milk products
and AMF.
Middle East and Africa
dairy import volumes
¹
increased 9.5%, or 41,994  MT,
in April compared to the
same period the year prior.
The increase was driven
by higher volumes of
SMP to Egypt cheese to
Libya and infant formula
to Iraq but partially offset
by lower volumes of fluid
milk products to Togo,
Saudi Arabia and Iraq.
Imports for the 12 months
to April were up 8.8%, or
422,189 MT, compared to
April the year prior, driven by
increases in cheese, SMP and
fluid milk products.
China dairy import
volumes
decreased by
22.2%, or 73,010 MT, in
June compared to the same
period last year. This is the
fourth consecutive month of
year‑on‑year decline as Covid
restrictions continue to impact
consumption and demand.
Lower volumes were
observed across most
product categories and more
specifically in WMP, fluid milk
products, SMP and cheese
mainly from New Zealand.
Imports for the 12 months
to June were down 8.6%,
or 351,465 MT, driven by
whey, fluid milk products,
infant formula and SMP and
partially offset by increases
in WMP.
LATIN AMERICAASIAMIDDLE EAST & AFRICACHINA
1 Estimates are included for those countries that have not reported data.
%
%
%%
%
Change for April 2022
compared to April 2021
Change for June 2022
compared to June 2021
Change for April 2022
compared to April 2021
Change for April 2022
compared to April 2021
Change for the 12 months
to April 2022
Change for the 12 months
to April 2022
Change for the 12 months
to April 2022
22.22.76.0
4.18.8
%
Change for the 12 months
to June 2022
8.6
9.5
0.9
%
%

To view a table that shows
detailed milk collections in New
Zealand and Australia compared
to the previous season –
%
%%
For the 2021/22 Season
compared to the previous season
Season-to-date
1 June to 30 June
Season-to-date
1 June to 30 June
Season-to-date
1 June to 30 June
Change for June 2022
compared to June 2021
Change for June 2022
compared to June 2021
Change for June 2022
compared to June 2021
Change for June 2022
compared to June 2021
10.130.04.31.9
0.330.04.31.9
VOLUME M LITRESDAY
JUNJULAUGSEPOCTNOVDECJANFEBMARAPRMAY










5
OUR MARKETS
Fonterra Milk Collections
NEW ZEALANDNORTH ISLANDSOUTH ISLANDAUSTRALIA
New Zealand Milk Collections
Fonterra's Australia
collections for June were
6.5 million kgMS, a 10.1%
increase on June last season.
Third‑party volumes
increased 0.35 million
kgMS and farm collections
increased 0.25 million
kgMS, respectively.
Fonterra collections across
Australia for the full season
were 105.5 million kgMS, a
0.3% decline on last season
North Island milk
collections in June were
11. 5 million kgMS, 4.3%
behind June last season.
Warm and wet conditions
earlier in the month helped
pasture cover recover
from the tough Autumn
experienced by most
farmers. The middle of June
was interrupted with cold
weather; however, conditions
have set up farms well
for calving.
South Island milk
collections in June were
3.4 million kgMS, 30.0%
higher than last June.
Although a large variance
in percentage terms,
June collections in the
South Island typically
represent less than 0.5% of
full season collections.
Central and Lower
South Island regions had
favourable conditions to
support milk production
with warmer and drier than
normal conditions for this
time of the season.
Fonterra's New Zealand
collections for June were
14.9 million kgMS, 1.9%
higher than last June.
As is normal for this time of
the season, collections for
June represent less than 1%
of the full season forecast.
Warm and wet conditions
were experienced
throughout June. Farms
are looking well set up
for calving with good
pasture covers and animal
body condition.
%%%
%
%

%
%%%
%
To view more information,
including a snapshot of the
rolling year‑to‑date results –
%
6
GDT PRICE INDEXNZDUSD SPOT RATE
JUL FEB JUL OCT DEC FEB MAY JUL OCT DEC MAY 


,
,
,

,
,
.
.
.

.
.
.

.

PRICE INDEX
NZD  USD
OUR MARKETS
Fonterra Global Dairy Trade Results
Fonterra GDT sales
by destination:
Dairy commodity
prices and New
Zealand dollar trend
US inflation is at its highest level
in four decades, leading to a faster
pace of tightening in US monetary
conditions. This underpinned
demand for US dollars and,
together with a weaker economic
outlook in New Zealand,
pressured the NZD to below 61
US cents before increasing above
62 cents later in July.
Fonterra GDT results at
last trading event
19 July 2022:
The next trading event will be held on 2 August 2022. Visit www.globaldairytrade.info for more information.
Change in Fonterra’s
weighted average product
price from previous event
4.9
Fonterra’s weighted
average product price

