Global Dairy Update April 2023

• Methane joint venture "now open for business".
1
Global Dairy
UPDATE
• New Zealand, EU and US monthly production
increase, Australia production continues
to decline. New Zealand and Australia down
on a 12 month basis.
• Monthly exports decline across all regions.

• China, Latin America and Asia monthly
imports increase. Middle East & Africa
monthly imports decline.
• Fonterra New Zealand milk collections for
March were 137.8 million kgMS, 0.7% higher
than March in the prior season. Season-to-
date collections are 1.0% down on last season.
• Fonterra Australia milk collections for March
were 8.5 million kgMS, 6.9% up on March in
the prior season. Season-to-date collections
are 0.9% down on last season.
• Celebrating success – Awards round up.
Key Dates
25 May 2023
FY23 Q3 Business Update
1 June 2023
Start of the 2023/24 Season
31 July 2023
End of FY23 Financial Year
APRIL 2023

%
%
%%
%
%
%%
Change for March 2023
compared to March 2022
Change for March 2023
compared to March 2022
Change for February 2023
compared to February 2022
Change for February 2023
compared to February 2022
Change for the 12 months
to March 2023
Change for the 12 months
to March 2023
Change for the 12 months
to February 2023
Change for the 12 months
to February 2023
0.55.30.3
6.60.10.6
0.7
1.9
2
OUR MARKETS
Global Production
New Zealand, EU and
US monthly production
increase, Australia
production continues
to decline
New Zealand¹ milk
production was up 0.3%
on a litres basis, (up 1.0% on
milk solids basis) in March
compared to March the
year prior.
Favourable pasture growing
conditions have contributed
to increased production in
the North Island while South
Island collections are stabilising
following dry conditions.
New Zealand milk production
for the 12 months to March
was down 1.9% on the previous
comparable period.
Fonterra New Zealand
collections are reported for
March, see page 5 for details.
Australia milk production
decreased 5.3% in February
compared to February the
year prior.
While Autumn conditions look
more favourable, record rainfall
and flooding throughout
spring continues to impact
availability and quality of
pasture. Combined with
the increasing cost of feed,
Australian milk production
remains constrained.
Australia milk production for
the 12 months to February was
6.6% lower compared to the
previous comparable period.
Fonterra collections in Australia
are reported for March, see
page 5 for details.
EU milk production²
increased 0.7% in February
compared to February the
year prior.
The production increase was
driven primarily by Germany,
the Netherlands and Belgium,
and partially offset by declines
in France, Spain and Hungary.
EU milk production for the
12 months to February was
up 0.1% on the previous
comparable period.
Increases in Poland, the
Netherlands and Germany
were largely offset by declines
in Italy, Spain and France.
US milk production
increased by 0.5% in March
compared to March the
year prior.
Production continued to
increase year-on-year although
at a slower pace compared
to prior months. This was
driven by growing herd sizes.
However, on farm cost and
margin pressures could
lead to cow culling in the
coming months.
Milk production for the
12 months to March increased
0.6% on the previous
comparable period.
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
Monthly exports
decline across
all regions
Total New Zealand dairy
exports decreased 6.2%,
or 21,038 MT, in March
compared to March the
year prior.
The decrease was driven by
lower shipments of WMP
to China and Indonesia.
This was partially offset by
an increase in exports of
infant formula.
Exports for the 12 months
to March were down by
3.8%, or 131,035 MT, on the
previous comparable period.
This was primarily driven
by decreases in WMP and
MPC, and partially offset by
increases in SMP and AMF.
EU dairy exports
decreased 1.4%, or 6,911  MT,
in February compared to
February the year prior.
The decline in export
volumes continues to be
driven by lower fluid milk
products shipments to China
and cheese to China and
Ukraine, partially offset by
an increase in infant formula
to China and SMP exports to
Algeria and Yemen.
Exports for the 12 months
to February were down
9.4%, or 667,202 MT, on the
previous comparable period,
driven by declines in fluid
milk products, cheese and
WMP and partially offset by
increases in infant formula
and cultured products.
US dairy exports
decreased 1.4%, or 2,957  MT,
in February compared to
February the year prior.
It is the first year-on-year
decrease since April 2022.
Lower demand for WPC,
fluid milk products and
infant formula was partially
offset by an increase in
lactose exports to China and
New Zealand.
Exports for the 12 months to
February were up 5.6%, or
154.814 MT, on the previous
comparable period, driven
by lactose, cheese, whey and
WPC, and partially offset by
declines in SMP.
Australia dairy exports
decreased 32.3%, or
25,535 MT, in February
compared to February the
year prior, which benefited
from very strong export
volumes to China.
Lower volumes of fluid
milk products to China
as well as a decrease in
cheese and SMP are driving
this decrease.
Exports for the 12 months
to February were down
16.9%, or 156,642 MT, on the
previous comparable period.
This was predominantly
driven by decreases in
fluid milk products, WMP
and cheese.
NEW ZEALANDAUSTRALIAEUROPEAN UNIONUSA
%%%
%
%
%
Change for March 2023
compared March 2022
Change for February 2023
compared to February 2022
Change for February 2023
compared to February 2022
Change for February 2023
compared to February2022
Change for the 12 months
to February 2023
Change for the 12 months
to February 2023
Change for the 12 months
to March 2023
Change for the 12 months
to February 2023
1.432.3
6.2
1.4
5.616.99.43.8
%
%

