Global Dairy Update March 2025

• On 20 March, Fonterra
announced its 2025
Interim Results.
1
Global Dairy
UPDATE
• US monthly production increased.
New Zealand, Australia and EU monthly
production decreased.
• New Zealand, Australia and US
monthly exports increased. EU monthly
exports decreased.
• Asia and China monthly imports increased.
Latin America and Middle East & Africa
monthly imports decreased.
• Fonterra New Zealand’s collections for
February were 133.7 million kgMS, 2.3%
below February last season. Season-to-date
collections are 1,181.9 million kgMS, 2.9%
above last season.
• Fonterra Australia’s collections in February
were 8.2 million kgMS, 1.9% below February
last season. Season-to-date collections are
75.8 million kgMS, 1.3% above last season.
• Fonterra’s cream rises to the top during the Prime Minister’s
Vietnam trip.
Key Dates
May 2025
FY25 Q3 Business Update
1 June 2025
Start of the 2025/26 Season
31 July 2025
End of FY25 Financial Year
MARCH 2025
For further details,
visit our website –

%%%
%%%%
%
Change for February 2025
compared to February 2024
Change for January 2025
compared January 2024
Change for February 2025
compared to February 2024
Change for December 2024
compared to December 2023
Change for the 12 months
to February 2025
Change for the 12 months
to January 2025
Change for the 12 months
to February 2025
Change for the 12 months
to December 2024
0.14.82.6
0.80.60.1
0.1
1.3
2
OUR MARKETS
Global Production
US monthly production
increased. New Zealand,
Australia and EU monthly
production decreased
New Zealand milk
production decreased
2.6% in February compared
to the same period the
year prior.
Adjusting for the leap year,
February 2025 production
was up 0.9% on last year.
Drier weather conditions
across most regions affected
milk production in February.
New Zealand milk
production for the
12 months to February was
up 1.3% on the previous
comparable period.
Fonterra New Zealand
collections are reported
for February, see page 5
for details.
Australia milk
production decreased
4.8% in February compared
to the same period the
year prior.
Adjusting for the leap year,
February 2025 production
was down 1.4% on last year.
Hot and dry conditions
throughout Victoria affected
milk production in February.
Australia milk production for
the 12 months to February
was up 0.8 % on the
previous comparable period.
Fonterra collections in
Australia are reported
for February, see page 5
for details.
EU milk production¹
decreased 0.1% in December
compared to the same
period the year prior.
The December decrease
was mainly driven by
lower production in France
and Germany as they
recover from the impact of
Bluetongue Disease.
EU milk production for the
12 months to December were
up 0.6% on the previous
comparable period.
US milk production
increased 0.1% in January
compared to the same period
the year prior.
The production increase was
mainly due to increasing
herd sizes, and supported
by expanded processing
capacity in Texas, Kansas, and
South Dakota.
US milk production for the
12 months to January was
down 0.1% on the previous
comparable period.
The production decrease
was mainly due to reduced
efficiency, milk per cow falling
for the third month in a row
compared to the same period
the year prior.
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
New Zealand, Australia
and US monthly exports
increased. EU monthly
exports decreased
New Zealand dairy
exports increased 3.2%,
or 10,568 MT, in February
compared to the same
period the year prior.
The increase was mainly due
to higher export volumes of
cheese and butter, partially
offset by lower export
volumes of WMP.
Exports for the 12 months to
February were down 1.1%, or
40,567 MT, on the previous
comparable period.
The decrease was mainly
due to lower export volumes
of WMP, AMF, and SMP,
partially offset by higher
export volumes of MPC and
MPI, and cheese.
EU dairy exports¹
decreased 0.6%, or 3,118 MT,
in January compared to the
same period the year prior.
The January decrease was
mainly due to lower export
volumes of fluid milk
products from Germany
following issues caused by
foot and mouth disease.
Exports for the 12 months
to January were up 3.1%, or
258,993 MT, on the previous
comparable period.
The increase was mainly due
to higher export volumes
of fluid milk products
from Ireland.
US dairy exports
increased 2.5%, or 5,280  MT,
in January compared to the
same period the year prior.
The increase was mainly
due to higher prices
reducing domestic demand
and a year-on-year rise in
January's production.
Exports for the 12 months
to January were up 1.9%, or
52,239 MT, on the previous
comparable period.
The increase was mainly due
to volume growth for cheese
exports for 11 consecutive
months, partially offset
by lower export volumes
of SMP.
Australia dairy exports
increased 20.2%, or
9,266 MT, in January
compared to the same
period the year prior.
The increase was mainly
due to lower domestic
demand, which has resulted
in higher volumes available
for exports.
Exports for the 12 months
to January were up 11.8%, or
75,595 MT, on the previous
comparable period.
The increase was mainly
due to higher export
volumes of SMP and cheese,
partially offset by lower
export volumes of fluid
milk products.
NEW ZEALANDAUSTRALIAEUROPEAN UNIONUSA
%%%
%%
%
%
Change for February 2025
compared to February 2024
Change for January 2025
compared to January 2024
Change for January 2025
compared January 2024
Change for January 2025
compared January 2024
Change for the 12 months
to January 2025
Change for the 12 months
to January 2025
Change for the 12 months
to February 2025
Change for the 12 months
to January 2025
2.5
11.8
3.2
3.1
1.9
20.2
0.6
1.1
%
1 Excludes UK.

