Global Dairy Update January 2026

•Eltham cheese stacks up in new McDonald’s burger
1
Global Dairy
UPDATE
•New Zealand, EU and US monthly
production increased. Australia monthly
production decreased
•Australia, EU and US monthly exports
increased. New Zealand monthly
exports decreased
•
Latin America, Asia, Middle East
& Africa
and China monthly
imports
decreased
•
Fonterra’s New Zealand milk collections
for December were 183.0 million
kgMS,
2.5% above December last season.
Season-to-date collections are
905.3 million kgMS, 2.6% above
last
season
•
F
onterra’s Australia collections for
December were 11.7 million kgMS, 6.8%
above December last season. Season-
to-date collections are 59.7
million
k
gMS, 3.3% above last season
•Fonterra plans to expand successful organic business
into South Island
Key Dates
December 2025 to February 2026
Application period to
supply Fonterra
23 Ma
rch 2026
FY26 Interim Results
Announcement
May 2026
FY26 Q3 Business Update
JANUARY 2026

Change for December 2025
compared to December 2024
Change for November 2025
compared to November 2024
Change for November 2025
compared to November 2024
Change for November 2025
compared to November 2024
Change for the 12 months
to December 2025
Change for the 12 months
to November 2025
Change for the 12 months
to November 2025
Change for the 12 months
to November 2025
4.42.5
2.30.92.1
4.1
1.9
2.2
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 December
compared to the same
period the year prior.
The increase was mainly
due to higher collections
in the South Island from
favourable weather
conditions and on-farm
productivity gains.
New Zealand milk
production for
the 12 months to
December was up
1.9% on the previous
comparable period.
Fonterra New Zealand
collections are reported
for December, see page 5
for details.
Australia milk
production decreased
2.2% in November
compared to the same
period the year prior.
The decrease was mainly
due to lower collections
in Victoria, down 3.1%
year-on-year. The decrease
was partially offset by
higher collections in
Queensland, New South
Wales and Tasmania.
Australia milk production
for the 12 months to
November was down
2.3% on the previous
comparable period.
Fonterra collections in
Australia are reported for
December, see page 5
for details.
EU milk production1
increased 4.1% in
November compared
to the same period the
year prior.
The increase was mainly
due to higher production in
Germany, France and the
Netherlands, up 7.5%, 6.3%
and 7.3%, respectively. The
increase was partially offset
by lower collections in
Spain, Romania and Ireland.
The higher production
volumes has led to a steep
decline in European milk
prices, a signal to farmers
to reduce production.
EU milk production
for the 12 months to
November was up
0.9 % on the previous
comparable period.
US milk production
increased 4.4% in
November compared to the
same period the year prior.
The increase was mainly
due to higher yields,
which have outperformed
2024 for nine
consecutive months.
Production increased
year-on-year for 20 of the
24 major milk-producing
states in November, with
California up 10.4% (2024
was negatively impacted
by bird flu), South Dakota
up 10.8%, and Kansas
up 26.4%.
US milk production
for the 12 months to
November increased
2.1% 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
Australia, EU
and US monthly
exports increased.
New Zealand monthly
exports decreased
New Zealand dairy
exports decreased 9.0%,
or 33,187 MT, in November
compared to the same
period the year prior.
The decrease was mainly
due to lower export
volumes of WMP and fluid
milk products, down 13.4%
and 21.6% year-on-year.
Exports for the 12 months
to November were
up 1.0%, or 36,118 M T,
on the previous
comparable period.
The increase was mainly
due to higher exports of
cheese, butter and AMF
partially offset by lower
export volumes of WMP
and SMP.
EU dairy exports
1
increased 4.9%, or
26,086 MT, in November
compared to the same
period the year prior.
The increase was mainly
due to higher export
volumes of SMP, up
34.4% year-on-year, with
France, Netherlands and
Germany SMP exports
up 59.8%, 91.6% and
80.7%, respectively.
Exports for the 12 months
to November were up
2.3%, or 155,942 M T,
on the previous
comparable period.
The increase was mainly
due to higher export
volumes of SMP and fluid
milk products.
US dairy exports
increased 8.5%, or
19,678 MT, in October
compared to the same
period the year prior.
The increase was mainly
due to higher export
volumes of cheese, which
lifted 35.4% year-on-year.
October marked the fifth
consecutive month of
greater than 25% year-
on-year increases in
cheese exports.
Exports for the 12 months
to October were up
2.8%, or 77,539 M T,
on the previous
comparable period.
The increase was mainly
due to higher export
volumes of cheese,
to Mexico, Korea
and Australia.
Australia dairy exports
increased 9.0%, or
6,128 MT, in November
compared to the same
period the year prior.
The increase was mainly
due to higher export
volumes of cheese, SMP
and fluid milk products,
with total year-on-year
exports to Indonesia
increasing 62.5%, with SMP
volume more than doubled.
Exports for the
12 months to November
were down 2.7 %, or
18,791 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 November 2025
compared to November 2024
Change for October 2025
compared to October 2024
Change for November 2025
compared to November 2024
Change for November 2025
compared to November 2024
Change for the 12 months
to October 2025
Change for the 12 months
to November 2025
Change for the 12 months
to November 2025
Change for the 12 months
to November 2025
8.5
2.7
9.0
2.3
2.8
9.0
4.9
1.0
1 Excludes UK.