To view a chart that
illustrates year-on-year
changes in imports –
4
OUR MARKETS
Global Imports
China, Latin America
and Asia monthly
imports increase. Middle
East & Africa monthly
imports decline
Latin America dairy
import volumes¹ increased
17.9%, or 27,875 MT, in
February compared to
February the year prior.
The increase was driven by
higher demand for WMP by
Brazil, SMP and cheese by
Mexico, and partially offset
by lower demand for fluid
milk products by El Salvador.
Imports for the 12 months to
February were up 11.4%, or
235,839 MT, on the previous
comparable period, driven by
higher volumes of WMP, SMP,
cheese and infant formula.
Asia (excluding China)
dairy import volumes¹
increased 0.3%, or 1,040 MT,
in February compared to
February the year prior.
The increase was driven
by stronger demand for
lactose by India and cultured
products by the Philippines,
and partially offset by
lower demand for WMP
by Bangladesh and infant
formula by Malaysia.
Imports for the 12 months to
February were down 3.2%, or
166,620 MT, on the previous
comparable period, driven
by a decrease in demand for
whey, fluid milk products,
SMP and cheese.
Middle East and Africa
dairy import volumes¹
decreased 4.1%, or 18,255 MT,
in February compared to
February the year prior.
The decrease was driven by
lower volumes of WMP and
cheese to Saudi Arabia and
Iraq, and partially offset by
higher demand of SMP by
Morocco and Egypt.
Imports for the 12 months
to February were up 1.4%, or
73,951 MT, on the previous
comparable period, driven
by increases in SMP, infant
formula and cheese, and
partially offset by a decline in
fluid milk products.
China dairy import
volumes increased by
1.8%, or 5,520 MT, in March
compared to March the
year prior. It is the first
year-on-year increase since
February 2022.
The increase was driven
by stronger demand
for whey from the US,
SMP from New Zealand
and infant formula from
the Netherlands, and largely
offset by lower demand for
WMP and fluid milk products.
Imports for the 12 months to
March were down 19.6%, or
782,447 MT, on the previous
comparable period driven by
a decline in WMP, fluid milk
products and SMP.
LATIN AMERICAASIAMIDDLE EAST & AFRICACHINA
1 Estimates are included for those countries that have not reported data.
%
%
%%
%
Change for February 2023
compared to February 2022
Change for March 2023
compared to March 2022
Change for February 2023
compared to February 2022
Change for February 2023
compared to February 2022
Change for the 12 months
to February 2023
Change for the 12 months
to February 2023
Change for the 12 months
to February 2023
1.80.317.9
3.21.4
%
Change for the 12 months
to March 2023
19.6
4.1
11.4
%
%

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 31 March
Season-to-date
1 June to 31 March
Season-to-date
1 June to 31 March
Season-to-date
1 June to 31 March
Change for March 2023
compared to March 2022
Change for March 2023
compared to March 2022
Change for March 2023
compared to March 2022
Change for March 2023
compared to March 2022
6.90.31.50.7
0.90.21.71.0
VOLUME M LITRESDAY
JUNJULAUGSEPOCTNOVDECJANFEBMARAPRMAY










