Global Dairy Update January 2024

• Fonterra to install its first electrode boiler at Edendale to
reduce emissions.
1
Global Dairy
UPDATE
• New Zealand and Australia monthly
production increased. US and EU monthly
production decreased.
• Australia and EU monthly exports
increased. New Zealand and US monthly
exports decreased.
• Latin America, Asia and Middle East & Africa
monthly imports increased. China monthly
imports decreased.
• Fonterra New Zealand milk collections in
December were 176.6 million kgMS, 1.5%
ahead of December last season.
• Fonterra Australia milk collections in
December were 10.8 million kgMS, 1.3%
behind December last season.
• Fonterra launches a unique hybrid emissions reduction
solution in Palmerston North.
Key Dates
21 March 2024
FY24 Interim Results
Announcement
December to February 2024
Application period to
supply Fonterra
May 2024
FY24 Q3 Business Update
JANUARY 2024

%
%
%%
%
%
%
%
Change for December 2023
compared to December 2022
Change for December 2023
compared to December 2022
Change for November 2023
compared to November 2022
Change for November 2023
compared to November 2022
Change for the 12 months
to December 2023
Change for the 12 months
to December 2023
Change for the 12 months
to November 2023
Change for the 12 months
to November 2023
0.36.30.9
0.60.10.0
2.3
0.9
2
OUR MARKETS
Global Production
New Zealand and
Australia monthly
production increased.
US and EU monthly
production decreased
New Zealand milk
production was up 0.9%
on a litres basis (up 2.6%
on milk solids basis) in
December compared to the
same period the year prior.
The increase was due
to favourable weather
conditions supporting
pasture growth.
New Zealand milk
production for the 12 months
to December was up
0.9% on the previous
comparable period.
Fonterra New Zealand
collections are reported
for December, see page 5
for details.
Australia milk
production increased 6.3%
in November compared
to the same period the
year prior.
The increase was due
to favourable weather
conditions, while flooding
in November 2022 had a
negative impact.
Australia milk production
for the 12 months to
November was down 0.6%
on the previous comparable
period as there is still flood
impacted volumes in the
early months of 2023.
Fonterra collections in
Australia are reported
for December, see page 5
for details.
EU milk production¹
decreased 2.3% in November
compared to the same
period the year prior.
The decrease was driven
by Ireland, France and
the Netherlands.
EU milk production for the
12 months to November
was up 0.1% on the previous
comparable period.
The increase was driven
primarily by Germany, the
Netherlands and Poland,
partially offset by decreases
in France and Italy.
US milk production
decreased 0.3% in December
compared to the same
period the year prior.
Smaller herd numbers and
continued lower milk yield
has resulted in a fifth month
of consecutive decline in
production year‑on‑year.
Milk production for the
12 months to December
was flat.
This is mainly due to strong
production in the first half
of 2023, offset by the lower
production in the second
half of 2023.
NEW ZEALANDAUSTRALIAEUROPEAN UNIONUSA
To view a chart that
illustrates year‑on‑year
changes in production –
1 Excludes UK.