To view a chart that
illustrates year-on-year
changes in imports –
4
%
OUR MARKETS
Global Imports
Asia and China monthly
imports increased.
Latin America and Middle
East & Africa monthly
imports decreased
Latin America dairy
import volumes¹
decreased 1.4%, or 2,850  MT,
in January compared to the
same period the year prior.
The decrease was mainly
due to lower import volumes
of fluid milk products by
Guatemala and Chile,
partially offset by higher
import volumes of cheese
by Brazil.
Imports for the 12 months
to January were up 3.8%, or
98,076 MT, on the previous
comparable period.
The increase was mainly due
to higher import volumes of
cheese by Mexico and Brazil.
Asia (excluding China)
dairy import volumes¹
increased 10.2%, or
41,718 MT, in January
compared to the same
period the year prior.
The increase was mainly due
to higher import volumes of
whey powder by Indonesia
and Malaysia, partially offset
by lower import volumes of
SMP by Indonesia.
Imports for the 12 months
to January were up 4.8%, or
240,317 MT, on the previous
comparable period.
This was mainly due to
higher import volumes
of fluid milk products by
the Philippines.
Middle East and
Africa dairy import
volumes¹ decreased 17.7%,
or 91,102 MT, in January
compared to the same
period the year prior.
The decrease was mainly due
to lower import volumes of
fluid milk products by the
United Arab Emirates.
Imports for the 12 months to
January were down 0.5%, or
30,117 MT, on the previous
comparable period.
The decrease was mainly due
to lower import volumes of
fluid milk products by Libya,
partially offset by higher
import volumes of SMP by
Egypt and Algeria.
China dairy import
volumes increased by
16.6%, or 36,282 MT, in
February compared to the
same period the year prior.
The increase was mainly due
to higher import volumes of
whey powder from Germany
and fat-based products from
New Zealand, following
reduced local production
and a sharp increase in
butter demand.
Imports for the 12 months to
February were down 5.9%, or
197,244 MT, on the previous
comparable period.
The decrease was mainly
due to lower import volumes
of SMP, WMP and fluid
milk products.
LATIN AMERICAASIAMIDDLE EAST & AFRICACHINA
1 Estimates are included for those countries that have not reported data.
%%%%
%
Change for January 2025
compared January 2024
Change for February 2025
compared to February 2024
Change for January 2025
compared January 2024
Change for January 2025
compared January 2024
Change for the 12 months
to January 2025
Change for the 12 months
to January 2025
Change for the 12 months
to January 2025
16.610.21.4
4.80.5
%
Change for the 12 months
to February 2025
5.9
17.7
3.8
%

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 28 February
compared to prior season
Season-to-date 1 June to 28 February
compared to prior season
Season-to-date 1 June to 28 February
compared to prior season
Season-to-date 1 June to 28 February
compared to prior season
Change for February 2025
compared to February 2024
Change for February 2025
compared to February 2024
Change for February 2025
compared to February 2024
Change for February 2025
compared to February 2024
1.90.7
1.2
3.92.3
1.34.02.9
VOLUME M LITRESDAY
JUNJULAUGSEPOCTNOVDECJANFEBMARAPRMAY












