Global Dairy Update June 2024

• Fonterra marks 10-year milestones in China Foodservice
growth story.
1
Global Dairy
UPDATE
• Australia and EU monthly production
increased. New Zealand and US monthly
production decreased.
• Australia, EU and US monthly exports
increased. New Zealand monthly
exports decreased.
• Asia and Middle East & Africa monthly imports
increased. Latin America and China monthly
imports decreased.
• Fonterra's New Zealand collections for the
season ended 31 May were 1,470.9 million
kgMS, 0.6% below last season.
• Fonterra’s Australia collections in May were
8.6 million kgMS, 1.0% ahead of May last
season. Season-to-date collections were
100.2 million kgMS, 1.0% ahead of last season.
• Chinese Premier visits Fonterra’s headquarters in Auckland.
Key Dates
31 July 2024
End of FY24 Financial Year
September 2024
FY24 Annual Results Announcement
JUNE 2024

%%%
%%%%
%
Change for April 2024
compared to April 2023
Change for April 2024
compared April 2023
Change for April 2024
compared to April 2023
Change for April 2024
compared to April 2023
Change for the 12 months
to April 2024
Change for the 12 months
to April 2024
Change for the 12 months
to April 2024
Change for the 12 months
to April 2024
0.42.54.1
2.80.20.3
1.1
0.2
2
OUR MARKETS
Global Production
Australia and EU
monthly production
increased. New Zealand
and US monthly
production decreased
New Zealand milk
production was down
4.1% on a litres basis (down
2.6% on milk solids basis) for
April compared to the same
period the year prior.
The decrease was due
to unfavourable weather
conditions affecting pasture
growth alongside farmers
drying off in preparation for
next season.
New Zealand milk
production for the
12 months to April was
down 0.2% on the previous
comparable period.
Fonterra New Zealand
collections are reported for
May, see page 5 for details.
Australia milk
production increased 2.5%
in April compared to the
same period the year prior.
The production increase was
due to favourable weather
conditions and ongoing
availability of irrigation water.
Australia milk production
for the 12 months to April
was up 2.8% on the previous
comparable period.
Fonterra collections in
Australia are reported for
May, see page 5 for details.
EU milk production¹
increased 1.1% in April
compared to the same
period the year prior.
The production increase
was driven by growth in
Eastern European countries,
offsetting production
declines in Western Europe
due to unfavourable
weather conditions.
EU milk production for
the 12 months to April was
up 0.2% on the previous
comparable period.
US milk production
decreased 0.4 % in April
compared to the same period
the year prior.
The decrease was mainly
driven by a reduction in
herd sizes, and the ongoing
outbreak of Highly Pathogenic
Avian Influenza (HPAI)
in Texas.
US milk production for
the 12 months to April was
down 0.3 % on the previous
comparable period.
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, EU and US
monthly exports increased.
New Zealand monthly
exports decreased
Total New Zealand dairy
exports decreased 2.4%, or
8,426 MT, in May compared
to the same period the
year prior.
The decrease was mainly
due to ongoing lower
export volumes of WMP,
fluid milk products and
cream to China. This was
partially offset by increased
export volumes of cheese to
Southeast Asia and the UK.
Exports for the 12 months
to May were up 2.8%, or
96,971 MT, on the previous
comparable period.
This was mainly due to
higher overall export
volumes of WMP, SMP and
fluid milk products.
EU dairy exports
increased 5.5%, or 29,434  MT,
in April compared to the
same period the year prior.
The increase was mainly
due higher export volumes
of SMP to the Middle East
and North Africa, alongside
higher export volumes of
whey and infant formula to
Southeast Asia.
Exports for the 12 months
to April were down 1.6%, or
105,249 MT, on the previous
comparable period.
This was mainly due to
relatively lower export
volumes of infant formula,
fluid milk products and
cultured products.
US dairy exports
increased 7.5%, or 16,629  MT,
in April compared to the
same period the year prior.
The increase was mainly due
ongoing high export volumes
of cheese with shipments
to Mexico at an all-time
high, alongside increased
export volumes of fluid milk
products and butter.
Exports for the 12 months
to April were down 5.3%, or
153,336 MT, on the previous
comparable period.
This was mainly due to lower
export volumes of whey
powder and SMP as demand
decreased from China
and Mexico.
Australia dairy exports
increased 26.2%, or
11, 728 MT, in April compared
to the same period the
year prior.
The increase in exports
was mainly due to clearing
additional inventory held this
year compared to prior year.
Exports for the 12 months
to April were down 9.3%, or
67,896 MT, on the previous
comparable period.
This was mainly due to
the disconnect between
Australia’s domestic milk
price and global commodity
price, making Australian
exports less competitive.
NEW ZEALANDAUSTRALIAEUROPEAN UNIONUSA
%%%
%%
%
%
Change for May 2024
compared to May 2023
Change for April 2024
compared to April 2023
Change for April 2024
compared to April 2023
Change for April 2024
compared to April 2023
Change for the 12 months
to April 2024
Change for the 12 months
to April 2024
Change for the 12 months
to May 2024
Change for the 12 months
to April 2024
7.5
9.3
2.4
1.6
5.3
26.2
5.5
2.8
%

