Global Dairy Update October 2025

• Fonterra invests $75 million to expand
butter production
1
Global Dairy
UPDATE
• New Zealand, EU and US monthly
production increased. Australia monthly
production decreased
• New Zealand, Australia and US monthly
exports increased. EU monthly
exports decreased
• Asia, Latin America, Middle East & Africa
and China monthly imports decreased
• Fonterra's New Zealand collections
for September were 179.0 million
kgMS, 2.8% above September last
season. Season‑to‑date collections
are 316.3 million kgMS, 3.0% above
last season
• Fonterra’s Australia collections for
September were 10.6 million kgMS,
3.8% above September last season.
Season‑to‑date collections are
23.4 million kgMS, 3.0% above last season
• Fonterra farmers approve Consumer sale with
strong support
Key Dates
4 December 2025
FY26 Q1 Business Update
11 December 2025
Fonterra Co‑operative Group
Annual Meeting
15 December 2025
Fonterra Shareholders' Fund
Annual Meeting
OCTOBER 2025

Change for September 2025
compared to September 2024
Change for August 2025
compared to August 2024
Change for September 2025
compared to September 2024
Change for August 2025
compared to August 2024
Change for the 12 months
to September 2025
Change for the 12 months
to August 2025
Change for the 12 months
to September 2025
Change for the 12 months
to August 2025
3.32.5
1.80.11.2
2.7
1.8
0.5
2
OUR MARKETS
Global Production
New Zealand, EU
and US monthly
production increased.
Australia monthly
production decreased
New Zealand milk
production increased
2.5% in September
compared to the same
period the year prior.
The increase was mainly
due to favourable
weather conditions
and a strong milk price
incentivising farmers to
maximise production.
New Zealand milk
production for
the 12 months to
September was up
1.8% on the previous
comparable period.
Fonterra New Zealand
collections are reported
for September, see page 5
for details.
Australia milk
production decreased
0.5% in September
compared to the same
period the year prior.
The decrease was mainly
due to lower collections
in Victoria, down 3.2%
year‑on‑year for
September. The decrease
was partially offset by
higher collections in
Queensland and New
South Wales.
Australia milk production
for the 12 months to
September was 1.8%
down on the previous
comparable period.
Fonterra collections in
Australia are reported for
September, see page 5
for details.
EU milk production1
increased 2.7 % in August
compared to the same
period the year prior.
The increase was mainly
due to higher production
in France, Ireland, Germany
and the Netherlands,
partially offset by lower
collections in Portugal,
which was 36.7 million
kgMS, or 25.6%, lower than
last year.
The increase, in part, is
likely due to the impacts
of Bluetongue disease,
particularly in Western
Europe on the comparable
period's collections.
EU milk production for the
12 months to August was
up 0.1% on the previous
comparable period.
US milk production
increased 3.3% in August
compared to the same
period the year prior.
The increase was mainly
due to larger herd sizes and
higher yields. Production
increased year‑on‑year
for 19 of the 24 major
milk‑producing states, with
Kansas up 20% on August
last year.
The higher collections were
partially offset by lower
production in Washington,
which decreased 7.4%,
as the state's herd
size decreased 21,000
compared to last year.
US milk production for the
12 months to August was
1.2% up on the previous
comparable period.
NEW ZEALANDAUSTRALIAEUROPEAN UNIONUSA
To view a chart that
illustrates year‑on‑year
changes in production –
1 Excludes UK.
%%%
%%%%
%