To view a chart that
illustrates year‑on‑year
changes in exports –
3
OUR MARKETS
Global Exports
Australia and EU monthly
exports increased.
New Zealand and US
monthly exports decreased
Total New Zealand dairy
exports decreased 5.3%,
or 19,756 MT, in December
compared to the same
period the year prior.
The decrease was mainly due
to lower exported volumes
of cheese to China, Japan
and Australia.
Exports for the 12 months to
December were up 5.2%, or
174,335 MT, on the previous
comparable period.
The increase was mainly due
to higher exported volumes
of WMP and SMP to China
following the removal of
tariffs on New Zealand
milk powders.
EU dairy exports
increased 0.5%, or 2,628  MT,
in November compared
to the same period the
year prior.
The increase was mainly
due to slower domestic
consumption. Exporters
shifted higher volumes of
fluid milk products and
cheese to the US and China.
This was partially offset by
lower export volumes of
infant formula.
Exports for the 12 months
to November were down
0.4%, or 29,002 MT, on the
previous comparable period.
This was mainly due to
lower volumes of fluid milk
products, partially offset
by higher export volumes
of SMP.
US dairy exports
decreased 6.0%, or
14,499 MT, in November
compared to the same
period the year prior.
The decrease was mainly due
to lower export volumes of
butter as higher prices over
the US autumn softened
demand for US butter.
Exports for the 12 months
to November were down
5.5%, or 158,477 MT, on the
previous comparable period.
This was mainly due to lower
export volumes of whey to
China and Canada, partially
offset by higher volumes
of lactose.
Australia dairy exports
increased 5.3%, or 3,209  MT,
in November compared
to the same period the
year prior.
The increase in exports
was mainly due to higher
export volumes of SMP and
lactose, partially offset by
lower export volumes of
sweetened milk powder and
fluid milk products.
Exports for the 12 months
to November were down
26.4%, or 229,615 MT, on the
previous comparable period.
This was mainly due to
lower export volumes of
fluid milk products, SMP,
and cheese and Australia’s
higher milk prices making
exports uncompetitive.
NEW ZEALANDAUSTRALIAEUROPEAN UNIONUSA
%
%
%
%
%
%
Change for December 2023
compared to December 2022
Change for November 2023
compared to November 2022
Change for November 2023
compared to November 2022
Change for November 2023
compared to November 2022
Change for the 12 months
to November 2023
Change for the 12 months
to November 2023
Change for the 12 months
to December 2023
Change for the 12 months
to November 2023
6.0
26.4
5.3
0.4
5.5
5.3
0.5
5.2
%
%

To view a chart that
illustrates year‑on‑year
changes in imports –
4
OUR MARKETS
Global Imports
Latin America, Asia
and Middle East &
Africa monthly imports
increased. China monthly
imports decreased
Latin America dairy
import volumes¹ increased
4.3%, or 8,335 MT, in
November compared to the
same period the year prior.
The increase was mainly due
to higher volumes of cheese
to Mexico and Brazil, and
whey to Mexico.
Imports for the 12 months to
November were up 7.4%, or
167,314 MT, on the previous
comparable period.
This was mainly due to higher
volumes of WMP to Brazil,
and cheese to Mexico.
Asia (excluding China)
dairy import volumes¹
increased 24.2%, or
91,155 MT, in November
compared to the same
period the year prior.
The increase was mainly due
to higher volumes of whey
to Malaysia and Vietnam,
and WMP to Thailand and
Sri Lanka.
Imports for the 12 months
to November were down
2.4%, or 124,833 MT, on the
previous comparable period.
This was mainly due to
lower volumes of SMP to
Philippines, and fluid milk
products to Malaysia.
Middle East and Africa
dairy import volumes¹
increased 12.9%, or
57,238 MT, in November
compared to the same
period the year prior.
The increase was mainly due
to higher volumes of WMP
to Algeria.
Imports for the 12 months to
November were up 4.8%, or
265,787 MT, on the previous
comparable period.
This was mainly due to
higher volumes of SMP to
Algeria and Iraq, and WMP
to Algeria. This was partially
offset by lower volume of
fluid milk product to Iraq
and Kuwait.
China dairy import
volumes decreased by
9.4%, or 24,848 MT, in
December compared to the
same period the year prior.
The decrease was driven
by lower import volumes
of WMP and SMP. This was
partially offset by an increase
in demand for lactose
and cheese.
Imports for the 12 months
to December were down
9.6%, or 330,683 MT, on the
previous comparable period.
This was due to a decline in
import demand of WMP and
fluid milk products reflecting
excess domestic supply.
LATIN AMERICAASIAMIDDLE EAST & AFRICACHINA
1 Estimates are included for those countries that have not reported data.
%
%
%%
%
Change for November 2023
compared to November 2022
Change for December 2023
compared to December 2022
Change for November 2023
compared to November 2022
Change for November 2023
compared to November 2022
Change for the 12 months
to November 2023
Change for the 12 months
to November 2023
Change for the 12 months
to November 2023
9.424.24.3
2.44.8
%
Change for the 12 months
to December 2023
9.6
12.9
7.4
%
%