To view a chart that
illustrates year-on-year
changes in imports –
4
OUR MARKETS
Global Imports
Asia, Latin America
and Middle East &
Africa monthly imports
increased. China monthly
imports decreased
Latin America dairy
import volumes¹ increased
14.6%, or 28,879 MT, in
April compared to the same
period the year prior.
The increase was mainly
due to ongoing high import
volumes of cheese by Mexico
and WMP by Cuba.
Imports for the 12 months
to April were up 7.6%, or
178,470 MT, on the previous
comparable period.
This was mainly due to
ongoing higher import
volumes of cheese and WMP
by Mexico and Brazil.
Asia (excluding China)
dairy import volumes¹
increased 28.7%, or 111,025  MT,
in April compared to the same
period the year prior.
The increase was mainly due
to higher import volumes of
whey by Indonesia, and SMP
and fluid milk products by the
Philippines.
Imports for the 12 months
to April were up 3.8%, or
187,099 MT, on the previous
comparable period.
This was mainly due to higher
import volumes of fluid
milk products and WMP by
Southeast Asia.
Middle East and Africa
dairy import volumes¹
increased 12.6%, or
58,088 MT, in April compared
to the same period the
year prior.
The increase was driven
by continued high import
volumes of SMP by Saudi
Arabia, and WMP by Kuwait
and Nigeria.
Imports for the 12 months
to April were up 6.1%, or
335,172 MT, on the previous
comparable period.
This was mainly due to
higher volumes of SMP
by Saudi Arabia, WMP to
UAE, and cultured products
by Iraq.
China dairy import
volumes decreased by
18.6%, or 53,782 MT, in May
compared to the same
period the year prior.
The decrease was driven
by lower import volumes
of WMP, SMP and fluid
milk products.
Imports for the 12 months
to May were down 9.5%, or
303,127 MT, on the previous
comparable period.
This was mainly due to the
ongoing decline in import
demand of infant formula
due to China prioritising
local brands.
LATIN AMERICAASIAMIDDLE EAST & AFRICACHINA
1 Estimates are included for those countries that have not reported data.
%%%%
%%
Change for April 2024
compared to April 2023
Change for May 2024
compared to May 2023
Change for April 2024
compared to April 2023
Change for April 2024
compared to April 2023
Change for the 12 months
to April 2024
Change for the 12 months
to April 2024
Change for the 12 months
to April 2024
18.628.714.6
3.86.1
%
Change for the 12 months
to May 2024
9.5
12.6
7.6
%