5
OUR MARKETS
Fonterra Milk Collections
NEW ZEALANDNORTH ISLANDSOUTH ISLANDAUSTRALIA
New Zealand Milk Collections
Fonterra's Australia
collections in February were
8.2 million kgMS, 1.9% below
February last season.
Adjusting for the leap year,
collections were up 1.6% on
last year.
Hot weather and increasing
water costs are putting
pressure on volumes, and feed
availability is tightening.
Season-to-date collections are
75.8 million kgMS, 1.3 % above
last season.
North Island milk
collections in February were
69.2million kgMS, 3.9% lower
than February last season.
Adjusting for the leap year,
February 2025 collections
were 0.4% down on last
year. Hotter temperatures
and below average rainfall
in most regions affected
collections in February.
Season-to-date collections
are 693.3 million kgMS,
4.0% above last season.
South Island milk
collections in February
were 64.6 million kgMS,
0.7% lower than February
last season.
Adjusting for the leap year,
February 2025 collections
were up 2.9% on last year
despite drier weather
conditions this year.
Season-to-date collections
are 488.6 million kgMS,
1.2% above last season.
Fonterra's New Zealand
collections for February
were 133.7 million kgMS,
2.3% below February
last season.
For the first time since June
2024, monthly collections
fell below the previous
season. Adjusting for the
leap year, February 2025
collections were up 1.1% on
last year.
Season-to-date collections
are 1,181.9 million kgMS,
2.9% above last season.
%%
%%
Forecast milk collections for the
2024/25 season
1, 5 10M
kgMS
Forecast Farmgate Milk Price for
the 2024/25 season
NZD
per
kgMS
9.70-
10.30
Outlook for Fonterra
in New Zealand
For the period 1 June 2024
to 31 January 2025, off-GDT
sales have contributed
approximately six cents per
kgMS to the Farmgate Milk
Price for the 2024/25 season.

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

 
,
,
, 
.

. 
.
.
.
PRICE INDEX
NZD  USD
OUR MARKETS
Fonterra Global Dairy Trade Results
Fonterra GDT sales
by destination:
Dairy commodity prices and New Zealand
dollar trend
The US Federal Reserve held interest rates steady on 19 March,
while the Reserve Bank of New Zealand cut the OCR in
February with more cuts priced in this calendar year. In the
US, ‘stagflation’ fears are upsetting investor risk sentiment,
depressing equity values and has halted appreciation of the
USD, which is currently at 57 US cents to the NZD.
Fonterra GDT results at
trading event 376
18 March 2025:
The next trading event will be held on 1 April 2025. Visit www.globaldairytrade.info for more information.
Change in Fonterra’s
weighted average product
price from previous event
0.8
Fonterra’s weighted
average product price

(USD/MT)
4,512
USD
Fonterra product quantity
sold on GDT
000’ MT
15.6
NORTH ASIA (INCLUDING CHINA)
SOUTH EAST ASIA
MIDDLE EAST AND AFRICA
LATIN AMERICA
OTHER
USD 6,561/MT
1.8
AMF
USD 4,976/MT
1.2
CHEDDAR
USD 4,044/MT
0.3
WMP
USD 7,575/MT
0.4
BUTTER
USD 2,914/MT
1.1
SMP
15,554
MT
LATEST AUCTION
464,837
MT
FINANCIAL
YEAR‑TO‑DATE