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 December
Season-to-date
1 June to 31 December
Season-to-date
1 June to 31 December
Season-to-date
1 June to 31 December
Change for December 2023
compared to December 2022
Change for December 2023
compared to December 2022
Change for December 2023
compared to December 2022
Change for December 2023
compared to December 2022
1.33.80.21.5
0.33.22.30.1
VOLUME M LITRESDAY
JUNJULAUGSEPOCTNOVDECJANFEBMARAPRMAY










5
OUR MARKETS
Fonterra Milk Collections
NEW ZEALANDNORTH ISLANDSOUTH ISLANDAUSTRALIA
New Zealand Milk Collections
Fonterra's Australia
collections
in December
were 10.8 million kgMS, 1.3%
behind December last season.
Collections decreased in
December due to lower third‑
party collections, partially
off‑set by a small increase in
off‑farm intake.
Season‑to‑date collections
were 56.8 million kgMS, 0.3%
ahead of last season.
Collections increased mainly
due to improvement of
weather patterns.
North Island milk collection
in December was 97.9 million
kgMS, 0.2% behind December
last season.
Season‑to‑date collections
were 508.8 million kgMS, 2.3%
behind last season.
North Island collections in
December 2023 were relatively
similar to December 2022, after
tracking below last season in
prior months. This was largely
due to improved weather
conditions in the Waikato.
South Island milk collection
in December was 78.8 million
kgMS, 3.8% ahead of
December last season.
Season‑to‑date collections
were 344.9 million kgMS, 3.2%
ahead of last season.
The South Island has continued
to capitalise on favourable
weather conditions which
saw all regions outperform
December last season.
Fonterra's New Zealand
collections for December
were 176.6 million kgMS, 1.5%
ahead of December last season.
The increase was due to
continued favourable weather
conditions in the South Island.
Season‑to‑date collections
were 853.6 million kgMS, 0.1%
lower than last season.
Drier conditions are emerging
in parts of the country as
temperatures remain elevated.
%%
Forecast milk collection for the
2023/24 season
1, 4 6 5M
kgMS
Forecast Farmgate Milk Price for
the 2023/24 season
NZD
per
kgMS
%
7.0 0 -
8.00
Outlook for Fonterra
in New Zealand
%

%
%%
%
%
To view more information,
including a snapshot of the
rolling year‑to‑date results –
%
6
GDT PRICE INDEXNZDUSD SPOT RATE
JAN MAR
JUN
OCT
JAN MAY NOV AUG


,
,

,
,
.
.
.
.
.
.
PRICE INDEX
NZD  USD
OUR MARKETS
Fonterra Global Dairy Trade Results
Fonterra GDT sales
by destination:
Dairy commodity prices and New Zealand
dollar trend
During December, the US Federal Reserve Bank pivoted from
its bias towards tightening monetary policy and indicated
interest rate cuts could be likely during 2024. This change
was promoted by declining levels of inflation and moderation
in US economic activity. In response, future US interest rates
were repriced downward and the USD declined. The NZD/USD
exchange rate lifted to above 63 US cents late in December,
before settling back to 61 US cents.
Fonterra GDT results at
trading event 348
16 January 2024:
The next trading event will be held on 6 February 2024. Visit www.globaldairytrade.info for more information.
Change in Fonterra’s
weighted average product
price from previous event
3.4
Fonterra’s weighted
average product price

(USD/MT)
3,531
USD
Fonterra product quantity
sold on GDT
000’ MT
23.1
NORTH ASIA (INCLUDING CHINA)
SOUTH EAST ASIA
MIDDLE EAST AND AFRICA
LATIN AMERICA
OTHER
USD 4,217/MT
1.2
CHEDDAR
USD 5,908/MT
7.7
BUTTER
USD 3,341/MT
2.0
WMP
USD 5,842/MT
4.4
AMF
USD 2,636/MT
1.9
SMP
23,097
MT
LATEST AUCTION
368,572
MT
FINANCIAL
YEAR‑TO‑DATE

