Global Dairy Update January 2025

• Fonterra announces its largest decarbonisation project
to date.
1
Global Dairy
UPDATE
• New Zealand and EU monthly production
increased. Australia and US monthly
production decreased.
• Australia and EU monthly exports
increased. New Zealand and US monthly
exports decreased.
• Latin America, Middle East & Africa and China
monthly imports increased. Asia monthly
imports decreased.
• Fonterra New Zealand’s collections for
December were 178.5 million kgMS, 1.0%
above December last season. Season-to-date
collections are 882.5 million kgMS, 3.4% above
last season.
• Fonterra Australia’s collections in December
were 11.0 million kgMS, 1.5% above December
last season. Season-to-date collections are
57.8 million kgMS, 1.7% above last season.
• Co-op teams join with farmers to mark 10 years of
Farm Source.
Key Dates
December 2024 to February 2025
Application period to supply Fonterra
20 March 2025
FY25 Interim Results Announcement
May 2025
FY25 Q3 Business Update
JANUARY 2025

%%%
%%%%
%
Change for December 2024
compared to December 2023
Change for December 2024
compared December 2023
Change for December 2024
compared to December 2023
Change for November 2024
compared to November 2023
Change for the 12 months
to December 2024
Change for the 12 months
to December 2024
Change for the 12 months
to December 2024
Change for the 12 months
to November 2024
0.51.01.4
2.40.60.2
1.8
1.5
2
OUR MARKETS
Global Production
New Zealand and EU
monthly production
increased. Australia
and US monthly
production decreased
New Zealand milk
production increased 1.4%
in December compared
to the same period the
year prior.
The production increase
was mainly due to strong
North Island collections
following favourable weather
conditions in the second half
of the month while South
Island collections were flat.
New Zealand milk
production for the
12 months to December
was up 1.5% on the previous
comparable period.
Fonterra New Zealand
collections are reported
for December, see page 5
for details.
Australia milk
production decreased
1.0% in December compared
to the same period the
year prior.
The production decrease
was mainly due to Western
Victoria volumes still
recovering following a dry
start to the season. This
was partially offset by
favourable conditions in
Northern Victoria.
Australia milk production for
the 12 months to December
was up 2.4% on the previous
comparable period.
Fonterra collections in
Australia are reported
for December, see page 5
for details.
EU milk production¹
increased 1.8% in November
compared to the same
period the year prior.
The production increase
was driven by Ireland due
to strong milk prices and
the prior comparable period
being the lowest since
2017. This was partially
offset by lower production
in Germany compared
to the prior period, as it
recovers from the impact of
Bluetongue disease.
EU milk production for the
12 months to November was
up 0.6% on the previous
comparable period.
US milk production
decreased 0.5 % in December
compared to the same period
the year prior.
The production decrease
was mainly driven by the
impact of the Avian flu
through California. This was
partially offset by increasing
herd sizes compared to the
prior year.
US milk production for the
12 months to December was
down 0.2% 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 and EU monthly
exports increased.
New Zealand and US
monthly exports decreased
New Zealand dairy
exports decreased 4.0%,
or 15,564 MT, in November
compared to the same
period last year.
The decrease was mainly due
to lower export volumes of
WMP, SMP and AMF. This
was partially offset by higher
export volumes of cheese,
fluid milk products and MPC.
Exports for the 12 months to
November were down 0.4%,
or 13,468 MT, on the previous
comparable period.
This was mainly due to lower
export volumes of AMF and
butter, partially offset by
higher export volumes of
fluid milk products and MPC.
EU dairy exports¹
increased 11. 8%, or 63,493  MT,
November compared to the
same period the year prior.
The increase was mainly due
to a higher exports of whey
into China as the region
continues to expand their
market share and exporters
front loading shipments
in response to port strike
concerns and changes in the
US administration.
Exports for the 12 months to
November were up 1.0%, or
70,605 MT, on the previous
comparable period.
This was mainly due to higher
exports of fluid milk products.
This was partially offset
by lower exports of SMP,
cultured products and WMP
to China and Middle East.
US dairy exports
decreased 7.7%, or 17,714  MT,
in November compared
to the same period the
year prior.
The decrease was mainly due
to a lower export volumes to
of SMP to Mexico and overall
lower export volumes to
China and Southeast Asia.
Exports for the 12 months to
November were up 1.1%, or
30,268 MT, on the previous
comparable period.
This was mainly due to
consecutive volume growth
for cheese exports and
higher export volumes
of butter.
Australia dairy exports
increased 12.0%, or 7,407 MT,
in November compared to the
same period the year prior.
The increase was mainly due
to lower domestic demand
for dairy which has resulted
in higher volumes available
for exports.
Exports for the 12 months to
November were up 9.4%, or
60,356 MT, on the previous
comparable period.
This was mainly due to higher
export volumes of cheese and
SMP. Increase in production
has also led to more
exportable surplus.
NEW ZEALANDAUSTRALIAEUROPEAN UNIONUSA
%%%
%%
%
%
Change for November 2024
compared to November 2023
Change for November 2024
compared to November 2023
Change for November 2024
compared to November 2023
Change for November 2024
compared to November 2023
Change for the 12 months
to November 2024
Change for the 12 months
to November 2024
Change for the 12 months
to November 2024
Change for the 12 months
to November 2024
7.7
9.4
4.0
1.0
1.1
12.0
11.8
0.4
%
1 Excludes UK.