(USD/MT)
4,190
USD
Fonterra product quantity
sold on GDT
000’ MT
22.2
NORTH ASIA (INCLUDING CHINA)
SOUTH EAST ASIA
MIDDLE EAST AND AFRICA
LATIN AMERICA
OTHER
USD 3,734/MT
8.9
SMP
USD 4,825/MT
1.7
CHEDDAR
USD 5,580/MT
2.2
AMF
USD 5,530/MT
2.1
BUTTER
USD 3,757/MT
5.1
WMP
22,193
MT
LATEST AUCTION
598,577
MT
FINANCIAL
YEAR‑TO‑DATE

7
Our Performance
Chief Innovation and
Brand Officer Komal
Mistry‑Mehta shares
how we're advancing
our Active Living
business
The way people manage their
health and wellness is being
revolutionised, and we’re
seeing this trend growing more
prominently due to COVID‑19.
Consumers are rethinking what
it means to age well, are being
proactive with their health and
taking a holistic perspective on
their wellbeing. This has given
rise to a range of consumer
solutions targeting specific
health and wellness needs,
which Fonterra is well placed to
take advantage of.
Last year when the
Co‑operative released its
long‑term strategy, it set an
aspiration to grow operating
profit by 40‑50% from
FY21 base by 2030. This
will be done by focusing
on our New Zealand milk,
sustainability, nutrition and
innovation credentials.
One of the ways we will
create more value is to shift
more of our Ingredients
portfolio towards higher‑
value ingredients and solutions
through our Active Living
business. This business
addresses three dimensions
of wellbeing (Physical, Mental,
Inner) and the health needs of
a medical patient right through
to those taking a proactive
approach to their health
and wellbeing.
The global health and
wellness market represents
approximately US$66 billion
in annual sales, growing at
6.1% per year and Medical
Nutrition represents around
US$50 billion in annual sales
globally and growing at
5% per year.
Fonterra is already well
positioned to take a slice
of these markets. We have
expertise in protein to help
people maintain muscle mass
for better quality of life, dairy
lipids that improve people’s
mood and probiotics to support
immunity and digestion.
To date we’re able to claim
our products have health
benefits relating to muscle
health and sarcopenia (age
related loss of muscle mass),
mobility, malnutrition, and
digestive health. In addition
to this we’re beginning to see
benefits emerging in the areas
of oncology care, perioperative
care, mental wellbeing and
beauty from within. We’re also
seeing complementary benefits
of immunity, metabolic health,
and weight management
coming through.
In terms of the geographies
we’re pursuing, the USA is
key to our strategy due to its
interest in health and wellness
and its wealth of innovative
companies at the forefront of
this trend. We are also focusing
on Japan, China and South
Korea with the team scoping
Indonesia, Thailand and
Vietnam for future potential.
We already have a number of
partnerships underway with
customers who value our
expertise, including:
An R&D partnership focusing
on mental wellbeing with US
based personalised nutrition
company Sun Genomics.
The fastest growing probiotic
brand in China, Wonderlab,
who is focused on providing
nutrition solutions to
younger generations.
Korean brand Daesang a
customer that values our
specialist ingredients and
our sustainability credentials.
They’ve recently launched
a new product using our
bioactive whey – which has
lactoferrin content 11 times
higher than standard whey
protein, to support immunity
and provide protein benefits.
Leading health solutions
company, Life Extension who
offer a range of vitamins,
nutritional supplement and
blood‑testing services. They
launched a new probiotic
supplement in the US market in
2021, using our BifidoB HN019
probiotic strain
Our Active Living business has
grown steadily over the last few
years. This growth has been
driven by innovation, increase
in market share and share of
wallet, portfolio expansion and
geographic expansion.
Going forward we will continue
to invest in R&D, customer
experience and our service
model, as well as look for
opportunities to enhance
our capability and strategy
through partnerships.
In particular, we will be focusing
on three areas to achieve our
2030 ambitions:
Medical & Lifestyle protein-
based beverages – lifestyle
beverages represent around
US$9.2 billion in annual sales,
growing at 6.4% per year.
We have well established
internal capability in this
space, differentiated solutions
through our advanced
proteins, and an existing global
customer network.
Probiotics in Asia – the Asian
probiotics market represents
approximately US$1.54 billion
in annual sales and is growing
at 11. 6% per year. Two of our
probiotics ‘super‑strains’ are
currently highly regarded in
market because of the depth
of human clinical research
backing their effectiveness.
Mental wellbeing solutions
– mental wellbeing is the top
and fastest growing consumer
concern globally. We know our
lipids, probiotics and proteins
have a role to play in improving
mental wellness.
It is an exciting time for the
food industry as investment in
health, data and technology are
rising and we are excited to be
part of this journey to provide
better nutritional solutions
to customers and consumers
around the world.
Komal Mistry‑Mehta,
Chief Innovation and
Brand Officer