3
OUR MARKETS
Global Exports
New Zealand, Australia,
and US monthly exports
increased. EU monthly
exports decreased
New Zealand dairy
exports increased 10.9%,
or 19,977 MT, in September
compared to the same
period the year prior.
The increase was mainly
due to higher export
volumes of WMP and
fluid milk products, which
increased 14.4% and 21.7%,
or, 8,470 MT and 7,649 M T,
respectively, partially offset
by lower export volumes
o f A M F.
Exports for the 12 months
to September were
up 1.6%, or 56,304 M T,
on the previous
comparable period.
The increase was mainly
due to higher exports of
cheese, partially offset by
lower export volumes of
WMP and SMP.
EU dairy exports1
decreased 0.8%, or
5,050MT, in July compared
to the same period the
year prior.
The decrease was mainly
due to lower export
volumes of whey powder
from France and fluid
milk products from the
Netherlands and Germany,
partially offset by higher
export volumes of SMP.
Exports for the 12 months
to July were up 0.2%, or
9,884 MT, on the previous
comparable period.
The increase was mainly
due to higher export
volumes WPC and WPI
from Ireland.
US dairy exports
increased 8.6%, or
20,960 MT, in July
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 SMP.
Exports for the 12 months
to July were up 2.4%, or
67,447 MT, on the previous
comparable period.
The increase was mainly
due to strong growth
of cheese exports, and
butter, which is up 94%,
or 26,147 MT, for the
12 months year‑on‑year.
The increase is partially
offset by lower export
volumes of SMP.
Australia dairy exports
increased 5.8%, or
2,700 MT, in August
compared to the same
period the year prior.
The increase was mainly
due to higher volumes of
fluid milk products, with
exports to China increasing
80% compared to last
August. The increase was
partially offset by lower
export volumes of butter.
Exports for the
12 months to August
were down 0.9%, or
6,070 MT, on the previous
comparable period.
The decrease was mainly
due to lower exports of
whey powder, partially
offset by higher export
volumes of cheese.
NEW ZEALANDAUSTRALIAEUROPEAN UNIONUSA
%%%%
%%
To view a chart that
illustrates year‑on‑year
changes in exports –
%
%
Change for September 2025
compared to September 2024
Change for July 2025
compared to July 2024
Change for August 2025
compared to August 2024
Change for July 2025
compared to July 2024
Change for the 12 months
to July 2025
Change for the 12 months
to August 2025
Change for the 12 months
to September 2025
Change for the 12 months
to July 2025
8.6
0.9
10.9
0.2
2.4
5.8
0.8
1.6
1 Excludes UK.

4
OUR MARKETS
Global Imports
Asia, Latin America,
Middle East & Africa
and China monthly
imports decreased
Latin America dairy
import volumes
decreased 2.9%, or
6,545 MT, in August
compared to the same
period the year prior.
The decrease was mainly
due to lower imports of
WMP by Peru, Brazil and
Venezuela and of SMP by
Mexico, partially offset by
higher import volumes of
whey powder.
Imports for the 12 months
to August were up 4.2%, or
107,376 MT, on the previous
comparable period.
The increase was mainly
due to higher volumes
of SMP and cheese by
Mexico, partially offset by
lower import volumes of
WMP by Guatemala and
AMF by Mexico.
Asia (excluding China)
dairy import volumes
decreased 8.0%, or
39,950 MT, in August
compared to the same
period the year prior.
The decrease was
mainly due to lower
import WMP and whey
powder by Indonesia and
the Philippines.
Imports for the 12 months
to August were up 1.5%, or
83,093 MT, on the previous
comparable period.
The increase was mainly
due to higher import
volumes of cheese by the
Philippines and Indonesia,
and MPC and MPI by
the Philippines, Japan
and Thailand.
Middle East and Africa
dairy import volumes1
decreased 4.0%, or
17,604 MT, in August
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, partially
offset by higher import
volumes of SMP.
Imports for the 12 months
to August were down
4.8%, or 261,023 M T,
on the previous
comparable period.
The decrease was mainly
due to lower import
volumes of fluid milk
products by the United
Arab Emirates and WMP by
Saudi Arabia and Algeria.
China dairy import
volumes decreased
by 1.1%, or 2,159 MT, in
September compared
to the same period the
year prior.
The decrease was mainly
due to lower import
volumes of fluid milk
products, partially offset
by higher volumes of WMP
and butter.
Imports for the 12 months
to September were
up 4.0%, or 113,617 M T,
on the previous
comparable period.
The increase was mainly
due to higher import
volumes of whey powder
and WMP, partially offset
by lower volumes of fluid
milk products and SMP.
LATIN AMERICAASIAMIDDLE EAST & AFRICACHINA
1 Estimates are included for those countries that have not reported data.
%%%%
%%
Change for August 2025
compared to August 2024
Change for September 2025
compared to September 2024
Change for August 2025
compared to August 2024
Change for August 2025
compared to August 2024
Change for the 12 months
to August 2025
Change for the 12 months
to August 2025
Change for the 12 months
to August 2025
To view a chart that
illustrates year‑on‑year
changes in imports –
1.18.02.9
1.54.8
%
Change for the 12 months to
September 2025
4.0
4.0
4.2
%