To view a chart that
illustrates year-on-year
changes in imports –
4
OUR MARKETS
Global Imports
Latin America, Middle
East & Africa and
China monthly imports
increased. Asia monthly
imports decreased
Latin America dairy
import volumes¹ increased
2.1%, or 4,523 MT, in
November compared to the
same period the year prior.
The increase was mainly due
to higher import volumes of
cheese by Mexico and Brazil.
Imports for the 12 months to
November were up 5.5%, or
137,587 MT, on the previous
comparable period.
This was mainly due to
continuous high import
volumes of cheese and fluid
milk products by Mexico.
Asia (excluding China)
dairy import volumes¹
decreased 6.3%, or 28,876  MT,
in November compared
to the same period the
year prior.
The decrease was mainly due
to lower import volumes of
cheese by Korea and whey
by Pakistan.
Imports for the 12 months to
November were up 5.8%, or
287,303 MT, on the previous
comparable period.
This was mainly due to higher
import volumes of fluid milk
products by the Philippines
and SMP and WMP by the
Philippines and Vietnam.
This was partially offset
by lower import volumes
by Pakistan as they face
economic uncertainty.
Middle East and Africa
dairy import volumes¹
increased 1.3%, or 6,841 MT,
in November compared
to the same period the
year prior.
The increase was driven by
higher imports of SMP by
Algeria and Egypt. This was
partially offset by lower
imports of WMP by Algeria.
Imports for the 12 months to
November were up 1.5%, or
86,442 MT, on the previous
comparable period.
This was mainly due to
higher import volumes of
SMP and whey by Egypt and
Algeria, and cheese by UAE.
This was partially offset by
lower import volumes of
WMP by Algeria.
China dairy import
volumes increased by
18.6%, or 44,445 MT, in
December compared to the
same period the year prior.
The increase was driven
by higher import volumes
of WMP and SMP as local
supply growth slows.
Imports for the 12 months
to December were down
8.8%, or 272,025 MT, on the
previous comparable period.
This was mainly due to
the continuing recovery
from lower import volumes
of SMP, WMP, fluid milk
products and infant formula.
LATIN AMERICAASIAMIDDLE EAST & AFRICACHINA
1 Estimates are included for those countries that have not reported data.
%%%%
%%
Change for November 2024
compared to November 2023
Change for December 2024
compared to December 2023
Change for November 2024
compared to November 2023
Change for November 2024
compared to November 2023
Change for the 12 months
to November 2024
Change for the 12 months
to November 2024
Change for the 12 months
to November 2024
18.66.32.1
5.81.5
%
Change for the 12 months
to December 2024
8.8
1.3
5.5
%