7
Our Performance
Fonterra to install its first electrode boiler at
Edendale to reduce emissions
In its next step to get out of
coal, Fonterra has announced
it will install a 20‑megawatt
electrode boiler at its
Edendale site in Southland.
This is another step for the
Co‑operative as it works
to get out of coal by 2037
and reduce Scope 1 and 2
emissions by 50% by 2030
(from 2018 baseline).
The forecast $36 million
investment in the electrode
boiler will reduce the
Edendale site’s emissions
by around 20% or
47,500 tonnes of CO₂e per
annum – the equivalent of
taking almost 20,000 cars
off New Zealand roads and
will reduce Fonterra’s overall
carbon emissions from its
New Zealand 2018 baseline
by nearly 3% per annum
once operational in FY25.
Fonterra Chief Operating
Officer (acting) Anna Palairet
says the team considered a
number of energy options
before deciding on the
electrode boiler.
“Fonterra has a complex
manufacturing operation
spanning the country. As
technologies develop, it’s
important we continually
assess which energy source
and technology is best for
each site.
“With up to 15 million litres
of milk being processed
at our Edendale site each
day, we need to ensure
we have a secure energy
supply that can meet
processing demands.
“Cost is also an important
consideration. Getting out
of coal requires significant
investment and we need
to choose the best option
that reduces emissions and
operational complexity while
also doing what’s best for our
farmer shareholders.”
Fonterra is partnering
with Meridian Energy for
the electricity supply who
generate electricity from
100% renewable resources –
wind, water and sun.
"Energy contributes around
40% of Aotearoa's total
gross emissions and process
heat makes up a third of this
country's energy use. So, it
makes sense for Meridian
to work with big industry
to switch energy sources to
clean energy alternatives”
says Meridian Chief
Executive Neal Barclay.
“We congratulate Fonterra
for taking this step given the
significance and scale of their
operations. Partnerships like
these are critical to helping
this country meet the target
of net zero carbon emissions
by 2050."
Work to reduce
emissions associated
with manufacturing:
• The Electric Boiler Project
is being co‑funded as
part of a previously
announced EECA (Energy
Efficiency and Conservation
Authority) partnership.
The partnership involves
Fonterra achieving
approximately 2.1 million
tonnes of earlier
CO₂e reductions by
undertaking a range of
decarbonisation projects at
its manufacturing sites.
• Fonterra expects to further
reduce its emissions
through a combination of
energy efficiency initiatives
and switching fuels at its
six manufacturing sites that
will still be using coal in
2024, and ultimately stop
using coal by 2037.
• Fonterra’s Waitoa
manufacturing site is now
using around 50% less coal
as its new wood biomass
boiler is operational.
This makes it the third
Fonterra manufacturing
site to reduce coal use in
2023. The biomass boiler
will reduce the site’s
annual emissions by at
least 48,000 tonnes of
CO₂e, the equivalent of
taking 20,000 cars off
New Zealand’s roads.
• Fonterra is in the process of
converting the coal boilers
at its Hautapu site to wood
pellets. Once complete this
year, the Hautapu site will
reduce its carbon emissions
by a forecast 15,785 tonnes
per annum ‑ the equivalent
of taking about 6,500 cars
off New Zealand’s roads.
• The Stirling wood biomass
boiler now has fully
renewable thermal 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.
• In 2020, the Te Awamutu
manufacturing site
converted its coal boiler
to wood pellets, reducing
the Co‑op’s national
coal consumption by
9%, reducing more than
84,000 tonnes of carbon
emissions per year – the
same as taking 32,000 cars
off the road.
• In 2018, the Brightwater
site near Nelson switched
to co‑firing biomass,
helping reduce CO₂e
emissions by 25%, or
the equivalent of taking
530 cars off the road.

