Global Dairy Update February 2026

•Fonterra farmers approve divestment capital
return scheme
1
Global Dairy
UPDATE
•New Zealand, Australia, EU and
US monthly production increased
•EU and US monthly exports increased.
New Zealand and Australia monthly
exports decreased
•
Latin America, Asia, Middle East
& Africa an
d China monthly
imports
decreased
•
Fonterra’s New Zealand milk collections
for January were 169.6 million k
gMS,
2.3% above January last season.
Season-to-date collections are
1,074.9
million k
gMS, 2.5% above
last
season
•
Fon
terra’s Australia collections for
January were 10.3 million kgMS, 4.5%
above January last season. Season-to-
date collections are 70.0
million k
gMS,
3.4% above last season
•Cheese, cream and butter demand soars for Lunar
New Year
Key Dates
23 March 2026
FY26 Interim Results Announcement
May 2026
FY26 Q3 Business Update
February 2026

Change for January 2026
compared to January 2025
Change for December 2025
compared to December 2024
Change for January 2026
compared to January 2025
Change for December 2025
compared to December 2024
Change for the 12 months
to January 2026
Change for the 12 months
to December 2025
Change for the 12 months
to January 2026
Change for the 12 months
to December 2025
4.42.0
1.71.22.5
6.1
1.8
1.5
2
OUR MARKETS
Global Production
New Zealand,
Australia, EU
and US monthly
production increased
New Zealand milk
production increased
2.0% in January compared
to the same period the
year
prior.
The increase was mainly
due to higher collections
in the South Island from
on farm productivity gains
and continuing momentum
later into the season.
New Zealand milk
production for the
12
mon
ths to January was
up 1.8% on the previous
comparable period.
Fonterra New Zealand
collections are reported
for January, see page
5
for
det
ails.
Australia milk production
increased 1.5% in January
compared to the same
period the year prior.
Higher year-on-year
collections were observed
in all regions except South
Australia, with good on
farm conditions and fodder
availability supporting
higher collections.
Australia milk production
for the 12 months to
January was down
1.7% on the previous
comparable
per
iod.
Fonterra collections in
Australia are reported
for January, see page 5
for
det
ails.
EU milk production1
inc
reased 6.1% in
December compared
to
the same period the
year prior.
The increase was mainly
due to higher production
in Western Europe, the
top three producing
nations, Germany, France
and the Netherlands,
increasing 10.8%, 7.4%
and 7.0%, respectively.
Production was negatively
affected this time last
year by
the impacts of
Bluetongue Disease.
EU milk production for the
12 months to December
was up 1.2% on the
previous comparable
period.
US milk production
i
ncreased 4.4% in
December compared
to the same period the
year prior.
The
increase was mainly
du
e to larger herds and
higher yields, which have
outperformed 2024 for 10
consecutive months.
California production
increased 9.6% ye
ar-on-
year, accounting for 36.9%
of the 24-state increase for
the month. Kansas
accounted for
11.4% o
f the
increase, with production
lifting 26.2% ye
ar-on-year.
US milk production
f
or the 12 months to
December increased 2.5%
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
EU and US monthly
exports increased.
New Zealand and
Australia monthly
exports decreased
New Zealand dairy
exports decreased 4.5%,
or 16,177
MT, in January
compared to the same
period the year prior.
The decrease was mainly
due to lower export
volumes of WMP to
Indonesia, partially offset
by higher export volumes
of fluid milk products.
Exports for the 12
months to January
were down 0.2%, or
8, 712 MT, on the previous
comparable period.
T
he decrease was mainly
due to lower export
volumes of WMP to Algeria
and China.
EU dairy exports
1
increased 15.6 %, or
78,116 MT in December
compared to the same
period the year prior.
The increase was mainly
due to higher export
volumes of cheese, fluid
milk products and SMP.
Ireland saw the largest
increase, up 42.5 %, or
24,463
MT, followed by
Germany and Poland.
Exports for the 12 months
to December were up
3.3%, or 219,833 M T,
on the pr
evious
comparable
period.