7
Our Performance
Fonterra’s momentum
delivers strong FY25
interim earnings
and dividend
On 20 March 2025, Fonterra
announced a positive FY25
interim result as the Co-op
continues to make good
progress on implementing
its strategy.
Fonterra has reported a
half year Profit after Tax of
$729 million, earnings of
44 cents per share and a
decision to pay an interim
dividend of 22 cents per
share, alongside a 2024/25
season forecast Farmgate
Milk Price midpoint of
$10.00 per kgMS.
Fonterra CEO Miles Hurrell
says it’s pleasing to be able
to deliver these results for
farmer shareholders and
unit holders.
“We’re focusing on driving
value which includes
delivering strong financial
performance while achieving
the highest sustainable
Farmgate Milk Price," says
Mr Hurrell.
“At the same time, we’re
looking ahead as we
implement our strategy and
continue to invest for the
future. We have commenced
projects to unlock
manufacturing production
capacity for our Ingredients
and Foodservice channels,
with site works now
underway at Studholme for
high-value protein capacity
and at Edendale for a new
UHT cream plant.
“We’re also continuing to
invest to future proof our
operations and supply
chain network, with
work underway on a new
Whareroa coolstore and
plans for decarbonisation
projects at Clandeboye,
Edendale, Edgecumbe and
Whareroa to secure energy
supply and reduce the
Co-op’s emissions.
“As we focus on delivering
the strongest farmer offering,
we have announced new
funding for farmers with
lower emissions milk and
expanded the Fixed Milk
Price programme that
farmers can use to get
more certainty around the
Farmgate Milk Price, says
Mr Hurrell.”
Farmgate Milk Price
Fonterra is committed
to delivering the highest
sustainable Farmgate Milk
Price to farmers. For the
current season, the forecast
Farmgate Milk Price range is
narrowing from $9.50-$10.50
per kgMS to $9.70-$10.30,
with the midpoint holding at
$10.00 per kgMS.
“We’re seeing good demand
for our quality products,
and our teams have worked
hard to optimise our product
portfolio to capture value
from the market conditions,
leaving us well contracted for
the season.
“We have also optimised
the current season’s
Advance Rate Schedule to
get cash to farmers sooner,
underpinned by our balance
sheet strength.
“In terms of milk flows, our
forecast milk collections for
the year are up 2.7% on this
time last year to 1,510 million
kgMS. This follows
favourable pasture growth
across most of New Zealand
earlier in the season, noting
many parts of the country
are currently experiencing
very dry conditions,” says
Mr Hurrell.
Business performance
Fonterra's strong half
year performance was
underpinned by an optimised
product mix, designed to
capture value across the
Co-op’s sales channels.
“Our robust first half
performance saw earnings
growing alongside the
strong Farmgate Milk Price,
reflecting the strength of our
core business.
“Ingredients channel
performance has been a
highlight this half, with
sales volume down 3.9%
and operating profit up
$229 million to $696 million,
reflecting better margins and
improved product mix.
“Our Foodservice channel
has seen sales volume
growth of 8.3% this half,
with Q2 gross margins
significantly up on Q1
as pricing adjusted to
the higher milk price.
Foodservice operating profit
for the half was a healthy
$230 million, compared
to the record high of
$342 million in FY24 when
input costs were much lower.
“The Consumer channel saw
good sales volumes, up 8.5%,
and margin growth, despite
the higher Farmgate Milk
Price, with operating profit
largely flat on prior period at
$173 million.
“Meanwhile, our IT & Digital
transformation project,
a once in a generation
replacement of the Co-op’s
Enterprise Resource Planning
software, is progressing well
and remains on budget. The
project is expected to cost
$450-500 million across six
years and annual expenditure
reaches its peak in FY25 at
$130 million. This spend is
included in our previously
announced earnings forecast
and despite this spend, our
FY25 results remain strong,”
says Mr Hurrell.
Outlook
We have increased Fonterra’s
FY25 full year forecast
earnings range to 55-75 cents
per share¹, which reflects
the underlying strength of
our core business as well
as the resilience in our
Consumer channel.
“The Co-op is in a great
shape, with milk collections,
the forecast Farmgate
Milk Price and earnings
performance all up on this
time last year.
“As we look to the balance
of the year ahead, we’re
focused on maintaining this
momentum in performance,
while progressing delivery
of our strategy, including
the dual-track Consumer
divestment process which
is on track as planned,” says
Mr Hurrell.
1 This forecast earnings range reflects Fonterra's underlying earnings before any deduction for forecast costs associated with the Consumer divestment. When the Fonterra Board considers
the full year dividend for FY25, it will consider, amongst other factors, the nature of the underlying earnings and whether it is appropriate to include any costs associated with asset sales in
the financial year.