Our Co-op
8
Fonterra launches a
unique hybrid emissions
reduction solution in
Palmerston North
Fonterra has recently
commissioned their first
high temperature heat pump
and solar thermal plant
combination at the Fonterra
Brands New Zealand
Palmerston North
manufacturing site, where
much of the fresh white
milk for the North Island
is produced.
The heat pump converts
excess heat from chillers
and compressors into a
heat source. This reduces
the natural gas required by
the site and is expected to
remove 495 tonnes CO₂e
annually – the equivalent of
taking 140 cars off the road.
This marks the fourth site
within a year to upgrade
energy infrastructure to
help Fonterra reach its
scope 1 and 2 target of 50%
emissions reduction by 2030
(from a 2018 baseline).
Fonterra Palmerston
North Site Manager
Graham Thomson says,
“We’re really excited about
this unique combination
of a commercial heat
pump and solar thermal
plant helping us reduce
our gas consumption and
emissions output.”
The project received
co‑funding from the Energy
Efficiency Conservation
Authority’s Government
Investment in Decarbonising
Industry (GIDI) fund and
will help inform future
decarbonisation projects
at Fonterra.
Further information
on Fonterra’s
decarbonisation efforts
We expect to reduce our
emissions further through
a combination of energy
efficiency initiatives and
switching fuels at our six
manufacturing sites that still
use coal and ultimately stop
using coal by 2037.
We’re in the process of
converting the coal boilers
at the Hautapu site to wood
pellets. Once complete this
year 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 Stirling wood
biomass boiler has been
commissioned, moving
the site to fully renewable
thermal 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 is now
operational and 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.

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

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)
DECEMBER
2023
DECEMBER

2022
MONTHLY
CHANGE
SEASON-
TO-DATE
2023/24
SEASON-
TO-DATE
2022/23
SEASON-
TO-DATE
CHANGE
Total Fonterra
New Zealand
176.6174.01.5%853.6854.8(0.1%)
North Island97.998.1(0.2%)508.8520.8(2.3%)
South Island78.875.93.8%344.9334.13.2%
Australia10.811. 0(1.3%)56.856.70.3%
2023/24 Season
Forecast Farmgate
Milk Price (FGMP)
Update
ANNOUNCEMENT
DATE
FORECAST
FGMP (NZD)
NZD/USD RATE AT
ANNOUNCEMENT
DATE
FORECAST
AVERAGE
CONVERSION
RATE FOR
2023/24
SEASON
PERCENTAGE
OF FORECAST
FOREIGN
EXCHANGE
EXPOSURE
FOR 2023/24
SEASON
HEDGED
PERCENTAGE
OF FOREIGN
EXCHANGE
OPTION
COVER
REMAINING
IN HEDGED
AMOUNT
RANGE MID-
POINT
7 December 2023$7.00‑
$8.00
$7.500.61440.613784%18%
9 October 2023$6.50‑
$8.00
$7.250.59680.609377%22%
As at the most recent update to the 2023/24 season forecast Farmgate Milk Price on
7 December 2023:
• Fonterra hedged approximately 84% of the full year forecast USD cash flows related to the
2024 season Farmgate Milk Price.
• Of that 84%, approximately 18% was hedged with foreign exchange options which have not yet
expired or been exercised.
• If the remaining 16% of the forecast USD cash flows were to be hedged at the 7 December
2023 spot rate of 0.6144, the average NZD/USD conversion rate for the 2024 season would
be 0.6137.
• Also shown for information are the equivalent measures at the date of the previous update to
the 2023/24 season Forecast Farmgate Milk Price on 9 October 2023.

WEIGHTED AVERAGE PRICEQUANTITY SOLD
APR 
MAR 
JAN OCT 
FEB 
JUL 
AUG 
MAY 
SEP 
NOV 
DEC 
JUN 

,
,

,

,

,
,

,

,
,
,
WEIGHTED AVERAGE PRICE USDMT
QUANTITY SOLD  MT
11

Supplementary Information
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 JANUARY 2024)
YEAR-TO-DATE

(FROM 1 AUGUST 2023)
Quantity Sold on GDT
(Winning MT)
23,097368,572
Change in Quantity Sold on GDT
over same period last year
(24.4%)10.2%
Weighted Average Product Price
(USD/MT)
3,5313,197
Change in Weighted Average
Product Price over same period
last year
3.5%(14.2%)
Change in Weighted Average
Product Price from previous event
3.4%–
Fonterra GDT results
This chart shows Fonterra
GDT prices and volumes over
the past 12 months.

12
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.