The increase was mainly
due to higher export
volumes of SMP from
Germany and fluid milk
products from Ireland.
US dairy exports
increased 13.7%, or
30,547 MT, in December
compared to the same
pe
riod the year prior.
The increase was mainly
du
e to higher export
vol
umes of cheese
to Mexico, Korea and
Australia. The increase
was partially offset by
lower export volumes of
WPC and WPI.
Exports for the 12 months
to December were up
5.3%, or 147,747 MT,
o
n the previous
comparable period.
Th
e increase was mainly
du
e to higher export
volumes of cheese to
Korea, Japan and Mexico,
butter to
Canada and
w
hey powder to China.
Australia dairy exports
decreased 4.0%, or
2, 960
MT, in December
compared to the same
period the year prior.
The decrease was mainly
due to lower export
volumes of SMP, with
Indonesia doubling their
SMP imports from Australia
compared to December
the year prior.
Exports for the 12
months to December
were down 4.1%, or
28,808
MT, on the previous
comparable period.
The decrease was mainly
due to lower export
volumes of SMP and whey
powder, partially offset
by higher export volumes
of fluid milk products
and
cheese.
New ZealandAustraliaEuropean UnionUSA
%%%%
%%
To view a chart that
illustrates year-on-year
changes in exports –
%
%
Change for January 2026
compared to January 2025
Change for December 2025
compared to December 2024
Change for December 2025
compared to December 2024
Change for December 2025
compared to December 2024
Change for the 12 months
to December 2025
Change for the 12 months
to December 2025
Change for the 12 months
to January 2026
Change for the 12 months
to December 2025
13.7
4.1
4.5
3.3
5.3
4.0
15.6
0.2
1 Excludes UK.

4
OUR MARKETS
Global Imports
Latin America, Asia,
Middle East & Africa
and China monthly
imports
decr
eased
Latin America dairy
import volumes
decreased 13.5 %, or
27,952
MT, in November
compared to the same
period the year prior.
The decrease was mainly
due to lower import
volumes of cheese by Brazil
and SMP by Mexico.
Imports for the 12
months
to November were
up 0.8%, or 21,716
M T,

on the previous
comparable
per
iod.
The increase was mainly
due to higher import
volumes of SMP by Brazil,
Colombia and Mexico,
partially offset by lower
import volumes of WMP
by
Br
azil.
Asia (excluding China)
dairy import volumes
decreased 1.3%, or
5, 736MT, in November
compared to the same
period the year prior.
The decrease was mainly
due to lower volumes
of whey powder by
Vietnam, Indonesia and the
Philippines, partially offset
by higher import volumes
of fluid milk products.
Imports for the 12 months
to October were up 1.8%, or
103,116
MT
, on the previous
comparable
period.
The increase was mainly
due to higher import
volumes of cheese by
Korea, partially offset by
lower import volumes of
SMP and whey powder.
Middle East and Africa
dairy import volumes
1
decreased 29.7 %, or
129,536 MT, in November
compared to the same
period the year prior.
The decrease was mainly
due to lower import
volumes of fluid milk
products and cheese by
the United Arab Emirates
and SMP by Algeria.
Imports for the 12 months
to November were down
7.5%, or 402,854
M T,

on the previous
comparable per
iod.
The decrease was mainly
due to lower import of fluid
milk products and WMP by
the United Arab Emirates.
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
per
iod.
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 November 2025
compared to November 2024
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 the 12 months
to
No
vember 2025
Change for the 12 months
to
No
vember 2025
Change for the 12 months
to
No
vember 2025
To view a chart that
illustrates year-on-year
changes in imports –
4.41.313.5
1.87.5
%
Change for the 12 months to
December 2025
2.4
29.7
0.8
%

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 Jan
compared to prior season
Season-to-date 1 Jun–31 Jan
compared to prior season
Season-to-date 1 Jun–31 Jan
compared to prior season
Season-to-date 1 Jun–31 Jan
compared to prior season
Increase for January 2026
compared to January 2025
Increase for January 2026
compared to January 2025
Increase for January 2026
compared to January 2025
Increase for January 2026
compared to January 2025
4.54.4
4.9
0.62.3
3.41.02.5
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 January
were 10.3 million kgMS,
4.5% higher than January
last season.
The increase was mainly
due to favourable on farm
conditions despite higher
temperatures and lower
than average rainfall in
Victoria and Tasmania.
Input costs remain in
line with medium term
averages, and good
conditions in spring,
with effective fodder
conservation have
supported production
resilience since the
season
peak.
Season-to-date collections
for Fonterra Australia are
70.0 million kgMS, 3.4%
above last season.
North Island milk
collections in January
were 90.9 million kgMS,
0.6% higher than January
last
season.
The increase was mainly
due to improved on
farm efficiencies, offset
by challenging weather
conditions. Above average
temperatures and
substantial rainfall drove
soil moisture levels well
above historical averages
across most regions.
Season-to-date collections
are 630.0 million kgMS,
1.0% above last season.
South Island milk
collections in January
were 78.7 million kgMS,
4.4% higher than January
last
season.
The increase was mainly
due to continued
momentum late into the
season with favourable
on-farm conditions and
feed availability supporting
milk volumes later in
the season.
Pasture conditions were
mixed, with higher-than-
normal soil moisture in
upper South Island, with
near or below normal soil
moisture across the lower
South Island.
Season-to-date collections
are 444.9 million kgMS,
4.9% above last season.
Fonterra's New Zealand
collections
for January
were 169.6 million kgMS,
2.3 % above January
last season.
The increase was mainly
due to higher collections
in the South Island from
favourable on-farm
conditions supporting
farmers to extend milking
l
ater in the season.
Season-to-date collections
are 1, 074.9 million kgMS,
2.5 % above last season.
%%
%%%%
%%