5
OUR MARKETS
Fonterra Milk Collections
NEW ZEALANDNORTH ISLANDSOUTH ISLANDAUSTRALIA
New Zealand Milk Collections
Fonterra's Australia
collections for March
were 8.5 million kgMS, a
6.9% increase from March
last season.
Collections increased
year-on-year as a result of
recruiting and retaining more
Australian dairy farmers
across Victoria and Tasmania.
Season-to-date collections
reached 82.4 million kgMS,
0.9% behind last season.
North Island milk
collections in March were
75.9 million kgMS, 1.5%
ahead of March last season.
Season-to-date collections
were 758.6 million kgMS,
1.7% behind last season.
The North Island continues
to see a good mixture of
weather supporting strong
milk supply.
North Island farms are well
set up for autumn with
strong pasture covers and
animal condition.
South Island milk
collections in March were
61.8 million kgMS, 0.3%
behind last March.
Season-to-date collections
were 525.3 million kgMS,
0.2% ahead of last season.
The South Island has
seen some good rain and
moderate temperatures with
more settled conditions.
The South Island continues
to benefit from the rainfall,
aiding in pasture recovery,
and good animal condition
should allow for a natural
wind down for the season.
Fonterra's New Zealand
collections for March were
137.8 million kgMS, 0.7%
higher than last March.
Season-to-date collections
were 1,284.0 million kgMS,
1.0% behind last season.
March weather was mixed
with intermittent rain and
warmer weather conducive
to strong pasture growing
conditions. Lower overnight
temperatures caused lower
milk production early in the
month, with a recovery and
flattening towards the end of
the month.
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%

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

, 
,
,
,
,
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.
.
.
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 recent turmoil witnessed across financial markets, due
to concerns over the health of the global banking sector,
receded over the past month as authorities moved to restore
confidence in the financial system. This ushered in a period
of relative stability across most financial markets, including
the NZD/USD exchange rate which did not deviate far from
62 to 63 US cents.
Fonterra GDT results at
last trading event
18 April 2023:
The next trading event will be held on 2 May 2023. Visit www.globaldairytrade.info for more information.
Change in Fonterra’s
weighted average product
price from previous event
4.2
Fonterra’s weighted
average product price

(USD/MT)
3,414
USD
Fonterra product quantity
sold on GDT
000’ MT
21.4
NORTH ASIA (INCLUDING CHINA)
SOUTH EAST ASIA
MIDDLE EAST AND AFRICA
LATIN AMERICA
OTHER
USD 3,089/MT
1.2
WMP
USD 2,874/MT
10.4
SMP
USD 4,981/MT
5.2
AMF
USD 4,411/MT
5.8
CHEDDAR
USD 4,821/MT
4.9
BUTTER
21,388
MT
LATEST AUCTION
486,448
MT
FINANCIAL
YEAR‑TO‑DATE

7
Our Performance
Methane JV "now open
for business"
Established in February,
the Centre for Climate
Action Joint Venture is now
open for business and has
appointed an experienced
Board of Directors, chaired
by Sir Brian Roche.
The JV is a world-first
investment fund established
to help pasture-based
farmers in Aotearoa
New Zealand reduce their
agricultural emissions by
30% by 2030. The JV’s role
is to help New Zealand
farmers by making sure they
have equitable access to
affordable and effective tools
and technology to cut their
methane and nitrous oxide
emissions, while maintaining
efficiency, production
and profitability.
The JV’s shareholders are
Fonterra, ANZCO Foods,
Rabobank, Ravensdown,
Silver Fern Farms, Synlait,
and the Government through
MPI. Fonterra will contribute
up to $50 million over the
next four years in a public
private partnership that’s
working to find a solution to
biogenic methane.
Together the partners
will contribute around
$35 million a year until
2025 with the Government
matching this contribution,
resulting in at least
$170 million invested over
this time.
In early April, the JV
made its first investment,
contributing $1.8 million
to Ruminant BioTech,
a New Zealand-based
start-up that is developing a
slow-release, biodegradable,
methane-inhibiting bolus.
Initial trials are promising,
indicating the potential to
reduce methane emissions
from pasture-fed cows by up
to 70% for up to six months.
The bolus is easily swallowed
by the cow, and then
biodegrades in the rumen.
Bolus’ are already in use on
New Zealand farms.
Joining Sir Brian Roche on
the Board are Jessie Chan,
Sir Neville Jordan,
Greg Murison and our
Co-op’s Chief Operating
Officer, Fraser Whineray.
Executive Director
Wayne McNee says the JV is
focused on getting tools into
farmers’ hands.
“Our shareholders are
committed to ensuring
the JV is commercially
led, informed by science,
and investing in and
developing practical tools
to reduce agricultural
emissions. We also
recognise the importance
of intergenerational
stewardship (kaitiakitanga)
of the land and the key role
te ao Maori beliefs, values
and aspirations will play in
the success of the JV.
“The JV must be a problem
solver and value creator.
Our shareholders have
invested in the JV because
it is working to solve the
emissions challenge for
our pasture-based farmers,
and because it has the
potential to be the world
leader in commercialising
emissions-reduction
solutions for pasture-based
farmers that can be sold in
New Zealand and globally.
“The JV is unique because
of the breadth of its sector
expertise and commercial
focus. New Zealand’s
pasture-based farming is also
unique, so we are working
to find tools that will work
for our farmers – investing
to help turbo-charge
innovations through to
commercialisation, taking
an equity stake in promising
new technologies to get
these tools into farmers’
hands faster, and helping
to remove any barriers to
farmers being able to use
these tools.”
Almost half of New Zealand’s
greenhouse gas emissions
come from agriculture,
which makes up 75% of
New Zealand’s goods
exports. Since agriculture
is the backbone of
New Zealand’s economy,
the importance of reducing
emissions in agriculture
cannot be understated.
Wayne McNee says, “our
global customers are setting
ambitious greenhouse gas
reduction targets, and if we
can’t meet these targets,
export revenue will be under
threat. We must confront
this reality, and I believe we
can meet the challenge.”