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
compared to prior season
S
eason-to-date 1 June to 31 December
compared to prior season
Season-to-date 1 June to 31 December
compared to prior season
Season-to-date 1 June to 31 December
compared to prior season
Change for December 2024
compared to December 2023
Change for December 2024
compared to December 2023
Change for December 2024
compared to December 2023
Change for December 2024
compared to December 2023
1.50.1
1.1
1.91.0
1.74.93.4
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 11.0 million kgMS,
1.5% above December last
season.
The increase was mainly
due to continued strong
production in Northern
Victoria with feed availability
and access to irrigation water
relatively unconstrained.
Season-to-date collections
are 57.8 million kgMS,
1.7 % above last season.
North Island milk
collections in December
were 99.8 million kgMS,
1.9% above December
last season.
The increase was mainly due
weather conditions across
the region contributing
to strong pasture growth
in the second half of the
month after the start having
drier conditions.
Season-to-date collections
are 533.8 million kgMS,
4.9% above last season.
South Island milk
collections in December
were 78.7 million kgMS,
0.1% below December
last season.
The decrease was mainly
due to dry conditions in
most parts of the region
partially offset by heavy
rain pour later in the month
providing sharp recovery in
pasture growth.
Season-to-date collections
are 348.7 million kgMS,
1.1 % above last season.
Fonterra's New Zealand
collections for December
were 178.5 million kgMS,
1.0% above December
last season.
The increase was mainly due
to favourable weather and
soil conditions in the North
Island while the South Island
saw relatively flat collections.
Season-to-date collections
are 882.5 million kgMS,
3.4% above last season.
%%
%%
Forecast milk collections for the
2024/25 season
1, 4 9 8M
kgMS
Forecast Farmgate Milk Price for
the 2024/25 season
NZD
per
kgMS
9.50-
10.50
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
Exceptional US economic growth, coupled with the
inauguration of Donald Trump as the President of the
United States, has driven both general investor risk appetite
and the USD higher as the strong US dollar trend since
September continues. Market expects the Reserve Bank
of New Zealand to lower the Official Cash Rate by 50bps
in February. The combination of these resulted in a further
decline from 58.5 US cents to 56 US cents.
Fonterra GDT results at
trading event 372
21 January 2025:
The next trading event will be held on 4 February 2025. Visit www.globaldairytrade.info for more information.
Change in Fonterra’s
weighted average product
price from previous event
3.2
Fonterra’s weighted
average product price

(USD/MT)
4,299
USD
Fonterra product quantity
sold on GDT
000’ MT
24.2
NORTH ASIA (INCLUDING CHINA)
SOUTH EAST ASIA
MIDDLE EAST AND AFRICA
LATIN AMERICA
OTHER
USD 6,616/MT
7.7
AMF
USD 3,983/MT
4.8
WMP
USD 4,846/MT
2.5
CHEDDAR
USD 2,818/MT
3.0
SMP
USD 6,918/MT
2.5
BUTTER
24,203
MT
LATEST AUCTION
392,784
MT
FINANCIAL
YEAR‑TO‑DATE

7
Our Performance
Fonterra announces its
largest decarbonisation
project to date
Fonterra is set to convert
two coal boilers to wood
pellets at its Clandeboye
site in South Canterbury,
a crucial step in Fonterra's
commitment to exit coal
by 2037.
The $64 million investment
will cut the Co-operative’s
overall manufacturing
emissions by nine per
cent with reductions
totalling 155,000 tonnes
of CO2e each year, the
equivalent of removing
more than 64,000 cars
from New Zealand roads
each year.
Fonterra Chief Operating
Officer Anna Palairet
says the project marks a
significant milestone in
Fonterra’s sustainability
journey as it works towards a
50.4% reduction in absolute
Scope 1&2 emissions by
2030, from a 2018 baseline.
"This conversion project
at Clandeboye is another
demonstration of our
Co-op’s commitment to
sustainability and climate
action and follows successful
boiler conversions at
our Te Awamutu, and
Hautapu sites.
"In making our largest
decarbonisation investment
to date, we're reducing our
environmental impact –
while securing operational
resilience. This project
represents a significant
milestone in our journey
towards a coal-free future."
Fonterra’s Site Operations
Manager – Cheese and
Protein, Conrad Harle echoes
this sentiment believing the
investment will drive fuel
diversity in the South Island
by providing the demand
signals to establish wood
pellet supply chains in
the region.
"The move to wood pellets
for the Clandeboye site is
a great thing for the South
Island as it will play a role
in diversifying the country’s
renewable energy options
while strengthening fuel
optionality at the site.
"The team at Clandeboye
are both proud and
excited to play a role in
the establishment of these
regional supply chains that
give added resilience and
further options for future
decarbonisation investments
at our other sites, primarily
Darfield, Studholme, Takaka,
and Edendale."
The conversion is co-funded
as part of a previously
announced EECA (Energy
Efficiency and Conservation
Authority) partnership. The
partnership agreement
includes the Co-op achieving
approximately 1.2 million
tonnes of CO2 cumulative
reductions from its coal
reduction activities this
decade, enabling the Co-op
to lift its 2030 target from
a 30% to a 50% absolute
reduction by 2030.
EECA Chief Executive,
Dr Marcos Pelenur, says
it is encouraging to see
Fonterra continue to
progress their emissions
reduction programme.
"It is a milestone that once
again highlights the central
role of biofuel in the clean
energy space and the use
of clever technology in
increasing energy efficiency."
The conversion of the
two boilers is scheduled
to be completed and
operational by September
2025. Plans to transition
the site’s remaining boilers
onto renewable energy
will continue as part of
the Co-operative's wider
decarbonisation plans.
The site has recently
completed another
decarbonisation project with
the installation of a heat
recovery system in its lactose
plant back in February 2024.
This was the first project
co-funded under EECA for
the Co-operative focusing on
energy efficiency. The new
system allows the recovery
of high-grade heat from the
lactose plant's equipment,
saving the site 2.5 tonnes
of steam per hour and
decreasing annual carbon
emissions by around 3,000
tonnes – the equivalent of
removing around 1,250 cars
from New Zealand roads.
To view the Clandeboye Fact
Sheet –