To view a table that shows
detailed milk collections in
New Zealand and Australia
compared to the previous
season‑
Season-to-date 1 Jul–30 Sept
compared to prior season
Season-to-date 1 Jun–30 Sept
compared to prior season
Season-to-date 1 Jun–30 Sept
compared to prior season
Season-to-date 1 Jun–30 Sept
compared to prior season
Increase for September 2025
compared to September 2024
Increase for September 2025
compared to September 2024
Increase for September 2025
compared to September 2024
Increase for September 2025
compared to September 2024
3.82.2
2.3
3.12.8
3.03.33.0
VOLUME (M LITRES/DAY)
JUNJULAUGSEPOCTNOVDECJANFEBMARAPRMAY
2024/25
2023/242022/23
0
10
20
30
40
50
60
70
80
5
OUR MARKETS
Fonterra Milk Collections
NEW ZEALANDNORTH ISLANDSOUTH ISLANDAUSTRALIA
New Zealand Milk Collections
Fonterra's Australia
collections
in September
were 10.6 million kgMS,
3.8% higher than
September last season.
The increase was mainly
due to favourable weather
conditions. Consistent
rainfall across major
producing regions is
helping to replenish fodder
reserves, with some areas
of Tasmania receiving the
highest September rainfall
in over 20 years.
Some areas in Western
Victoria are still recovering
from drought conditions,
however increased rainfall
compared to last year is
reducing the impact.
Season‑to ‑date collections
for Fonterra Australia are
23.4 million kgMS, 3.0%
above last season.
North Island milk
collections in September
were 107.9 million kgMS,
3.1% higher than
September last season.
The increase was mainly
due to favourable weather
conditions across the
North Island.
Soil moisture was high
across most regions, being
at or near field capacity for
all areas except for some
drier areas in Hawkes Bay.
Temperatures throughout
the North Island were
slightly cooler than
historical averages,
which supported higher
milk yields.
Season‑to ‑date collections
are 212.1 million kgMS,
3.3% above last season.
South Island milk
collections in September
were 71.1 million kgMS, 2.2%
lower than September
last season.
The increase was mainly
due to favourable pasture
conditions, with lower
soil moisture across
most regions due to
below average rainfall
limiting pasture damage
from livestock.
Sunlight levels were
well above average for
most of the South Island,
with temperatures at
or slightly above the
historical average in milk
producing regions.
Season‑to ‑date collections
are 104.2 million kgMS,
2.3% above last season.
Fonterra's New
Zealand collections
for September were
179.0 million kgMS,
2.8% above September
last season.
The increase was mainly
due to favourable
weather conditions across
the country.
In addition to favourable
weather, a strong milk
price and high margins
are incentivising farmers
to maintain higher
production levels.
Season‑to ‑date collections
are 316.3 million kgMS,
3.0% above last season.
%%
%%%%
%%

%
%%
%
%
To view more
information, including
a snapshot of the rolling
year‑to ‑date results –
%
6
GDT PRICE INDEXNZD/USD SPOT RATE
OCT 23OCT 24FEB 25JUN 25OCT 25JUN 24FEB 24
800
950
1,100
1,400
1,250
0.54
0.57
0.60
0.63
0.66
PRICE INDEX
NZD / USD
OUR MARKETS
Fonterra Global Dairy Trade Results
Fonterra GDT sales
by destination:
Dairy commodity prices and New Zealand
dollar trend
NZ Dollar weakness extended to below 57 US cents
following the Reserve Bank of New Zealand’s (RBNZ)
‘super‑sized’ reduction in the Official Cash Rate in October,
to 2.50% – a response to the weak growth numbers for
the second quarter of 2025. Investors anticipate further
monetary policy accommodation from the RBNZ will be
forthcoming in November to support economic recovery,
however, proportionate easing is expected from the US
Federal Reserve and so support for the NZD/USD exchange
rate has emerged at these lower levels.
Fonterra GDT results
at trading event 391
21 October 2025:
The next trading event will be held on 4 November 2025. Visit www.globaldairytrade.info for more information.
Change in Fonterra’s
weighted average
product price from
previous event
1.6
Fonterra’s weighted
average product price

(USD/MT)
3,914
USD
Fonterra product
quantity sold on GDT
000’ MT
38.9
NORTH ASIA (INCLUDING CHINA)
SOUTH EAST ASIA
MIDDLE EAST AND AFRICA
LATIN AMERICA
OTHER
USD 3,609/MT
2.3
WMP
USD 7,038/MT
1.8
AMF
USD 2,568/MT
1.8
SMP
USD 6,711/MT
0.3
BUTTER
USD 4,758/MT
2.1
CHEDDAR
38,913
MT
LATEST AUCTION
223,032
MT
FINANCIAL
YEAR‑TO‑DATE

