Global Dairy Update June 2023

• Fonterra launches new nutrition science venture arm;
announces first investment.
1
Global Dairy
UPDATE
• New Zealand, Australia, EU and US monthly
production increases. New Zealand and
Australia down on a 12 month basis.
• New Zealand monthly exports up.
Australia, EU and US exports decline.
• Latin America, China and Middle East & Africa
monthly imports increase. Asia imports flat.
• Fonterra New Zealand milk collections for
the season ended 31 May were 1,480.9 million
kgMS, up 0.2% on the prior season.
• Fonterra Australia milk collections for May
were 8.5 million kgMS, 6.3% up on May in the
prior season. Season-to-date collections are
0.3% up on last season.
• Meals made with love for Te Aroha.
Key Dates
12 July 2023
Special Meeting of
Shareholders
31 July 2023
End of FY23 Financial Year
August 2023
Proposed Capital Return
Payment to Shareholders
September 2023
FY23 Annual Results
Announcement
JUNE 2023

%
%
%%
%
%
%%
Change for May 2023
compared to May 2022
Change for May 2023
compared to May 2022
Change for May 2023
compared to May 2022
Change for April 2023
compared to April 2022
Change for the 12 months
to May 2023
Change for the 12 months
to May 2023
Change for the 12 months
to May 2023
Change for the 12 months
to April 2023
0.61.67.4
5.60.50.8
0.3
0.5
2
OUR MARKETS
Global Production
New Zealand, Australia, EU
and US monthly production
increases. New Zealand
and Australia down on a
12 month basis
New Zealand¹ milk
production was up 7.4%
on a litres basis, (up 8.4%
on milk solids basis) in May
compared to the same
period the year prior.
Milk production was the
largest on record for the
month of May. This was
driven by favourable weather
conditions with good
pasture cover.
New Zealand milk
production for the 12 months
to May was down 0.5% on
a litres basis (up 0.2% on
a milk solids basis) on the
previous comparable period.
Fonterra New Zealand
collections are reported for
May, see page 5 for details.
Australia milk
production increased 1.6%
in May compared to the
same period the year prior.
The production increase was
driven by mild conditions
coupled with rainfall.
Australia milk production for
the 12 months to May was
5.6% lower compared to the
previous comparable period.
Fonterra collections in
Australia are reported for
May, see page 5 for details.
EU milk production²
increased 0.3% in April
compared to April the
year prior.
The production increase was
driven primarily by Germany,
the Netherlands and
Poland, and partially offset
by declines in Italy, France,
and Ireland.
EU milk production for
the 12 months to April was
up 0.5% on the previous
comparable period.
Increases in Germany, the
Netherlands, Poland and
Belgium were partially offset
by declines in France, Italy
and Spain.
US milk production
increased by 0.6% in May
compared to the same
period the year prior.
The production increase
was driven by improved
productivity per cow due
to favourable weather
conditions and lower
feed prices.
Milk production for the
12 months to May increased
0.8% 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 monthly
exports up. Australia, EU
and US exports decline
Total New Zealand dairy
exports increased 36.6% or
92,630 MT, in May compared
to the same period the
year prior.
The increase was due to
higher export volumes of
WMP, cheese and SMP. May
was the largest month on
record for export volumes
of WMP, driven by increased
volume to Algeria and China.
Exports for the 12 months
to May were up 2.3%, or
78,618 MT, on the previous
comparable period. This was
driven by increases in SMP,
butter, AMF and cheese
partially offset by decreases
in WMP.
EU dairy exports in April
decreased 0.1%, or 139 MT, in
April compared to the same
period the year prior.
The decline in exports was
driven by lower volumes of
infant formula to China. This
was partially offset by an
increase in export volumes of
SMP to Algeria and fluid milk
products to the Philippines.
Exports for the 12 months
to April were down 6.4%,
or 442,581 MT, on the
previous comparable period,
driven by declines in fluid
milk products, cheese and
WMP, and partially offset by
increases in infant formula,
SMP and cultured products.
US dairy exports
decreased 13.0%, or
33,160 MT, in April compared
to the same period the
year prior.
The decrease was driven
by lower export volumes
of SMP to Philippines,
whey to Canada and China,
and cheese to Japan and
South Korea.
Exports for the 12 months
to April were up 4.7%, or
130,215 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 23.8%, or
14,971 MT, in April compared
to the same period the
year prior.
The decline in exports was
driven by lower volumes of
fluid milk products to China,
as well as a decrease in
exports of SMP and cheese.
Exports for the 12 months to
April were down 20.8%, or
192,017 MT, on the previous
comparable period.
This was predominantly
driven by decreases in fluid
milk products, WMP, SMP,
and cheese, mainly due to
lower milk production.
NEW ZEALANDAUSTRALIAEUROPEAN UNIONUSA
%%%
%
%
%
Change for May 2023
compared May 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
Change for the 12 months
to April 2023
Change for the 12 months
to April 2023
Change for the 12 months
to May 2023
Change for the 12 months
to April 2023
13.023.8
36.6
0.1
4.720.86.42.3
%
%