8
Our Performance
Further details on the
Co-op’s work to reduce
emissions associated
with manufacturing:
Coal free in manufacturing
operations in the
North Island
(November 2024)
With the turning off of
the Co-op's Waitoa site’s
last coal boiler, the Co-op
announced it was now
out of coal in the North
Island. Work continues to
transition the five sites in
the South Island that still
use coal.
Edendale electrode boiler
(October 2024)
The Co-op’s first electrode
boiler powered up
in October this year,
generating steam from
electricity, and cutting
the site’s annual overall
emissions by 20% or
around 47,500 tonnes – the
equivalent of removing
around 20,000 cars from
New Zealand roads.
Hautapu boiler conversion
(August 2024)
Conversion from coal
to wood pellets, with an
expected annual emissions
reduction of around
12,000 tonnes – the
equivalent of removing
around 6,500 cars from
New Zealand roads.
Clandeboye heat
recovery project
(February 2024)
The new heat recovery
system in the Lactose
plant aims to decrease
annual carbon emissions by
around 3,000 tonnes – the
equivalent of removing
around 1,250 cars from
New Zealand roads.
Waitoa wood
biomass boiler
(October 2024)
The new boiler at Waitoa
has halved coal usage at
the site, cutting emissions
by around 46,000 tonnes
annually – the equivalent of
removing around 20,000
cars from New Zealand
roads.
Whareroa heat pumps
(September 2023)
Installation of New
Zealand’s largest heat
pumps as part of a
refrigeration upgrade,
decreasing annual carbon
emissions by around
9,100 tonnes – the
equivalent of removing
around 3,800 cars from
New Zealand roads.
Stirling biomass boiler
(August 2023): Stirling's
wood biomass boiler has
reduced annual carbon
emissions by around
18,500 tonnes – the
equivalent of removing
around 7,700 cars from
New Zealand roads – and
is the Co-op's first site
running on 100% renewable
thermal energy.
Te Awamutu boiler
conversion
(August 2020)
Converted the coal boiler to
use wood pellets, reducing
coal use and emissions by
around 84,000 tonnes –
the equivalent of removing
around 35,000 cars from
New Zealand roads.
Brightwater biomass
co‑firing
(September 2018)
Moved to co-firing
wood biomass, reducing
overall annual site carbon
emissions by around 2,400
tonnes – the equivalent of
removing around 530 cars
from New Zealand roads.