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
compared to prior season
For the 2023/24 Season
compared to previous season
For the 2023/24 Season
compared to previous season
For the 2023/24 Season
compared to previous season
Change for May 2024
compared to May 2023
Change for May 2024
compared to May 2023
Change for May 2024
compared to May 2023
Change for May 2024
compared to May 2023
1.07.33.75.6
1.03.33.50.6
VOLUME M LITRESDAY
JUNJULAUGSEPOCTNOVDECJANFEBMARAPRMAY










5
OUR MARKETS
Fonterra Milk Collections
NEW ZEALANDNORTH ISLANDSOUTH ISLANDAUSTRALIA
New Zealand Milk Collections
Fonterra's Australia
collections in May were
8.6 million kgMS, 1.0% ahead
of May last season.
The increase was mainly
due to favourable weather
conditions and availability
of irrigation water, resulting
in increased pasture quality
and availability.
Season-to-date collections
are 100.2 million kgMS, 1.0%
above last season.
North Island milk
collections in May were
35.5 million kgMS, 3.7%
below May last season.
The decrease was due to
unfavourable conditions
causing farmers to rely
on supplementary feed
for their herds. This was
partially offset by some
areas experiencing increased
pasture growth.
The 2023/24 season milk
collections were finalised
at 832.0 million kgMS, 3.5%
below last season.
South Island milk
collections in May were
36.1 million kgMS, 7.3%
below May last season.
The decrease was mainly
due to unfavourable weather
conditions, with dry and
cold regions causing some
farmers to dry-off earlier
than expected.
The 2023/24 season milk
collections were finalised
at 638.9 million kgMS, 3.3%
above last season.
Fonterra's New Zealand
collections for May were
71. 6 million kgMS, 5.6%
below May last season.
The decrease was mainly
due to unfavourable pasture
quality impacting collections
in the North Island, in
addition to dry weather
conditions across the
South Island leading to
lower collections.
The 2023/24 season milk
collections were finalised at
1,470.9 million kgMS, 0.6%
below last season.
%
%
%
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%
%%
%
%
To view more information,
including a snapshot of the
rolling year-to-date results –
%
6
GDT PRICE INDEXNZDUSD SPOT RATE
JUN AUG NOV MAR JUN OCT APR JAN 


,
,
,
.
.
.

.

.

PRICE INDEX
NZD  USD
OUR MARKETS
Fonterra Global Dairy Trade Results
Fonterra GDT sales
by destination:
Dairy commodity prices and New Zealand
dollar trend
Deliberations over the timing and degree of US interest rate
cuts continues to set sentiment and drive direction across
most financial markets. While US economic activity has eased
somewhat, the labour market remains resilient and the pace
of reductions in underlying inflation slowed, prompting the
US Federal Reserve to adjust their interest rate guidance –
their mantra being ‘higher for longer’. The NZD/USD exchange
rate consolidated between 61 and 62 US cents.
Fonterra GDT results at
trading event 358
18 June 2024:
The next trading event will be held on 2 July 2024. Visit www.globaldairytrade.info for more information.
Change in Fonterra’s
weighted average product
price from previous event
0.4
Fonterra’s weighted
average product price

(USD/MT)
4,004
USD
Fonterra product quantity
sold on GDT
000’ MT
14.9
NORTH ASIA (INCLUDING CHINA)
SOUTH EAST ASIA
MIDDLE EAST AND AFRICA
LATIN AMERICA
OTHER
USD 3,387/MT
2.3
WMP
USD 7,386/MT
8.1
BUTTER
USD 4,205/MT
1.0
CHEDDAR
USD 2,878/MT
3.8
SMP
USD 7,317/MT
1.4
AMF
14,1853
MT
LATEST AUCTION
545,198
MT
FINANCIAL
YEAR‑TO‑DATE