Our Co-op
8
Fonterra welcomes
Milk‑E, New Zealand's
first electric milk tanker
New Zealand’s first electric
milk tanker, Milk‑E, has
been officially launched
by the Minister for Energy
and Resources, Hon. Dr
Megan Woods, in Morrinsville.
Local Government, Iwi,
Industry and Fonterra
employees were also
present to recognise the
significant milestone in
the decarbonisation of
New Zealand’s heavy transport,
while also recognising the team
behind the build.
Named by Fonterra farmer
Stephen Todd from Murchison,
Milk‑E is part of Fonterra’s
fleet decarbonisation work,
which is one of a number of
programmes that’s helping the
Co‑op towards becoming a
leader in sustainability.
“Right across the Co‑op our
teams are constantly looking
at how we can decrease our
emissions – from on farm, to
at our sites and throughout
our transport network,” said
Chief Operating Officer, Fraser
Whineray.
“The team here at our
Morrinsville Workshop have
done a fantastic job of pulling
this tanker together. Being a
New Zealand first, there’s been
a lot of creative thinking and
Kiwi ingenuity to bring Milk‑E
to life.”
Changes to the battery
configuration have given the
team an opportunity to trial
other additions to improve milk
collection efficiencies, reduce
safety concerns, and reduce
the amount of work required
to customise a Fonterra tanker.
A battery swap system is being
installed at the Waitoa site
where Milk‑E will be based to
trial how this could work within
a fleet to minimise downtime
from battery charging.
“It’s been great to see the
team turn challenges into
opportunities so in addition
to trialling Milk‑E’s on‑road
ability, we’re also trialling
a new electric pump, hose
configuration and cabinetry,”
says Mr Whineray.
Fonterra received co‑funding
from the Government’s Low
Emissions Transport Fund
(LEFT), which is administered
by EECA (the Energy Efficiency
and Conservation Authority).
EECA Group Manager
Investment and Engagement,
Nicki Sutherland, said, “We’re
pleased to see this project
come to life. New Zealand has
ambitious targets to rapidly
reduce carbon emissions, and
transport is key, but heavy
freight has proven hard to
decarbonise. If successful,
this project could be
replicated across a number of
New Zealand businesses.”
The electric milk tanker will
operate out of Fonterra’s
Waitoa site, which Mr Whineray
says is very fitting given it
was the site of New Zealand’s
largest fleet of electric milk
trucks 100 years ago.
Other work on Milk‑E includes:
• An electric pump on the
driver’s side has reduced the
pipework on the truck by 3.4
metres, reducing tare weight.
• The milk hose now falls
naturally back across the
guards of the truck and is
secured onto a Bayonet
connection which locks the
hose in place and seals the
end of the hose in transit.
• Newly designed doors that
open out sideways with
minimal moving parts,
resulting in improved safety.
• The need for a hydraulic tank
and pump has been removed
and a fully electric motor and
pump has been installed.
For more information, check
out 10 facts about Milk‑E –

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 April; Australia to May; New Zealand and US to June.
NOTE: Data for EU to April; US and Australia to May; New Zealand to June.
NOTE: Data for Asia, Middle East & Africa and Latin America to April; China to June.
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)
JUNE
2022
JUNE

2021
MONTHLY
CHANGE
SEASON-
TO-DATE
2022/23
SEASON-
TO-DATE
2021/22
SEASON-
TO-DATE
CHANGE
Total Fonterra
New Zealand
14.914.61.9%14.914.61.9%
North Island11. 512.0(4.3%)11. 512.0(4.3%)
South Island3.42.630.0%3.42.630.0%
MILK COLLECTION
(MILLION KGMS)
JUNE
2022
JUNE

2021
MONTHLY
CHANGE
SEASON-
TO-DATE
2021/22
SEASON-
TO-DATE
2020/21
SEASON-
TO-DATE
CHANGE
Australia6.55.910.1%105.5105.8(0.3%)
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 JULY 2022)
YEAR-TO-DATE

(FROM 1 AUGUST 2021)
Quantity Sold on GDT
(Winning MT)
22,193598,577
Change in Quantity Sold on GDT
over same period last year
2.8%(10.3%)
Weighted Average Product Price
(USD/MT)
4,1904,412
Change in Weighted Average
Product Price over same period
last year
7.6%23.8%
Change in Weighted Average
Product Price from previous event
(4.2%)–
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.
Cultured Products
Fermented milks that are
prepared by using starter
cultures and controlled
fermentation including
yoghurt, yoghurt drinks, sour
cream, crème fraiche.
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 New Zealand
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.
WPI
Whey Protein Isolate.