To view a chart that
illustrates year-on-year
changes in imports –
4
OUR MARKETS
Global Imports
Latin America, China
and Middle East
& Africa monthly
imports increase. Asia
imports flat
Latin America dairy
import volumes¹ increased
9.8%, or 17,674 MT, in April
compared to the same period
the year prior.
The increase was driven by
higher imported volumes of
WMP by Brazil, and SMP and
cheese by Mexico.
Imports for the 12 months
to April were up 12.7%, or
263,705 MT, on the previous
comparable period, driven by
higher volumes of WMP, SMP,
cheese and AMF.
Asia (excluding China)
dairy import volumes¹
in April were in line with the
same period the year prior.
Import volumes of AMF
by Vietnam increased. This
was offset by a decrease in
import volumes of SMP by
the Philippines, WMP by
Bangladesh and cheese by
South Korea.
Imports for the 12 months
to April were down 3.9%, or
201,474 MT, on the previous
comparable period, driven
by lower import volumes
of SMP, fluid milk products,
cheese and WMP.
Middle East and Africa
dairy import volumes¹
increased 1.1%, or 4,982 MT, in
April compared to the same
period the year prior.
The increase was driven by
higher import volumes of
SMP by Algeria and infant
formula by Lebanon. This
was partially offset by a
decrease in import volumes
of cheese by Iraq and fluid
milk products by Libya.
Imports for the 12 months
to April were down 0.1%, or
6,809 MT, on the previous
comparable period. This was
driven by a decline in fluid
milk products and cultured
products, and partially offset
by an increase in SMP.
China dairy import
volumes increased by
0.9%, or 2,527 MT, in May
compared to the same
period the year prior.
The increase was driven
by higher import volumes
of whey from the US and
Belarus, lactose from the US
and SMP from New Zealand.
This was partially offset by a
decline in demand for fluid
milk products due to higher
domestic production.
Imports for the 12 months
to May were down 15.5%, or
586,174 MT, on the previous
comparable period driven by
a decline in WMP, fluid milk
products, cheese and SMP.
LATIN AMERICAASIAMIDDLE EAST & AFRICACHINA
1 Estimates are included for those countries that have not reported data.
%
%
%
%
%
Change for April 2023
compared to April 2022
Change for May 2023
compared to May 2022
Change for April 2023
compared to April 2022
Change for April 2023
compared to April 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
0.90.09.8
3.90.1
%
Change for the 12 months
to May 2023
15.5
1.1
12.7
%
%

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 May
For the 2022/23 Season
compared to the previous season
For the 2022/23 Season
compared to the previous season
For the 2022/23 Season
compared to the previous season
Change for May 2023
compared to May 2022
Change for May 2023
compared to May 2022
Change for May 2023
compared to May 2022
Change for May 2023
compared to May 2022
6.37.012.79.7
0.31.10.40.2
5
OUR MARKETS
Fonterra Milk Collections
NEW ZEALANDNORTH ISLANDSOUTH ISLANDAUSTRALIA
New Zealand Milk Collections
Fonterra's Australia
collections for May
were 8.5 million kgMS, a
6.3% increase from May
last season.
Collections increased in
May due to mild conditions
coupled with rainfall
supporting milk production,
as well as recruiting and
retaining more Australian
dairy farmers across Victoria
and Tasmania.
Season-to-date collections
reached 99.3 million kgMS,
0.3% ahead last season.
North Island milk
collections in May were
37.2 million kgMS, 12.7%
ahead of May last season.
The 2022/23 season
collections were
862.4 million kgMS, 0.4%
behind last season.
Soil moisture in the
North Island is still in surplus
and warmer weather has
enabled pasture cover to
improve in preparation for
calving in July. Most farms
have now dried off for the
new season.
South Island milk
collections in May were
39.0 million kgMS, 7.0%
ahead of last May.
The 2022/23 season
collections were 618.5 million
kgMS, 1.1% ahead of
last season.
The temperature in the
South Island has been
warmer than normal with
intermittent rain supporting
strong pasture growth.
Fonterra's New Zealand
collections for May were
76.2 million kgMS, 9.7%
higher than last May.
The 2022/23 season milk
collections were finalised at
1,480.9 million kgMS, 0.2%
ahead last season.
Favourable weather
conditions supported strong
milk supply at the end of the
season. Most farms are now
drying off herds to prepare
for the new season and
manage pasture cover.
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%
VOLUME M LITRESDAY
JUNJULAUGSEPOCTNOVDECJANFEBMARAPRMAY