4
OUR MARKETS
Global Imports
Latin America, Asia,
Middle East & Africa
and China monthly
imports decreased
Latin America dairy
import volumes
decreased 7.6%, or
17,052 MT, in October
compared to the same
period the year prior.
The decrease was mainly
due to lower import
volumes of cheese
by Brazil, down 44.7%
year-on-year, partially
offset by higher import
volumes of whey powder.
Imports for the 12 months
to October were up 1.7%, or
44,929 MT, on the previous
comparable period.
The increase was mainly
due to higher import
volumes of SMP by Mexico
and Colombia, partially
offset by lower import
volumes of WMP by Brazil.
Asia (excluding China)
dairy import volumes
decreased 3.5%, or
15,946 MT, in October
compared to the same
period the year prior.
The decrease was mainly
due to lower volumes of
SMP by Pakistan and the
Philippines.
Imports for the 12 months
to October were up
0.8%, or 47,854 M T,
on the previous
comparable period.
The increase was mainly
due to higher import
volumes of cheese by the
Philippines and Indonesia,
partially offset by lower
import volumes of SMP.
Middle East and Africa
dairy import volumes
1
decreased 26.6%, or
112,594 MT, in October
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, down 65.4%
compared to October
last year.
Imports for the 12 months
to October were down
5.9%, or 318,892 M T,
on the previous
comparable period.
The decrease was mainly
due to lower imports of
fluid milk products by the
United Arab Emirates,
partially offset by higher
import volumes of SMP.
China dairy import
volumes decreased by
4.4 %, or 12,584 MT, in
December compared
to the same period the
year prior.
The decrease was mainly
due to lower import
volumes of fluid milk
products and SMP, partially
offset by higher import
volumes of cheese, whey
powder and butter
Imports for the 12 months
to December were up
2.4%, or 68,894 M T,
on the previous
comparable period.
The increase was mainly
due to higher import
volumes of whey powder
partially offset by
lower volumes of fluid
milk products.
Latin AmericaAsiaMiddle East & AfricaChina
1 Estimates are included for those countries that have not reported data.
%%%%
%%
Change for October 2025
compared to October 2024
Change for December 2025
compared to December 2024
Change for October 2025
compared to October 2024
Change for October 2025
compared to October 2024
Change for the 12 months
to October 2025
Change for the 12 months
to October 2025
Change for the 12 months
to October 2025
To view a chart that
illustrates year-on-year
changes in imports –
4.43.57.6
0.85.9
%
Change for the 12 months to
December 2025
2.4
26.6
1.7
%