Fonterra Dairy Woman
of the Year
A fourth generation Taranaki
farmer, the Executive
Director of DCANZ, an
Ashburton farmer and a
former Northland Dairy
Manager of the Year winner
are the four finalists for the
2023 Fonterra Dairy Woman
of the Year award.
The award recognises an
outstanding woman who
has contributed to the dairy
sector with passion, drive,
innovation and leadership.
The finalists are Donna Cram,
Kimberly Crewther,
Rebecca Miller and
Sheena Penwarden.
The winner will be
announced at the Dairy
Women's Network annual
conference in Invercargill on
3 May.
New Zealand Dairy
Industry Awards
Fonterra farmers have
claimed more than three
quarters of the 2023 regional
New Zealand Dairy Industry
Awards titles.
24 of the 30 main awards
went to Fonterra farmers,
including a clean sweep of
the Share Farmer of the Year,
Dairy Manager of the Year
and Dairy Trainee of the Year
prizes in five of the 11 regions
(Waikato, Bay of Plenty,
Canterbury/North Otago,
Manawatu and Taranaki).
All 30 regional winners
now progress to another
judging round with the
overall New Zealand winners
announced at the National
Awards Dinner on May 13 in
Auckland. Also announced at
the National Awards Dinner
will be the recipient of the
2023 Fonterra Responsible
Dairying Award (the John
Wilson Memorial Trophy).
Celebrating
Success –
Awards
round up
Our Co-op
8
Meet the little site
in Taranaki behind
New Zealand’s
favourite cheese
Recently, cheese makers
from across the country
eagerly awaited the results of
the New Zealand Champions
of Cheese Awards.
More than 250 cheeses
were judged by a panel of
expert judges, and our Kapiti
and Mainland cheeses were
some of the favourites –
taking home an impressive
39 medals.
Our Fonterra Brands
New Zealand site on Bridge
Street has been in the Eltham
community making cheese
for over a century – including
beloved Kiwi brands like
Kapiti and Mainland.
The cheese which comes
from Bridge Street is special
because it is made by hand.
All except one of the gold
winning Kapiti specialty
cheeses are made at our site
on Bridge Street.
This includes Kapiti Bridge
Street Blue and Ash Brie,
which are both from the
new Kapiti Artisan range
cheeses – recently created
by our Master Cheese Maker
Cathy Lang.

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 February; New Zealand and US to March.
NOTE: Data for EU, US and Australia to February; New Zealand to March.
NOTE: Data for Asia, Middle East & Africa, Latin America to February; and China to March.
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 
,
,
,

,

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,

,

,
,


,
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)
MARCH
2023
MARCH

2022
MONTHLY
CHANGE
SEASON-
TO-DATE
2022/23
SEASON-
TO-DATE
2021/22
SEASON-
TO-DATE
CHANGE
Total Fonterra
New Zealand
137.8136.80.7%1,284.01,296.4(1.0%)
North Island75.974.81.5%758.6772.1(1.7%)
South Island61.862.0(0.3%)525.3524.30.2%
Australia8.57.96.9%82.483.1(0.9%)
Fonterra GDT results
This table provides more
information on the latest
results, including a snapshot
of the year-to-date results.
LAST TRADING EVENT
(18 APRIL 2023)
YEAR-TO-DATE

(FROM 1 AUGUST 2022)
Quantity Sold on GDT
(Winning MT)
21,388486,448
Change in Quantity Sold on GDT
over same period last year
2.4%4.4%
Weighted Average Product Price
(USD/MT)
3,4143,633
Change in Weighted Average
Product Price over same period
last year
(30.5%)(17.4%)
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.
MEA
Middle East Africa.
MPC
Milk Protein Concentrate.
Non-Reference Products
All dairy products,
except for Reference
Products, produced
by the New Zealand
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.
WPI
Whey Protein Isolate.