Global Dairy Update May 2023

• Third quarter
business update.
• Fonterra taking further
steps to decarbonise and
lift efficiency.
1
Global Dairy
UPDATE
• New Zealand, EU and US monthly production
increases, Australia production continues
to decline. New Zealand and Australia down
on a 12 month basis.
• New Zealand and EU monthly exports up.
Australia and US exports decline.
• Latin America imports increase.
China, Asia and Middle East & Africa
monthly imports decline.
• Fonterra New Zealand milk collections for
April were 121.2 million kgMS, 8.1% higher
than April in the prior season. Season-to-date
collections were 1,405.1 million kgMS, 0.2%
behind last season.
• Fonterra Australia milk collections for April
were 8.4 million kgMS, 6.1% up on April in the
prior season. Season-to-date collections are
0.3% down on last season.
• Take a peek at Shenzhen’s new space for innovative and
delicious drinks.
Key Dates
1 June 2023
Start of the 2023/24 Season
31 July 2023
End of FY23 Financial Year
September 2023
FY23 Annual Results
Announcement
M AY 2 02 3
For further details,
visit our website –

%
%
%%
%
%
%%
Change for April 2023
compared to April 2022
Change for April 2023
compared to April 2022
Change for April 2023
compared to April 2022
Change for February 2023
compared to February 2022
Change for the 12 months
to April 2023
Change for the 12 months
to April 2023
Change for the 12 months
to April 2023
Change for the 12 months
to February 2023
0.31.76.7
6.30.10.7
0.7
1.1
2
OUR MARKETS
Global Production
New Zealand, EU and
US monthly production
increases, Australia
production continues
to decline
New Zealand¹ milk
production was up 6.7%
on a litres basis, (up 7.3%
on milk solids basis) in April
compared to the same
period the year prior.
Production continues to
recover due to intermittent
rain and warmer weather,
conducive to strong pasture
growing conditions.
New Zealand milk
production for the
12 months to April was
down 1.1% on the previous
comparable period.
Fonterra New Zealand
collections are reported for
April, see page 5 for details.
Australia milk
production decreased 1.7%
in April compared to the
same period the year prior.
Favourable Autumn
conditions, with improved
feed availability, have slowed
the rate of milk production
decline in April.
Australia milk production for
the 12 months to April was
6.3% lower compared to the
previous comparable period.
Fonterra collections in
Australia are reported for
April, 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 0.3% in April
compared to the same
period the year prior.
Production continued
to increase year-on-year
although at a slower pace
compared to prior months.
This increase was driven by
larger herd sizes relative to
the same period last year.
However, due to a large barn
fire, cow numbers decreased
in April.
Milk production for the
12 months to April increased
0.7% 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
New Zealand and
EU monthly exports
up. Australia and US
exports decline
Total New Zealand dairy
exports increased 28.0%, or
74,273 MT, in April compared
to the same period the
year prior.
The increase was driven by
higher export volumes of
WMP and SMP to Algeria as
a result of sucessful tenders,
as well as higher export
volumes of WMP and SMP to
China against a weak April in
the prior period.
Exports for the 12 months to
April were down by 1.9%, or
64,332 MT, on the previous
comparable period. This
was driven by decreases in
WMP and MPC, and partially
offset by increases in SMP
and AMF.
EU dairy exports
increased 7.3%, or 42,152  MT,
in March compared to the
same period the year prior.
The increase was driven by
butter¹, SMP to Algeria and
China, and partially offset
by a decrease in fluid milk
products to China.
Exports for the 12 months to
March were down 7.7%, or
537,731 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 0.9%, or 2,251  MT,
in March compared to
the same period the year
prior. This is the second
year-on-year decrease since
April 2022.
Slightly lower volumes of
SMP, whey, butter and WMP
were partially offset by an
increase in exports of lactose
to China and New Zealand.
Exports for the 12 months
to March were up 5.5%, or
150,356 MT, on the previous
comparable period, driven
by lactose, cheese, whey
and WPC. This was partially
offset by declines in SMP.
Australia dairy
exports decreased 19.5%,
or 15, 727 MT, in March
compared to the same
period the year prior, which
benefited from strong export
volumes to China.
The decline in exports was
driven by lower volumes of
fluid milk products to China,
as well as a decrease in
exports of cheese and WMP.
Exports for the 12 months to
March were down 19.7%, or
183,325 MT, on the previous
comparable period.
This was predominantly
driven by decreases in fluid
milk products, WMP, cheese
and SMP.
NEW ZEALANDAUSTRALIAEUROPEAN UNIONUSA
%%%
%
%
%
Change for April 2023
compared April 2022
Change for March 2023
compared to March 2022
Change for March 2023
compared to March 2022
Change for March 2023¹
compared to March 2022
Change for the 12 months
to March 2023
Change for the 12 months
to March 2023
Change for the 12 months
to April 2023
Change for the 12 months
to March 2023
0.919.5
28.0
7.3
5.519.77.71.9
%
%
1 Butter export volumes for March 2023 are currently under review by Eurostat due to anomalies in the data..