%
%
%%
%
To view more information,
including a snapshot of the
rolling year-to-date results –
%
6
OUR MARKETS
Fonterra Global Dairy Trade Results
Fonterra GDT sales
by destination:
Dairy commodity
prices and New
Zealand dollar trend
The RBNZ signalled an
end to the current cycle of
increasing interest rates
which briefly pressured the
NZD down to below 60 US
cents. However, improving
risk appetite across global
financial markets provided
the backdrop for a recovery
to above 62 US cents.
Fonterra GDT results at
last trading event
20 June 2023:
The next trading event will be held on 4 July 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)
3,539
USD
Fonterra product quantity
sold on GDT
000’ MT
19.0
NORTH ASIA (INCLUDING CHINA)
SOUTH EAST ASIA
MIDDLE EAST AND AFRICA
LATIN AMERICA
OTHER
USD 4,533/MT
2.9
CHEDDAR
USD 5,379/MT
5.7
BUTTER
USD 3,172/MT
0.0
WMP
USD 4,758/MT
0.6
AMF
USD 2,724/MT
2.7
SMP
18,999
MT
LATEST AUCTION
567,157
MT
FINANCIAL
YEAR‑TO‑DATE
GDT PRICE INDEXNZDUSD SPOT RATE
MAY OCT MAR MAY JUL OCT DEC MAR MAY JUL DEC 

,
,
,
,
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.
.

.
.
.
PRICE INDEX
NZD  USD

7
Our Performance
Fonterra launches
new nutrition science
venture arm; announces
first investment
Fonterra has announced a
new corporate ventures arm
to incubate, scale and invest
in ventures in the area of
nutrition science.
Chief Executive Miles Hurrell
says Fonterra is committed
to staying at the forefront
of nutrition innovation and
creating new value streams
for the Co-op.
“When we released our
long-term strategy in
September 2021, we
identified nutrition science
solutions as an area with
future growth potential.
“Nutrition science is a
segment of the global
health and wellness
category that goes beyond
everyday lifestyle and
wellness products. Given our
expertise in dairy science, we
committed to exploring the
potential for Fonterra to play
more boldly in this space.
“We have developed a
business case and agreed
on a way forward, which
includes establishing a
corporate ventures arm with
access to our dairy science
and innovation expertise,
combined with the agility of
a startup.
“The business will incubate
and scale a portfolio of
disruptive ventures by
developing solutions that
combine science, nutrition
and technology to make
a real impact on human
health,” says Mr Hurrell.
The business – provisionally
named Nutrition Science
Solutions (NSS) – will
operate as a standalone
business within Fonterra
with its own board and CEO.
It will target opportunities
for value creation by
adapting the Co-op’s existing
capabilities and assets,
alongside new disruptive
capabilities, through
partnerships and M&A.
“NSS will seek out, partner
with and invest in global
start-ups who will benefit
from access to Fonterra’s
dairy science expertise and
understanding of the global
market, while Fonterra
will benefit from access
to emerging technologies,
advancements in science,
and novel channels
to market.
“This is a new way of
working for Fonterra, but
one in which we see a lot of
potential,” says Mr Hurrell.
First investment
Fonterra has disclosed its
first investment through
the new ventures arm,
US$10 million for a
minority shareholding
in Pendulum, a biotech
company pioneering the next
frontier of metabolic health
through its microbiome-
targeted products.
The growth-stage
San Francisco-based
company specialises in
targeting metabolic health
through evidence-based
microbiome solutions.
The partnership will see
Pendulum and Fonterra
establish a presence in
global markets, co-develop
and commercialise next
generation microbiome
products that are
scientifically formulated
to make measurable
improvements to
people’s health.
“This strategic partnership
will enable Fonterra and
Pendulum to leverage each
other’s strengths – Fonterra’s
innovation, manufacturing
expertise and established
leadership in global markets,
together with Pendulum’s
deep innovation, microbiome
expertise and growing
leadership in the US market,”
says Mr Hurrell.
Pendulum CEO and
Co-founder Colleen Cutcliffe
says Pendulum is founded
and led by world-class
scientists in microbiology,
biochemistry, computational
and clinical trials, who are
creating clinically-backed,
peer-reviewed products
that merge the power and
efficacy of a pharmaceutical
with the safety and
accessibility of a probiotic.
“Pendulum’s team of top-tier
scientists are conducting
cutting edge microbiome
research and developing
products that will have a
meaningful and measurable
impact on metabolic health
for millions of people.
“This strategic partnership
with Fonterra enables us to
tap into their deep-rooted
manufacturing expertise and
established global leadership
to bring a new wave of
microbiome products to
market,” says Dr Cutcliffe.