%
%%
%
%
To view more
information, including
a snapshot of the rolling
year-to-date results –
%
6
GDT Price IndexNZD/USD Spot Rate
Feb 24Feb 25Jun 25Oct 25Feb 26Oct 24Jun 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
destina
tion:
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 398
17 February 2026:
The next trading event will be held on 3 March 2026. Visit www.globaldairytrade.info for more information.
Change in Fonterra’s
weighted average
product price from
previous event
3.3
Fonterra’s weighted
average product price
(USD/MT)
4, 149
USD
Fonterra product
quantity sold on GDT
000’ MT
19.0
NORTH ASIA (INCLUDING CHINA)
SOUTH EAST ASIA
MIDDLE EAST AND AFRICA
LATIN AMERICA
OTHER
USD 4,736/MT
0.8
CHEDDAR
USD 6,499/MT
11.2
BUTTER
USD 3,704/MT
2.5
WMP
USD 6,751/MT
3.5
AMF
USD 2,997/MT
2.0
SMP
19,030
MT
Latest Auction
4 47, 2 9 2
MT
Financial Year-to-Date

7
Our Performance
Fonterra farmers
approve divestment
capital return
scheme
Following the virtual
Special Meeting on 19
February 2026, Fonterra
confirmed that its
farmer shareholders
have approved the
scheme of arrangement
for the capital return
that’s expected
from the sale of its
global Consumer and
associated businesses.
98.85% of the total
shareholder votes cast
were in support of the
capital return proposal,
which was set out in the
Notice of Meeting for
the Special Meeting.
The result means
Fonterra can seek
final Court approval to
undertake the capital
return of $2. 00 per share
to shareholders and unit
holders, subject to the
divestment of Mainland
Group to Lactalis
being completed.
Fonterra expects the
transaction to be
complete in the first
quarter of the 2026
calendar year, subject
to separation of the
businesses from Fonterra
and provided the
remaining regulatory
approvals are received
within the expected
time-frames.
Once these steps have
been completed, the
Co-operative will confirm
the record date for the
capital return, which
will be within the five
business days prior
to the capital return
payment being made
to shareholders and
unit holders
.

Our Co-op
8
Cheese, cream and
butter demand soars
for Lunar New Year
New Zealand dairy
is showing up in
restaurants, cafés and
bakeries across Asia in
creative ways during the
Lunar New Year.
Lunar New Year is one of
the biggest
and most
important festivals for
countries like China,
Vietnam, Malaysia and
Indonesia. This year
marks the Year of the
Horse, symbolising
freedom and growth.
Fonterra's President
Global Foodservice and
Greater
China CEO, Teh-
han Chow, says the
festival’s traditions of
gathering, gifting and
sharing food is driving
a surge in demand
for dairy.
"Consumers dine out
more frequently during
the festive period,
exchanging gifts of food
to celebrate, which is
driving demand for dairy
as it’s being used more
often to create delicious
treats and dishes,"
he says.
Developing festive
menus with flavours
symbolising good
fortune and prosperity is
a big p
art of the
foodservice industry in
East and Southeast Asia
Fonterra’s dairy products,
sold through the Anchor
Food Professionals™
(AFP)
brand, feature
widely in pastries, dishes
and desserts enjoyed
during this period.
This growing seasonal
demand is something the
Co-op is
well placed to
serve, thanks to its focus
on innovation, strong
customer partnerships
and accelerating growth
across key markets like
Southeast Asia.
“Food is an important
element in the
celebration of Lunar
New Year. The season
provides a platform to
launch new dishes, giving
us the opportunity to
co-create recipes and
explore new applications
of our products
with customers.”
Suppor
ting this work
is AFP’s network of
chefs, who work closely
with restaurants,
bakeries and cafés to
co
-create these festive