To view a chart that
illustrates year-on-year
changes in imports –
4
OUR MARKETS
Global Imports
Latin America imports
increase. China, Asia
and Middle East & Africa
monthly imports decline
Latin America dairy
import volumes¹ increased
10.5%, or 20,140 MT, in March
compared to the same period
the year prior.
The increase was driven by
higher imported volumes of
WMP and lactose by Brazil,
and SMP and AMF by Mexico.
Imports for the 12 months
to March were up 12.4%, or
256,518 MT, on the previous
comparable period, driven by
higher volumes of WMP, SMP,
cheese and AMF.
Asia (excluding China)
dairy import volumes¹
decreased 3.8%, or 17,671 MT,
in March compared to the
same period the year prior.
The decrease was driven by
lower imported volumes
of WMP by Thailand and
Bangladesh, fluid milk
products by the Philippines,
SMP by Indonesia and cheese
by Japan, and partially offset
by increased volumes of
whey by Vietnam.
Imports for the 12 months to
March were down 4.0%, or
203,720 MT, on the previous
comparable period, driven by
lower volumes of whey, infant
formula, WPC and WPI.
Middle East and Africa
dairy import volumes¹
decreased 8.1%, or 37,696 MT,
in March compared to the
same period the year prior.
The decline was driven by
lower volumes of fluid milk
products and cheese to Iraq,
and WMP to Oman, and
partially offset by higher
demand for SMP to Algeria.
Imports for the 12 months
to March were down 0.1%,
or 4,586 MT, on the previous
comparable period, driven
by a decline in fluid milk
products and WMP, and
partially offset by an increase
of SMP.
China dairy import
volumes decreased by 0.5%,
or 1,377 MT, in April compared
to the same period the
year prior.
The pace of China’s reopening,
post-lock down restrictions,
as well as high domestic
production, continues to
impact import volumes,
particularly WMP and
fluid milk products. This
was partially offset by an
increase in demand for SMP
from New Zealand and
Australia, as well as whey and
infant formula.
Imports for the 12 months
to April were down 18.1%, or
710,447 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 March 2023
compared to March 2022
Change for April 2023
compared to April 2022
Change for March 2023
compared to March 2022
Change for March 2023
compared to March 2022
Change for the 12 months
to March 2023
Change for the 12 months
to March 2023
Change for the 12 months
to March 2023
0.53.810.5
4.00.1
%
Change for the 12 months
to April 2023
18.1
8.1
12.4
%
%

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 30 April
Season-to-date
1 June to 30 April
Season-to-date
1 June to 30 April
Season-to-date
1 June to 30 April
Change for April 2023
compared to April 2022
Change for April 2023
compared to April 2022
Change for April 2023
compared to April 2022
Change for April 2023
compared to April 2022
6.15.810.08.1
0.30.70.90.2
VOLUME M LITRESDAY
JUNJULAUGSEPOCTNOVDECJANFEBMARAPRMAY