Meals made with love
for Te Aroha
Te Aroha locals threw on
their aprons on Wednesday,
to cook up homemade meals
for their community.
Volunteers from Te Aroha
college, Fonterra and Ngati
Tumutumu Trust gathered
at Tui Pa marae for a
community cooking session.
Their tasty creations, which
included Mac & Cheese
and Cottage Pie, were then
frozen and will be distributed
to the local community
as needed.
The event was organised
by our local Hapori team
to support Kura Kai, a
registered charity who raise
funds to purchase chest
freezers, which are then
donated to the High Schools
they support. Kura Kai then
works alongside the school
to build a local community of
volunteers to cook nutritious
family meals to help keep
those freezers well stocked.
Rangatahi (youth) from
Te Aroha college are also
regularly involved in helping
prepare freezer friendly
meals, and identifying where
this food is needed most,
either within their school
whanau (family) or the wider
local community.
“This event has been a
long time coming! After
delays due to COVID, it was
awesome to finally bring
our volunteers together
with a bunch of other
incredible folks who share
the same heart for their
local community. We made
some beautiful meals to
share with families, and
new connections were
made so we can continue
to plan more of these
events in the future," said
Lorren Hawkins, a Fonterra
Relationship Manager.
The Hapori team sponsored
Te Aroha college to join the
Kura Kai programme and
have previously donated
funding towards other
cooking sessions.
As cooking sessions are
often led by the Ngati
Tumutumu Trust to keep the
community freezer filled, the
team also donated a second
meal storage freezer for Tui
Pa marae.
Kura Kai Founder
Makaia Carr says she is
grateful for the support from
the team at Fonterra.
“We’re so grateful for the
vision that Fonterra has
– showing they are keen
and ready to bring our
community groups together,
providing resources, and
allowing us all to work as one
towards our shared goals.
Helping and empowering our
rangatahi (youth). Nga mihi
(thank you) Fonterra, such
an awesome day of mahi,”
she said.
“One of our charities pou
(pillars) is connecting
the community through
kai (food), and this week
was a perfect example of
this. It can be as simple as
having a korero (chat) while
preparing the meals and this
is where connections and
manaakitanga (kindness)
is felt,” added Kura Kai GM
Marie Peterson.
Our Co-op
8
To view more information on
Fonterra in the Community –
To view more information on
Kura Kai –

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; New Zealand, US and Australia to May.
NOTE: Data for EU, US and Australia to April; New Zealand to May.
NOTE: Data for Asia, Middle East & Africa, Latin America to April; and China to May.
SOURCES: Government milk production statistics (DCANZ, Dairy Australia, Eurostat, USDA)/GTA trade data/Fonterra analysis.
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

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)
M AY
2023
M AY

2022
MONTHLY
CHANGE
SEASON-
TO-DATE
2022/23
SEASON-
TO-DATE
2021/22
SEASON-
TO-DATE
CHANGE
Total Fonterra
New Zealand
76.269.59.7%1,480.91,478.00.2%
North Island37.233.012.7%862.4866.0(0.4%)
South Island39.036.47.0%618.5611.91.1%
Australia8.58.06.3%99.399.00.3%
Fonterra GDT results
This table provides more
information on the latest
results, including a snapshot
of the year-to-date results.
LAST TRADING EVENT
(20 JUNE 2023)
YEAR-TO-DATE

(FROM 1 AUGUST 2022)
Quantity Sold on GDT
(Winning MT)
18,999567,157
Change in Quantity Sold on GDT
over same period last year
(4.7%)2.4%
Weighted Average Product Price
(USD/MT)
3,5393,619
Change in Weighted Average
Product Price over same period
last year
(23.4%)(18. 1%)
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.
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

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.