Fonterra revises FY24 forecast Farmgate Milk Price

18 August 2023

FONTERRA REVISES FY24 FORECAST FARMGATE MILK PRICE

Fonterra Co-operative Group has today reduced its 2023/24 season forecast Farmgate Milk Price range
from $6.25 - $7.75 per kgMS, with a midpoint of $7.00 per kgMS, to $6.00 - $7.50 per kgMS with a
midpoint of $6.75 per kgMS.

Fonterra CEO Miles Hurrell says Global Dairy Trade (GDT) prices have continued to fall since it revised its
Farmgate Milk Price earlier this month, requiring the Co-op to reduce its midpoint by a further 25 cents.

“GDT prices have fallen sharply since we released our opening forecast for the season in May, with the
overall index down 16% over that period.

“While our wide forecast range assumed movement in GDT prices, whole milk powder prices fell 10.9% in
the most recent trading event requiring us to revise our position again.

“Reduced demand from key importing regions for whole milk powder is weighing on prices. While
indications are demand will start to return over the second half of FY24, we do expect the pace of demand
growth to be subdued relative to initial expectations.

“In the meantime, we will continue to respond to market signals and adjust our forecast Farmgate Milk
Price to ensure that the impact of current prices and currency movements is transparent.

“This is a challenging time for New Zealand’s dairy farmers and the Co-op is doing all it can to support its
farmers,” says Mr Hurrell.

ENDS

For further information contact:

Fonterra Communications
24-hour media line
Phone: +64 21 507 072