5
OUR MARKETS
Fonterra Milk Collections
NEW ZEALANDNORTH ISLANDSOUTH ISLANDAUSTRALIA
New Zealand Milk Collections
Fonterra's Australia
collections
for April were
8.4 million kgMS, a 6.1%
increase from April last season.
Collections increased in April as
a result of favourable autumn
conditions, as well as recruiting
and retaining more Australian
dairy farmers across Victoria
and Tasmania.
Season-to-date collections
reached 90.8 million kgMS,
0.3% behind last season.
North Island milk
collections in April were
67.0 million kgMS, 10.0%
ahead of April last season.
Season-to-date collections
were 825.6 million kgMS, 0.9%
behind last season.
The North Island continues to
see a good mixture of weather
supporting strong milk supply.
Recent favourable weather
conditions have supported
strong pasture cover and good
animal conditions as farms
prepare for the new season.
South Island milk
collections in April were
54.2 million kgMS, 5.8% ahead
of last April.
Season-to-date collections
were 579.5 million kgMS, 0.7%
ahead of last season.
The South Island has
experienced good rainfall and
warmer temperatures with
more settled conditions.
The South Island continues to
benefit from the rainfall aiding
in pasture recovery and good
animal condition, allowing
for a steady wind down for
the season.
Fonterra's New Zealand
collections for April were
121.2 million kgMS, 8.1% higher
than last April.
Season-to-date collections
were 1,405.1 million kgMS,
0.2% behind last season.
April weather was mixed with
intermittent rain and warmer
weather conducive to strong
pasture growing conditions.
%%%
Forecast milk collection for the
2023/24 season
1, 4 8 0M
kgMS
Forecast Farmgate Milk Price for
the 2023/24 season
NZD
per
kgMS
%
7. 2 5 -
8.75
Outlook for Fonterra
in New Zealand
%
The inclusion of off-GDT sales
contributed approximately
eight cents per kgMS to the
Milk Price for the season
to 30 April 2023.

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

,
,
,
,

,
.
.

.
.

.

.
PRICE INDEX
NZD  USD
OUR MARKETS
Fonterra Global Dairy Trade Results
Fonterra GDT sales
by destination:
Dairy commodity prices and New Zealand
dollar trend
Financial markets have undergone a period of relative stability
over the past two months, allowing for bonds, equities, and
foreign exchange rates to broadly consolidate within their
recent trading ranges. The NZD/USD exchange rate has
continued to trade between 61 and 64 US cents.
Fonterra GDT results at
last trading event
16 May 2023:
The next trading event will be held on 6 June 2023. Visit www.globaldairytrade.info for more information.
Change in Fonterra’s
weighted average product
price from previous event
2.1
Fonterra’s weighted
average product price

(USD/MT)
3,527
USD
Fonterra product quantity
sold on GDT
000’ MT
19.9
NORTH ASIA (INCLUDING CHINA)
SOUTH EAST ASIA
MIDDLE EAST AND AFRICA
LATIN AMERICA
OTHER
USD 4,600/MT
4.8
AMF
USD 5,068/MT
2.4
BUTTER
USD 2,793/MT
3.4
SMP
USD 3,244/MT
0.4
WMP
USD 4,407/MT
3.4
CHEDDAR
19,925
MT
LATEST AUCTION
527,114
MT
FINANCIAL
YEAR‑TO‑DATE

7
Our Performance
Fonterra taking further
steps to decarbonise
and lift efficiency
Fonterra is continuing to
progress its decarbonisation
work with the
announcement of another
site transitioning from
coal and the installation
of a heat pump and solar
thermal system.
The Co-operative will
convert its coal boilers at
its Hautapu site to wood
pellets and install a heat
pump at its Palmerston
North milk processing
site that supplies the local
market. Both projects have
received support from the
Government Investment
in Decarbonising Industry
(GIDI) Process Heat
Contestable Fund.
Fonterra Chief Operating
Officer Fraser Whineray
says the Co-operative is
commercially focused on
reducing emissions.
“There are a number of
solutions we’re using to
decarbonise our operations
and these two projects are
a good example of different
technologies available.”
Once complete in early 2024
the Hautapu site will reduce
our carbon emissions by a
forecast 15, 785 tonnes per
annum – the equivalent of
taking about 6,500 cars off
New Zealand’s roads.
The heat pump at the
Palmerston North site will
convert wasted heat from
the refrigeration system
into a heat source. This will
reduce the amount of natural
gas needed for process heat.
The site will also generate
additional heat via a solar
thermal plant.
“This GIDI co-funding will
help the Co-operative
progress two emission
reduction projects ahead of
time. It will help us continue
to make progress towards
our target of reducing
emissions by 30% across
all our manufacturing
operations by 2030 (from a
2018 baseline), on the way
to net zero by 2050, and
transition out of coal by
2037” says Mr Whineray.
Fonterra is receiving up to
$2.5 million in co-funding
to complete the work at
Hautapu and $425,000
for the Palmerston North
site project.
These projects are just
two of many underway to
decarbonise the Fonterra
business, such as the Waitoa
and Stirling sites that are
in the process of installing
wood biomass boilers to
transition out of coal.
The Stirling wood biomass
boiler was fired up for the
first time in April, marking
the next step on the site’s
transition to be totally
reliant on renewable
energy for its process heat.
Changing to this boiler will
reduce the annual carbon
emissions by 18,500 tonnes,
the equivalent of taking
approximately 7,700 cars off
New Zealand’s roads.
The new Waitoa wood
biomass boiler, due to be
operational in November
2023, will reduce the site’s
annual carbon emissions
by approximately 48,000
tonnes, the equivalent of
taking approximately 20,000
cars off New Zealand’s roads.