To view a table that shows
detailed milk collections
in New Zealand and
Australia compared to the
previous season –
Season-to-date 1 Jul–31 Dec
compared to prior season
Season-to-date 1 Jun–31 Dec
compared to prior season
Season-to-date 1 Jun–31 Dec
compared to prior season
Season-to-date 1 Jun–31 Dec
compared to prior season
Increase for December 2025
compared to December 2024
Increase for December 2025
compared to December 2024
Increase for December 2025
compared to December 2024
Increase for December 2025
compared to December 2024
6.85.6
5.0
0.12.5
3.31.02.6
Volume (m Litres/Day)
JunJulAugSepOctNovDecJanFebMarAprMay
2025/26
2024/252023/24
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 December
were 11.7 million kgMS,
6. 8% higher than
December last season.
The increase was mainly
due to favourable weather,
cooler temperatures and
above average rainfall in
Victoria and Tasmania
improving soil moisture
and supporting late
season grazing.
Season-to-date collections
for Fonterra Australia are
59.7 million kgMS, 3.3%
above last season.
North Island milk
collections in December
were 99.9 million kgMS,
0.1% higher than December
last season.
The increase was mainly
due to favourable pasture
conditions, supported by
higher soil moisture along
the East Coast and parts
of the West Coast, partially
offset by hotter, drier
conditions in Northland, Bay
of Plenty and central areas.
Season-to-date collections
are 539.2 million kgMS,
1.0% above last season.
South Island milk
collections in December
were 83.1 million kgMS,
5.6% higher than
December last season.
The increase was mainly
due to favourable weather
conditions, with near
normal soil moisture and
river flows supporting
consistent pasture growth.
Season-to-date collections
are 366.1 million kgMS,
5.0% above last season.
Fonterra's New Zealand
collections for December
were 183.0 million kgMS,
2.5% above December
last season.
The increase was mainly
due to higher collections
in the South Island from
favourable weather
conditions and continuous
improvement in on-farm
management supporting
pasture growth and cow
conditions.
Season-to-date collections
are 905.3 million kgMS,
2.6% above last season.
%%
%%%%
Forecast milk collections for
the 2025/26 season
1,545M
kgMS
%%
Forecast Farmgate Milk Price
for the 2025/26 season
NZD
per
kgMS
8.50-
9.50
Outlook for
Fonterra in
New Zealand
The inclusion of off-GDT
sales contributed
approximately two cents
per kgMS to the Milk
Price for the 2025/26
season from 1 June 2025
to 30 November 2025.

%
%%
%
%
To view more
information, including
a snapshot of the rolling
year-to-date results –
%
6
GDT Price IndexNZD/USD Spot Rate
Jan 24Jan 25May 25Sep 25Jan 26Sep 24May 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
Following a period of consolidation between 57 and 58 US
cents the NZD/USD exchange rate appreciated swiftly over
the later part of January to above 60 US cents. Resurgence
in the exchange rate has predominantly been driven by
broad-based USD weakness stemming from increased
political uncertainty in the United States. However, some
independent NZD strength also played a factor as financial
markets assess, and re-price, the developing expectations
for recovery of the New Zealand economy.
Fonterra GDT results
at trading event 396
20 January 2026:
The next trading event will be held on 3 February 2026. Visit www.globaldairytrade.info for more information.
Change in Fonterra’s
weighted average
product price from
previous event
2.3
Fonterra’s weighted
average product price

(USD/MT)
3,714
USD
Fonterra product
quantity sold on GDT
000’ MT
24.7
NORTH ASIA (INCLUDING CHINA)
SOUTH EAST ASIA
MIDDLE EAST AND AFRICA
LATIN AMERICA
OTHER
USD 4,594/MT
1.5
CHEDDAR
USD 6,191/MT
3.0
AMF
USD 2,652/MT
1.5
SMP
USD 5,372/MT
2.7
BUTTER
USD 3,448/MT
1.2
WMP
24,690
MT
Latest Auction
409,289
MT
Financial Year-to-Date