Our Co-op
8
Fonterra’s cream rises
to the top during
the Prime Minister’s
Vietnam trip
Prime Minister Christopher
Luxon’s cooking skills
were put to the test when
visiting Fonterra’s office in
Ho Chi Minh City during his
recent trip to Vietnam.
Relishing the opportunity
to promote New Zealand’s
food and beverage products,
the Prime Minister donned
an apron and whipped up
a local treat with a taste of
Kiwi – snails covered with
New Zealand cream.
Representing Fonterra on the
official visit, Simon Tucker,
Group Director of Global
External Affairs, says there’s
plenty of opportunities
in Vietnam for the
Co-operative.
"Vietnam is a fast-growing
market for our Foodservice
creams, with sales almost
doubling in value between
2022 and 2024,” says Tucker
who accompanied the
Prime Minister as part of the
business delegation.
Plant-based oils have
traditionally been used
in Vietnamese cuisine,
but nowadays cream and
other dairy products are
being used more often in
local dishes.
"Besides Western-style
dishes, Vietnamese bakeries
and restaurants are using our
cream, butter and cheese in
a lot of the local favourites
including sauté sweet snail
with salted egg cream sauce,"
Tucker says.
As Vietnam's foodservice
industry continues to evolve,
demand is increasing for
ingredients such as dairy that
enhance the taste, texture
and quality.
"The rapid growth in demand
for our cream reflects the
growing appetite for dairy
in this market. Our UHT
cream plant currently being
constructed at our Edendale
site in Southland will help
meet this rising demand
in Vietnam and across
the region."
Fonterra also signed a
strategic memorandum
of understanding with
MM Mega Market during the
Prime Minister’s visit.
Tucker says the MOU with
the large food distributor will
expand Fonterra’s presence
in the market.
"Our Foodservice business
is already a trusted partner
to over 3,500 foodservice
operators in Vietnam,
delivering 10,000 metric ton
of dairy products every year.
"The partnership with
MM Mega Market will
expand access for Fonterra’s
high-quality products and
dairy solutions to more than
10,000 professional kitchens
across the country," he adds.

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 to December; US to January; New Zealand and Australia to February.
NOTE: Data for EU, US and Australia to January; New Zealand to February..
NOTE: Data for Asia, Middle East & Africa, Latin America to January; China to February.
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)
FEBRUARY
2025
FEBRUARY
2024
MONTHLY
CHANGE
SEASON-
TO-DATE
2024/25
SEASON-
TO-DATE
2023/24
SEASON-
TO-DATE
CHANGE
Total Fonterra
New Zealand
133.7136.9(2.3%)1,181.91,149.02.9%
North Island69.271. 9(3.9%)693.3666.44.0%
South Island64.665.0(0.7%)488.6482.61.2%
Australia8.28.3(1.9%)75.874.81.3%
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
20 Mar 2025$9.70-
$10.30
$10.000.58090.598193%11%
05 Dec 2024$9.50-
$10.50
$10.000.58600.601886%16%
As at the most recent update to the 2024/25 season forecast Farmgate Milk Price on 20 March 2025:
• Fonterra had hedged approximately 93% of the full year forecast USD cash flows related to the
2024/25 season Farmgate Milk Price.
• Of that 93%, approximately 11% was hedged with foreign exchange options which had not yet expired
or been exercised.
• If the remaining 7% of the forecast USD cash flows were to be hedged at the 20 March 2025 spot
rate of 0.5809, the average NZD/USD conversion rate for the 2025 season would be 0.5981.
• Also shown for information are the equivalent measures at the date of the previous forecast of the
2024/25 season Farmgate Milk Price on 5 December 2024.

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 MARCH 2025)
YEAR-TO-DATE

(FROM 1 AUGUST 2024)
Quantity Sold on GDT
(Winning MT)
15,554464,837
Change in Quantity Sold on GDT
over same period last year
(13.5%)3.2%
Weighted Average Product Price
(USD/MT)
4,5124,094
Change in Weighted Average
Product Price over same period
last year
26.1%24.7%
Change in Weighted Average
Product Price from previous event
0.8%–
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.