7
Our Performance
Fonterra invests
$75 million to expand
butter production
Fonterra has announced
a $75 million investment
to expand butter
production at its
Clandeboye site in South
Canterbury, as part of
the Co‑op's next phase
of strategic investments
signalled in its FY25
Annual Results.
CEO Miles Hurrell says
Fonterra plans to invest
up to $1 billion over
the next three to four
years in projects that
will generate further
value for farmers
and drive operational
cost efficiencies.
“This investment
increases our production
of a high‑value product
and improves our
product mix by adding
value to milkfat,”
Hurrell says.
The investment will
enable construction
of a new butter line at
Clandeboye, expanding
the site’s current butter
production capacity
by up to 50,000 MT
per annum.
The new butter line
at Clandeboye will
expand the Co‑op's
capacity to produce
a range of butter
formats, tailored for
both global ingredients
customers and
professional kitchens.
The plant will be capable
of making products that
meet diverse market
requirements, including
Halal and Kosher
certifications, supporting
Fonterra's growth in key
international markets.
Hurrell says global
demand for butter
continues to grow,
and this investment
positions the Co‑op
to better serve
customers worldwide.
Fonterra Chief Operating
Officer Anna Palairet
says the expansion of
the Clandeboye site also
strengthens Fonterra’s
network in the South
Island by improving
flexibility and resilience.
“This investment is part
of Fonterra’s broader
strategic asset roadmap
supporting long‑term
growth in high‑value
dairy categories. The
expansion will create
16 new jobs at the site,
supporting the local
economy,” Palairet says.
Construction at the
Clandeboye site begins
in December 2025,
with commissioning
scheduled for early
2027 and first product
expected off the line in
April 2027.
This is Fonterra’s third
investment in the
South Island in the past
year, following:
• A $75 million investment
in an advanced protein
hub at Studholme to
be sold through the
Co‑op's Ingredients
business, catering to
the fast‑growing high
protein market for
medical and sports
nutrition. Construction
is expected to be
complete in early 2026.
• The $150 million
investment in a new
UHT cream plant at
Edendale to unlock
additional capacity
for high value product
sold through Fonterra’s
Foodservice business.
Construction is
expected to be
complete in the second
half of 2026.
Fonterra also recently
invested $64 million
at Clandeboye for the
conversion of two coal
boilers to wood pellets, a
crucial step in the Co‑op's
commitment to exit coal
by 2037. The conversion
was completed in
August 2025.

Our Co-op
8
Fonterra farmers
approve Consumer
sale with
strong support
Fonterra’s farmer
shareholders have given
the go‑ahead for the
Co‑operative to sell its
global Consumer and
associated businesses,
Mainland Group, to
Lactalis for $4.22 billion,
with 88.47% of the
total farmer votes
cast in support of
the divestment.
The final votes on the
divestment were cast at
a virtual Special Meeting
held on 30 October.
Chairman Peter McBride
says the Board and
management team were
encouraged by the level
of engagement from
farmer shareholders in
the lead‑up to the vote.
“We’ve been pleased
to see so many farmers
joining in the discussions
since the start of this
process in May last year
when we first announced
the decision to explore
divestment options, and
especially over the past
month or so when the
full details have been
available,” McBride says.
“It helps to demonstrate
one of the key things
that sets us apart from
most other processors
– our farmers have a
direct say in the future of
their Co‑operative, and
they’ve made the most
of that opportunity.
“We’re pleased to
have received a strong
mandate, with 88.47%
of the total farmer votes
cast in support of the
recommendation and
80.59% participation
based on milk solids
voted. We want to thank
all farmer shareholders
who voted.”
McBride says the
decision to divest
the Mainland Group
businesses is significant
and one the Board did
not take lightly.
“We have examined the
strategic context we
operate in, our strengths
and how as a Co‑op
we create value for our
farmer owners,” he says.
“The divestment will
usher in an exciting new
phase for the Co‑op.
We will be able to focus
Fonterra’s energy and
efforts on where we do
our best work. We will
have a simplified and
more focused business,
the value of which
cannot be overstated.”
Completion of the
divestment remains
subject to securing
certain regulatory
approvals and the
separation of Mainland
Group business from
Fonterra, both of which
are well underway.
Subject to these steps
being completed,
Fonterra expects the
transaction to complete
in the first half of the
2026 calendar year.
Fonterra is targeting a
tax‑free capital return
of $2 per share to
shareholders and unit
holders, equivalent to
$3.2 billion, once the sale
is complete.
Another shareholder
vote will be required
for the payment of
the capital return. The
process for that capital
return is expected to
be by way of a scheme
of arrangement under
Part 15 of the Companies
Act 1993.
The Co‑op plans to
provide more detail on
the timing and process
for the capital return in
early December.