Our Co-op
9
Co-op teams join with
farmers to mark 10 years
of Farm Source
This year marks 10 years
since the creation of
Farm Source, which is a
fully-owned subsidiary of
Fonterra that serves as
the farmer support arm of
the Co operative.
Farm Source is much more
than a retail network,
with teams on the ground
including sustainable
dairying advisors, milk
quality managers, vets and
other specialists who get
alongside farmers to help
them continue to lead the
way in sustainable, efficient
dairy farming.
This includes offering a range
of tools and services that are
delivered in a personalised
way – from tailored Farm
Insights Reports and Farm
Environment Plans through
to digital apps, data sharing
solutions and deferred
payment options.
An 0800-service centre
team is also on hand to
support farmers 24/7, and
they’ve received more than
one million calls over the
past decade.
Meanwhile there are
65 Farm Source stores across
the country that are aptly
named “Our Place”. They
often hold “Pie Day Fridays”
to help bring together
farmers, Farm Source staff
and local communities, and
this recently turned into
“Cake Day Friday” to help
mark the 10-year milestone.
Farm Source Group Director
Anne Douglas says hundreds
of farmers turned out across
the country.
“It was fantastic to see
so many of our farmer
owners and other valued
customers join us in store,”
says Douglas.
“I was in Waiuku and the
farmers I met there were
delighted to be part of
the celebration.”
Douglas joined Fonterra
around the time that Farm
Source was launched in
2014. Until that point, the
Co-operative’s store network
had been known as RD1.
The shift to Farm Source
was about doing things
differently to connect
farmers with the full
strength of their Co-op.
For example, leveraging
Fonterra’s purchasing power
and partnerships to drive
down costs and extending
the breadth and depth of
the on-farm support options
available. The Farm Source
Rewards programme was
also enhanced, and since
2014 customers have earned
more than $125 million
through the programme.
“Overall, we're here to make
sure farmers get the right
support to build sustainable,
productive, efficient, and
effective farming operations
for generations to come,”
says Douglas.
Former Farm Source
Marketing Manager Helena
Jannetta, who is now
based offshore with the
Co-operative, says working
on the transition from RD1
to Farm Source was one of
her favourite projects to be
involved with.
“Working directly with
farmers and learning more
about their businesses,
struggles and joys really
brought home that unique
feeling that working for
a co-operative brings,”
says Jannetta.
Previous leaders of
Farm Source who have
helped shaped the business
include CEO Miles Hurrell
as well as Richard Allen,
who recently joined
Fonterra’s management
team as President Global
Markets Ingredients.
Farm Source is also
proud to support rural
communities across
New Zealand, partnering
with organisations like Rural
Support Trust and supporting
wellbeing initiatives like Farm
Strong, Surfing for Farmers
and the Farm Without
Harm programme.
Looking ahead, Fonterra
will continue to adapt what
it offers farmers to help
meet their evolving needs.
Delivering the strongest
offering is a key pillar of the
Co-op’s revised strategy
announced in September
2024. This includes
managing the overall
business well to earn the
maximum sustainable return,
and offering farmers the best
possible support, tools, and
services so they can focus
on their own business and
producing world-class milk.

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

11

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
2024
DECEMBER
2023
MONTHLY
CHANGE
SEASON-
TO-DATE
2024/25
SEASON-
TO-DATE
2023/24
SEASON-
TO-DATE
CHANGE
Total Fonterra
New Zealand
178.5176.61.0%882.5853.63.4%
North Island99.897.91.9%533.8508.84.9%
South Island78.778.8(0.1%)348.7344.91.1%
Australia11. 010.81.5%57.856.81.7%
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
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
05 Dec 2024$9.50-
$10.50
$10.000.58600.601886%16%
11 Nov 2024$9.00-
$10.0
$9.500.59670.605281%18%
As at the most recent update to the 2024/25 season forecast Farmgate Milk Price on 5 December 2024:
• Fonterra had hedged approximately 86% of the full year forecast USD cash flows related to the
2024/25 season Farmgate Milk Price.
• Of that 86%, approximately 16% was hedged with foreign exchange options which had not yet
expired or been exercised.
• If the remaining 14% of the forecast USD cash flows were to be hedged at the 5 December 2024 spot
rate of 0.5860, the average NZD/USD conversion rate for the 2025 season would be 0.6018.
• Also shown for information are the equivalent measures at the date of the previous forecast of the
2024/25 season Farmgate Milk Price on 11 November.

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
12

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
(21 JANUARY 2025)
YEAR-TO-DATE

(FROM 1 AUGUST 2024)
Quantity Sold on GDT
(Winning MT)
24,203392,784
Change in Quantity Sold on GDT
over same period last year
4.8%6.6%
Weighted Average Product Price
(USD/MT)
4,2994,014
Change in Weighted Average
Product Price over same period
last year
21.8%25.6%
Change in Weighted Average
Product Price from previous event
3.2%$–
Fonterra GDT results
This chart shows Fonterra
GDT prices and volumes over
the past 12 months.

13
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.