7
Our Performance
Eltham cheese
stacks up in new
McDonald’s burger
Fonterra’s Eltham site in
Taranaki is stepping up
its global impact with an
upgrade to its processed
cheese production
lines, boosting capacity
to meet growing
international demand.
The investment is part of
the Co-op's strategy to
scale up for long-term
growth, make the
best use of farmers’
milk, and focus on
high-value applications
in foodservice. It also
reflects the Co-op's
commitment to strong
partnerships with
global customers
like McDonald’s, and
delivering consistent,
high-quality dairy
products to consumers
around the world.
The site’s processed
cheese is now featured
in McDonald’s newest
burger – the Big Arch
– which launched in
Australia on 16 July
and in New Zealand on
22 October, following
earlier rollouts in Europe
and the United States.
The burger includes three
slices of Eltham’s cheddar
cheese. Kelvin Gray,
Operations Manager at
Eltham, says the team
is proud to see their
product showcased in
such a high-profile way.
“It’s not every day you
see three slices of our
cheese in one burger
– it’s a great showcase
of the skill and care
that goes into what
we do here in Eltham.
Knowing that our work
in Taranaki is being
enjoyed by consumers
around the world is
incredibly rewarding.”
The Eltham site has been
producing cheese for
McDonald’s for decades,
and today its white
cheddar slices are used in
McDonald’s restaurants
across the Asia Pacific.
This year alone,
Fonterra has supplied
millions of kilograms of
cheese and other dairy
products to McDonald’s,
with New Zealand’s
170+ McDonald’s
restaurants accounting
for approximately
1.7 million kilograms.
Every batch of cheese
undergoes around
100 rigorous quality
tests to ensure it meets
McDonald’s standards
for taste and consistency
– whether served in
New Zealand, China or
the Philippines. Last
year, Fonterra was also
awarded the McDonald’s
ANZ Supplier Quality
Management System
Excellence Gold Award
for scoring an A-grade
for more than five
consecutive years.
Scaling up to meet
global demand for
slice-on-slice and
mozzarella cheese
Announced in
August 2025, Eltham is
upgrading its processed
cheese lines to increase
capacity for slice-on-slice
(SOS) cheese, in response
to growing demand
from global customers
like McDonald’s. The
upgraded individually
wrapped slice line will
see a new grinder (the
machine that grinds
up cheese prior to it
being cooked), new
blender and new cooker.
Alongside this, two new
cheese grinders are
being installed on each
of the SOS lines. The
upgrade and installations
are running on track,
with commissioning of
the lines scheduled for
February 2026.
The site also continues
to scale up its operations
to meet rising global
demand for Individually
Quick Frozen Mozzarella.
This will see an increase
of approximately
7,000 metric tons in
volume for the site once
operational in June 2026.
This expansion will enable
the Co-op to supply
enough cheese for more
than 40 million pizzas
annually, reinforcing
cheese as a key category
in Fonterra’s high-value
Foodservice channel.
Eltham’s cheese
production is deeply
connected to
New Zealand’s dairy
farming community.
Milk from local farms is
transformed into cheese
that ends up in billions of
meals globally.
With around
400 employees, Eltham
is one of South Taranaki’s
largest employers. Its
expertise in processed
cheese continues to
evolve, helping shape
the taste of global
foodservice – one slice at
a time.

Our Co-op
8
Fonterra plans to
expand successful
organic business into
South Island
Fonterra’s organic
business has been
going from strength to
strength in recent years,
with the Co-operative
now inviting applications
from farmers in the
South Island.
The South Island
recruitment of farmers
interested in converting
as well as existing organic
farms will initially focus
on those located around
Southland and up to the
Canterbury region.
This is in addition to
continuing to recruit
more organic farmers
in the North Island,
where more than
100 farms are currently
part of the Fonterra
Organic Programme.
Anne Douglas,
Group Director for
Fonterra Farm Source,
says the expansion
into the South Island is
another positive news
story for the Co-op.
“We already have a
strong performing
organic business but have
more room for growth
based on increasing
demand from customers
around the world,”
says Douglas.
“Our plan is to be able
to process organic
dairy products at our
Stirling site from the
2028/29 season, with
the recruitment process
starting now to allow
time for converting
farmers to achieve
organic certification.”
Before work commences
at Stirling to enable the
segregated processing of
organic milk, the Co-op
is looking to achieve
minimum recruitment
targets in the South
Island that would ensure
operational efficiencies.
“Expanding the
programme seeks
to offer South Island
farmers another supply
option and is also
expected to benefit
all Fonterra farmers
based on the positive
contribution our organic
business makes to the
wider Co-op’s earnings,”
adds Douglas.
In recent years, the global
organic dairy category
has shown consistent
retail sales value growth
year-on-year.
Fonterra is well
positioned to capitalise
on the growing demand
with the Co-op's diverse
product range, broad
market access and strong
customer partnerships.
Andrew Henderson,
Fonterra’s General
Manager Organics, says
the Co-op offers support
for its shareholding
farmers throughout their
transition to organic.
“Our support package
includes conversion
incentives, advice,
networking opportunities
and linking farmers up
with peers who can
mentor them through the
process,” says Henderson.
“Organic farming might
not be the right fit for
all shareholders, but
for those interested in
converting it has the
potential to unlock
additional returns.
“For example, since
the Organic Milk Price
was first established in
2016/17, it has delivered
an average premium of
~$2 per kgMS above
the Farmgate Milk
Price. There’s also the
potential for lower input
costs that are typical in
New Zealand’s grass-fed
organic systems.”
Fonterra’s organic
business has been
running since 2002, with
Hautapu, Morrinsville
and Waitoa UHT
producing the majority
of the Co-op’s organic
dairy products.
The Organic Milk Price
was introduced in 2016/17
to provide suppliers
with a market-based
return for their organic
milk solids.
Since the 2021/22 season,
the programme’s fully
certified shareholding
farmers have received
an Organic Milk Price of
more than $10 per kgMS.
New record highs have
been set for the past
three years on the back
of growing demand,
culminating in a final
payout of $12.35 per
kgMS last season. The
current Organic Milk
Price forecast for the
2025/26 season is
$13.10 per kgMS.
“At the heart of this
business are farmers who
are passionate about
the principles of organic
farming and who create
goodness for customers
and consumers
around the world that
value organic dairy,”
says Henderson.
“We’re excited about
its potential for further
growth and would
encourage any interested
farmers to get in touch.”