PRODUCTION
AUSTRALIAAVERAGE
UNITED STATES
NEW ZEALANDEU
JUL 25FEB 25
JAN 25DEC 24OCT 24SEP 25AUG 25APR 25JUN 25MAY 25MAR 25NOV 24
LIQUID MILK (M LITRES)
-1,000
-750
-500
-250
0
750
500
250
EXPORTS
AUSTRALIA
UNITED STATES
NEW ZEALANDEU
APR 25MAR 25FEB 25DEC 24NOV 24OCT 24SEP 25AUG 25JUL 25JUN 25MAY 25JAN 25
MT (000
s
)
-80
-40
0
80
40
160
120
AVERAGE
IMPORTS
MIDDLE EAST & AFRICALATIN AMERICA
ASIACHINA
APR 25MAR 25JAN 25DEC 24SEP 25OCT 24NOV 24JUN 25JUL 25AUG 25FEB 25MAY 25
MT (000
s
)
-100
-50
0
100
50
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.
NOTE: Data for EU and US to August; New Zealand and Australia to September.
NOTE: Data for EU and US to July; Australia to August; New Zealand to September.
NOTE: Data for Asia, Middle East & Africa and Latin America to August; China to September.
SOURCES: Government milk production statistics (DCANZ, Dairy Australia, Eurostat, USDA)/GTA trade data/Fonterra

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)
SEPTEMBER
2025
SEPTEMBER
2024
MONTHLY
CHANGE
SEASON-
TO-DATE
2025/26
SEASON-
TO-DATE
2024/25
SEASON-
TO-DATE
CHANGE
Total Fonterra
New Zealand
179.0174.22.8%316.3307.23.0%
North Island107.9104.63.1%212.1205.43.3%
South Island71.169.62.2 %104.2101.92.3%
Australia10.610.23.8%23.422.73.0%
2025/26 season
Forecast Farmgate
Milk Price
(FGMP) update
ANNOUNCEMENT
DATE
FORECAST
FGMP / RANGE
(NZD)
NZD/USD
RATE AT
ANNOUNCEMENT
DATE
FORECAST
AVERAGE
CONVERSION
RATE FOR
2025/26
SEASON
FORECAST
FOREIGN
EXCHANGE
EXPOSURE
FOR 2025/26
SEASON
HEDGED1 (%)
FOREIGN
EXCHANGE
OPTION
COVER
REMAINING
IN HEDGED
AMOUNT1 (%)
25 September
2025
$10.00 /
$9.00‑$ 11.00
0.58150.589272%18%
21 August 2025$10.00 /
$9.00‑$ 11.00
0.58210.588865%17%
As at the most recent update to the 2025/26 season forecast Farmgate Milk Price
on 25 September 2025:
• Fonterra had hedged approximately 72% of the full year forecast USD cash flows
related to the 2025/26 season Farmgate Milk Price.
• Of that 72%, approximately 18% was hedged with foreign exchange options which
had not yet expired or been exercised.
• If the remaining 28% of the forecast USD cash flows were to be hedged at the 25
September 2025 spot rate of 0.5815, the average NZD/USD conversion rate for the
2025 season would be 0.5892.
• Also shown for information are the equivalent measures at the date of the previous
forecast of the 2025/26 season Farmgate Milk Price on 21 August 2025.
1 Hedged percentages shown are as at the most recent month end prior to announcement date.

WEIGHTED AVERAGE PRICEQUANTITY SOLD
NOV 24OCT 25AUG 25MAY 25SEP 25FEB 25MAR 25DEC 24APR 25JUN 25JUL 25JAN 25
10,000
16,000
22,000
34,000
28,000
40,000
3,400
3,700
4,300
4,000
4,600
4,900
WEIGHTED AVERAGE PRICE (USD/MT)
QUANTITY SOLD ( MT)
Fonterra GDT
results
This chart shows
Fonterra GDT prices and
volumes over the past
12 months.
Fonterra GDT
results
This table provides
more information on the
latest results, including
a snapshot of the rolling
year‑to ‑date results.
LAST TRADING
EVENT

(21 OCTOBER 2025)
YEAR-TO-DATE

(FROM
1 AUGUST 2025)
Quantity Sold on GDT
(Winning MT)
38,913223,036
Change in Quantity Sold on GDT
over same period last year
6.1%4.4%
Weighted Average Product Price
(USD/MT)
3,9144,110
Change in Weighted Average
Product Price over same period last year
0.9%6.4%
Change in Weighted Average
Product Price from previous event
(1.6%)‑
11

Supplementary Information

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, and
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.