menu solutions. Based
in
-market AFP chefs
can respond quickly
to emerging trends,
helping the Co-op's
foodservice partner
s
develop high
-quality
dishes that resonate
with consumers.
A stand-out item this
year is the Fortune Coin
Cake with a cheese pull
– made using Fonterra's
mozzarella cheese. This
snack is associated with
wishes for wealth and
abundance which aligns
with the general spirit of
the festival as well.
Red-themed treats
are also a favourite
during the new year
celebrations, as the
colour is associated
with prosperity and
good luck. Desserts like
strawberry cakes made
with Fonterra butter
are becoming a popular
choice for consumers.
Across Southeast Asia,
Lunar New Year is tied
to gift
-giving, with
cookies being a st
aple of
festive
hampers.
“Our teams in Vietnam
and Indonesia have
captured this opportunity
with the launch of a
new range of sweet
and savoury cookie
concepts to share with
customers, helping them
develop seasonal cookie
collections and driving
increased butter sales.”
This hand
s
-on
collaboration – combining
chef expertise, customer
insight and fast, flexible
product development
– enables the Co-op
to both support its
customers while
capturing the growing
demand from the region.
Dairy is not traditionally
used in Southeast Asian
cuisines, but it is being
used more frequently
in fusion dishes that
are in demand during
the festival.
“Rising int
erest in fusion
and Western
-style dishes
is supporting demand
for our dairy ingredients
like UHT cream, cheese
and butter. A lot of
our customers have
developed dishes that
blend local ingredients
with a modern dairy
twist like Salmon Lotus
Seed Pizza.
“By staying close to
market trends and
collaborating with
customers, we’re able
to quickly see what’s
going on and turn ideas
into practical solutions
to meet our customers’
evolving needs.”

Production
AustraliaAverage
United States
New ZealandEU
Jul 25Feb 25
Jan 26Dec 25Oct 25Sep 25Aug 25Apr 25Jun 25May 25Mar 25Nov 25
Liquid Milk (m Litres)
-1,000
-500
0
1,500
1,000
500
Exports
Australia
United States
New ZealandEU
Apr 25Mar 25Feb 25Dec 25Nov 25Oct 25Sep 25Aug 25Jul 25Jun 25May 25Jan 26
MT (000
s
)
-100
-50
0
100
150
50
200
Average
Imports
Middle East & AfricaLatin America
AsiaChina
Apr 25Mar 25Jan 25Dec 25Sep 25 Oct 25Nov 25Jun 25Jul 25Aug 25Feb 25May 25
MT (000s)
-200
-150
-50
-100
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 December; New Zealand and Australia to January.
NOTE: Data for EU, US and Australia to December; New Zealand to January.
NOTE: Data for Asia, Middle East & Africa and Latin America to November; 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.
Milk Collection
(million kgMS)
January
2026
January
2025
Monthly
Change
Season-
to-Date
2025/26
Season-
to-Date
2024/25
Season-
to-Date
Change
Total Fonterra
New Zealand
169.6165.72.3%1,074.91,048.22.5%
North Island90.990.30.6%630.0624.11.0%
South Island78.775.44.4%444.9424.14.9%
Australia10.39.84.5%70.067.63.4%
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 (%)
20 February
2026
$9.50 /
$9.20-$9. 80
0. 59670. 591195%15%
18 December
2025
$9.00 /
$8.50-$9. 50
0. 57760. 588289%14%
As at the most recent update to the 2025/26 season forecast Farmgate Milk Price
on 20 February 2026:
•Fonterra had hedged approximately 95% of the full year forecast USD cash flows
related to the 2025/26 season Farmgate Milk Price
•
Of
that 95%, approximately 15% was hedged with foreign exchange options which
had not yet expired or been exercised
•
If
the remaining 5% of the forecast USD cash flows were to be hedged at the 20
February 2026 spot rate of 0.5967, the average NZD/USD conversion rate for the
2025 season would be 0.5911
•
Also sh
own for information are the equivalent measures at the date of the previous
forecast of the 2025/26 season Farmgate Milk Price on 18 December 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 26Mar 25Dec 25Apr 25Jun 25 Jul 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 S
o
ld
( 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
(17
February 2026)
Year-to-Date
(From 1 August 2025)
Quantity Sold on GDT
(Winning MT)
19,030447,292
Change in Quantity Sold on GDT
over same period last year
(1.6%)3.4%
Weighted Average Product Price
(USD/MT)
4, 1493, 917
Change in Weighted Average
Product Price over same period last year
(9.6%)(3.6%)
Change in Weighted Average
Product Price from previous event
3.3%-
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.