Production
AustraliaAverage
United States
New ZealandEU
Jul 25Feb 25
Jan 25Dec 25Oct 25Sep 25Aug 25Apr 25Jun 25May 25Mar 25Nov 25
Liquid Milk (m Litres)
-1,200
-800
-400
0
1,200
800
400
Exports
Australia
United States
New ZealandEU
Apr 25Mar 25Feb 25Dec 25Nov 25Oct 25Sep 25Aug 25Jul 25Jun 25May 25Jan 25
MT (000
s
)
-50
0
100
150
50
200
Average
Imports
Middle East & AfricaLatin America
AsiaChina
Apr 25Mar 25Jan 25Dec 25Sep 25Oct 25Nov 25Jun 25Jul 25Aug 25Feb 25May 25
MT (000s)
-200
-150
-50
-100
0
150
50
100
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, US and Australia to November; New Zealand to December.
NOTE: Data for US to October; New Zealand, EU, and Australia to November.
NOTE: Data for Asia, Middle East & Africa and Latin America to October; China to December.
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.
MIilk Collection
(million kgMS)
December
2025
December
2024
Monthly
Change
Season-
to-Date
2025/26
Season-
to-Date
2024/25
Season-
to-Date
Change
Total Fonterra
New Zealand
183.0178.52.5%905.3882.52.6%
North Island99.999.80.1%539.2533.81.0%
South Island83.178.75.6%366.1348.75.0%
Australia11.711.06.8%59.757.83.3%
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 (%)
Foreight
Exchange
Option Cover
Remaining
in Hedged
Amount1 (%)
18 December
2025
$9.00 /
$8.50-$9.50
0.57760.588289%14%
25 November
2025
$9.50 /
$9.00-$10.00
0.56090.583884%17%
As at the most recent update to the 2025/26 season forecast Farmgate Milk Price
on 18 December 2025:
• Fonterra had hedged approximately 89% of the full year forecast USD cash flows
related to the 2025/26 season Farmgate Milk Price.
• Of that 89%, approximately 14% was hedged with foreign exchange options which
had not yet expired or been exercised.
• If the remaining 11% of the forecast USD cash flows were to be hedged at the 18
December 2025 spot rate of 0.5776, the average NZD/USD conversion rate for the
2025 season would be 0.5882.
• Also shown for information are the equivalent measures at the date of the previous
forecast of the 2025/26 season Farmgate Milk Price on 25 November 2025.
1 Hedged percentages shown are as at the most recent month end prior to announcement date.

Weighted Average PriceQuantity Sold
Nov 25Oct 25Aug 25May 25Sep 25Feb 25Mar 25Dec 25Apr 25Jun 25Jul 25Jan 26
7,000
13,000
19,000
37,000
25,000
31,000
43,000
3,200
3,500
4,000
3,800
4,400
4,700
5,000
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
(20 January 2026)
Year-to-Date

(From 1 August 2025)
Quantity Sold on GDT
(Winning MT)
24,690409,289
Change in Quantity Sold on GDT
over same period last year
2.0%4.1%
Weighted Average Product Price
(USD/MT)
3,7143,902
Change in Weighted Average
Product Price over same period last year
(13.6%)(2.8%)
Change in Weighted Average
Product Price from previous event
2.3%-
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.