7
Our Performance
Fonterra marks
10‑year milestones
in China Foodservice
growth story
As two sites at the heart
of Fonterra’s Foodservice
business celebrate their
10th anniversaries, the
Co-operative announced
it will open its sixth
application centre to meet
growing demand.
In 2014, Fonterra opened its
Waitoa UHT manufacturing
site in the Waikato, which
specialises in commercially
producing UHT cream
products for growing
markets. Waitoa UHT is
a large employer for the
region, growing from
80 employees in 2014 to
more than 200 in 2024.
In the same year, Fonterra
opened its first-ever Fonterra
Application Centre (FAC) in
Shanghai, with the centres
playing an important role
in the Co-op’s Foodservice
business by enabling
Fonterra to partner with
local customers and develop
product applications
designed to meet local
consumer tastes and trends.
Fonterra is pleased to
confirm it will open its sixth
application centre in China
later this year, located in
Wuhan, with construction
now underway. This
application centre will add
to those in Beijing, Chengdu,
Guangzhou, Shanghai
and Shenzhen.
CEO Miles Hurrell says
Fonterra’s Greater China
Foodservice business is a key
part of the Co-op’s value-
add strategy, with the cream
products produced at Waitoa
UHT contributing strongly to
this success.
"The formula for our
foodservice whipping cream
was developed by our expert
team at Fonterra's Research
and Development Centre in
Palmerston North and is an
excellent example of how we
use innovation to add value
to farmers’ milk.
“This product alone is used
in approximately 400 million
beverages and 260 million
cakes in Chinese bakery
stores each year and we’ve
seen a continued increase in
demand since 2014.
“Our application centres
play a pivotal role in driving
innovation and tailoring
Fonterra’s Foodservice
offerings to the tastes,
culture and trends of the
area in which they’re located.
They include different
spaces and equipment to
enable technical experts and
experienced chefs to test
and develop new products,
often in collaboration
with customers.
“The addition of a new
application centre in China
signals the continued growth
we expect to see from our
Greater China Foodservice
business and this will likely
lead to further growth in
demand for our foodservice
cream products, which we
are well set up to cater for,”
says Mr Hurrell.
In FY23, Fonterra’s Greater
China Foodservice business
reported $2.2 billion in
revenue with gross margins
of 17.9%. Fonterra’s CEO of
Greater China Teh-han Chow
says the high-quality product
coupled with the local
expertise the application
centres provide gives
Fonterra a competitive edge
in China.
Fonterra’s Foodservice
business sells to businesses
that cater for out of home
consumption (bakeries, cafes
and global Quick Service
Restaurant chains). Fonterra
partners with Foodservice
customers to test and
develop products for their
kitchens, using its network of
FACs and professional chefs.
“While we already have a
strong Foodservice business
in China, we’re looking to
continue to grow. By working
closely with customers to
create product applications
that help their businesses
to thrive, we can all benefit
from the opportunities the
China market presents.”
Fonterra’s Foodservice
business is also growing in
Southeast Asia, particularly
in the bakery channel, with
the emergence of specialty
bakery and lifestyle cafes
across the region. Like China,
in-market chefs assist the
team in developing new
local applications based on
consumer needs.
Fonterra considers the needs
of each customer and market
and work to their needs.
There is a strong connection
between category, markets,
FRDC, technical excellence
and operations, who all
link together to deliver
high-value, innovative dairy
products.

Our Co‑op
8
Chinese Premier visits
Fonterra’s Auckland
headquarters
As part of an official
visit to New Zealand,
Premier Li Qiang visited the
Fonterra Centre in Auckland
on 15 June accompanied by
New Zealand Prime Minister
Christopher Luxon, Trade
Minister Todd McClay,
as well as a host of
other officials.
Fonterra's CEO Miles
Hurrell kicked off the
proceedings with a speech
that was warmly received,
talking about the Co-op’s
strong relationship with our
partners in China.
“China’s economic growth
has gone hand-in-hand
with increasing demand
for our high-quality dairy
ingredients and growth of
our Foodservice business
in China,” says Hurrell.
“Underpinning Fonterra
and our customers' shared
successes is the strong
relationship between our
two countries.”
During the event, Fonterra
showcased the Co-op’s
business in China with a
range of its Foodservice
and Ingredients products
on display.
Hurrell says Fonterra
continues to invest in
innovation in China’s
dairy sector.
“We have five Fonterra
application centres in
China, helping to develop
new dairy products and
supporting our customers
adapt to market trends.”
The Co-op will open its sixth
application centre in Wuhan
this year.
“Our application centres
play a pivotal role in driving
innovation and tailoring
Fonterra’s Foodservice
offerings to the tastes,
culture and trends of
the area in which they’re
located,” says Hurrell.
The application centres
include different spaces
and equipment to enable
technical experts and
experienced chefs to test
and develop new products,
often in collaboration
with customers.
From left: President Fonterra Greater China Teh-han Chow; Fonterra
CEO Miles Hurrall; Premier Li Qiang; Prime Minister Christopher Luxon;
Fonterra Chair Peter McBride; Trade Minister Todd McClay, Managing
Director Co-operative Affairs Mike Cronin