Our Co-op
8
Take a peek at
Shenzhen’s new space
for innovation and
delicious drinks
Fonterra has established a
fifth application centre in
China, but unlike the four,
the newest one is focused on
beverage applications.
Our newest facility opened
on 25 April. It is based in
China’s southern city of
Shenzhen and is equipped
to design innovative
solutions for the Co-op’s
China customers.
It’s a huge milestone for
Fonterra and Shenzhen is the
perfect location for it, says
Fonterra Greater China CEO
Teh-han Chow.
“Many of China’s leading
beverage customers
are headquartered in
Shenzhen where new ideas
flourish due to the city’s
young population and
innovative environment.
“We see great potential in
combining Fonterra's high-
quality dairy products with
the rich flavours of Chinese
beverages. This fusion is sure
to create some exciting new
products that will delight
both consumers and industry
players alike.”
China is a highly competitive
beverage market, with
consumers constantly
seeking the next best drink.
Last year, 1,434 new kinds
of non-alcoholic beverages
were launched in China by
key tea and beverage brands.
Businesses must adapt
quickly to market trends
and continuously create
novel products that typically
combine traditional tea
ingredients, dairy and
fruit products.
“The Shenzhen application
centre provides a new
platform to explore the
diverse use of Fonterra
products in beverages
and provide innovative
application solutions to meet
the local needs of Chinese
consumers,” says Teh-han.
“We must be more agile
and continue to develop
our capabilities to produce
cutting-edge solutions
that add value to our
customers' businesses.
“As a New Zealand company
deeply rooted in China for
50 years, we want to play an
active role in the industry,
integrate ourselves into the
local innovation ecosystem,
and empower the high-
quality development of the
whole value chain.”
A team of technical experts
and experienced chefs are
stationed at the Shenzhen
application centre. They
help to create an interactive,
experiential space for
customers, through product
development seminars,
demonstrations, and virtual
live teachings.
Our four other application
centres are based in the
cities of Shanghai, Beijing,
Guangzhou and Chengdu.
While the Shenzhen
application centre will
be focused on beverage
applications, it will also have
bakery capacity. Likewise,
the four other application
centres have beverage
application capacity.

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 February; New Zealand, US and Australia to April.
NOTE: Data for EU, US and Australia to March; New Zealand to April.
NOTE: Data for Asia, Middle East & Africa, Latin America to March; and China to April.
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)
APRIL
2023
APRIL

2022
MONTHLY
CHANGE
SEASON-
TO-DATE
2022/23
SEASON-
TO-DATE
2021/22
SEASON-
TO-DATE
CHANGE
Total Fonterra
New Zealand
121.2112.18.1%1,405.11,408.5(0.2%)
North Island67.060.910.0%825.6833.0(0.9%)
South Island54.251.25.8%579.5575.50.7%
Australia8.47.96.1%90.891.1(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
(16 MAY 2023)
YEAR-TO-DATE

(FROM 1 AUGUST 2022)
Quantity Sold on GDT
(Winning MT)
19,925527,114
Change in Quantity Sold on GDT
over same period last year
(16.1%)2.6%
Weighted Average Product Price
(USD/MT)
3,5273,628
Change in Weighted Average
Product Price over same period
last year
(20.6%)(17.6%)
Change in Weighted Average
Product Price from previous event
(2.1%)–
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.
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.