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 New Zealand, EU, US and Australia to April.
NOTE: Data for EU, US and Australia to April; New Zealand to May.
NOTE: Data for Asia, Middle East & Africa, Latin America to April; China to May.
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)
M AY
2024
M AY

2023
MONTHLY
CHANGE
SEASON-
TO-DATE
2023/24
SEASON-
TO-DATE
2022/23
SEASON-
TO-DATE
CHANGE
Total Fonterra
New Zealand
71. 675.9(5.6%)1,470.91,480.6(0.6%)
North Island35.536.9(3.7%)832.0862.1(3.5%)
South Island36.139.0(7.3%)638.9618.53.3%
Australia8.68.51.0%100.299.31.0%
2023/24 season
forecast Farmgate
Milk Price (FGMP)
update
2024/25 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
29 May 2024$7.70-
$7.90
$7.800.61440.612699%12%
21 March 2024$7.50-
$8.10
$7.800.60820.612592%17%
As at the most recent update to the 2023/24 season forecast Farmgate Milk Price dated 29 May 2024:
• Fonterra had hedged approximately 99% of the full year forecast USD cash flows related to the
2023/24 season Farmgate Milk Price.
• Of that 99%, approximately 12% was hedged with foreign exchange options which had not yet
expired or been exercised.
• If the remaining 1% of the forecast USD cash flows were to be hedged at the 29 May 2024 spot rate
of 0.6144, the average NZD/USD conversion rate for the 2024 season would be 0.6126.
• 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 21 March 2024.
ANNOUNCEMENT
DATE
FORECAST
FGMP (NZD)
NZD/USD RATE AT
ANNOUNCEMENT
DATE
FORECAST
AVERAGE
CONVERSION
RATE FOR
2024/25
SEASON
PERCENTAGE
OF FORECAST
FOREIGN
EXCHANGE
EXPOSURE
FOR 2024/25
SEASON
HEDGED
PERCENTAGE
OF FOREIGN
EXCHANGE
OPTION
COVER
REMAINING
IN HEDGED
AMOUNT
RANGE MID-
POINT
29 May 2024$7.25-
$8.75
$8.000.61440.613049%11%
For the opening forecast Farmgate Milk Price for the 2024/25 season announced on 29 May 2024:
• Fonterra had hedged approximately 49% of the full year forecast USD cash flows related to the
2024/25 season Farmgate Milk Price.
• Of that 49%, approximately 11% was hedged with foreign exchange options which had not yet expired
or been exercised.
• If the remaining 51% of the forecast USD cash flows were to be hedged at the 29 May 2024 spot rate
of 0.6144, the average NZD/USD conversion rate for the 2024 season would be 0.6130.

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
(18 JUNE 2024)
YEAR-TO-DATE

(FROM 1 AUGUST 2023)
Quantity Sold on GDT
(Winning MT)
14,853545,198
Change in Quantity Sold on GDT
over same period last year
(21.8%)(3.9%)
Weighted Average Product Price
(USD/MT)
4,0043,385
Change in Weighted Average
Product Price over same period
last year
13.2%(6.5%)
Change in Weighted Average
Product Price from previous event
0.4%–
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.