Global Dairy Update March 2026

• Fonterra completes sale of Mainland Group
to Lactalis
• On 23 March, Fonterra
announced its 2026
Interim Results
1
Global Dairy
UPDATE
• New Zealand, Australia, EU and
US monthly production increased
• New Zealand, EU and US monthly
exports increased. Australia monthly
exports decreased
• Latin America, Asia, Middle East
& Africa and China monthly
imports decreased
• Fonterra’s New Zealand milk collections
for February were 143.2 million kgMS,
7.1% above February last season.
Season-to-date collections are
1,218.3 million kgMS, 3.1% above
last season
• Fonterra’s Australia collections for
February were 8.4 million kgMS, 3.4%
above February last season. Season-to-
date collections are 78.4 million kgMS,
3.4% above last season
• Fonterra CEO Miles Hurrall to step down
Key Dates
May 2026
FY26 Q3 Business Update
1 June 2026
Start of the 2026/27 Season
31 July 2026
End of FY26 Financial Year
March 2026
For further details,
visit our website –

Change for February 2026
compared to February 2025
Change for February 2026
compared to February 2025
Change for January 2026
compared to January 2025
Change for January 2026
compared to January 2025
Change for the 12 months
to February 2026
Change for the 12 months
to February 2026
Change for the 12 months
to January 2026
Change for the 12 months
to January 2026
2.96.0
1.71.73.2
5.2
2.5
1.5
2
OUR MARKETS
Global Production
New Zealand,
Australia, EU
and US monthly
production increased
New Zealand milk
production increased
6. 0% in February compared
to the same period the
year prior.
The increase was mainly
due to higher collections
in the North Island from
favourable weather
conditions, and continuing
momentum in the
South Island.
New Zealand milk
production for the
12 months to February was
up 2.5% on the previous
comparable period.
Fonterra New Zealand
collections are reported
for February, see page 5
for details.
Australia milk production
increased 1.5% in January
compared to the same
period the year prior.
The increase was mainly
due to higher collections in
Victoria and Tasmania, with
strong fodder reserves
and steady feed prices
supporting the increase.
Australia milk production
for the 12 months to
January was down
1.7% on the previous
comparable period.
Fonterra collections in
Australia are reported
for February, see page 5
for details.
EU milk production1
increased 5.2% in January
compared to the same
period the year prior.
The increase was mainly
due to higher production
in Germany, up 7.0%,
and France, up 6.5%,
year-on-year.
Five of the top six
producing nations
increased production by
more than 6. 0% compared
to January last year,
with Belgium up 10.1%,
supported by mild weather
conditions and lower
input costs.
EU milk production for the
12 months to January was
up 1.7% on the previous
comparable period.
US milk production
increased 2.9% in February
compared to the same
period the year prior.
The increase was mainly
due to larger herds, up
2.5%, or 217,000 head on
February last year.
Production for the Great
Plains states increased
4.1% year-on-year, driven
by higher volumes in
Texas, South Dakota and
Kansas, up 5.2%, 10.6% and
28.7%, respectively.
US milk production
for the 12 months to
February increased
3.2% 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,
EU and US monthly
exports increased.
Australia monthly
exports decreased
New Zealand dairy
exports increased 0.3%,
or 1,043 MT, in February
compared to the same
period the year prior.
The increase was mainly
due to higher export
volumes of WMP and MPC
& MPI, up 10.1% and 113.3%.
WMP exports to China
increased 16,369 MT, or
44.0%, on February last
year, and accounted for
38.5% of New Zealand
WMP exports for
the month.
Exports for the 12 months
to February were down
0.5%, or 16,824 M T,
on the previous
comparable period.
The decrease was mainly
due to lower export
volumes of WMP and SMP.
EU dairy exports
1
increased 3.2%, or
16,436 MT, in January
compared to the same
period the year prior.
The increase was mainly
due to higher export
volumes of fluid milk
products from Germany
and Poland, partially offset
by lower export volumes of
whey powder.
Exports for the 12 months
to January were up
3.5%, or 234,244 M T,
on the previous
comparable period.
The increase was mainly
due to higher export
volumes of fluid milk
products and SMP,
partially offset by lower
export volumes of lactose
and WMP.
US dairy exports
increased 12.6%, or
27,355 MT, in January
compared to the same
period the year prior.
The increase was mainly
due to higher export
volumes of SMP to Mexico,
butter which increased
185.2% year-on-year, and
whey powder, partially
offset by lower export
volumes of WPC and WPI.
Exports for the 12 months
to January were up 6.0%, or
169,978 MT, on the previous
comparable period.
The increase was mainly
due to higher export
volumes of cheese, butter,
and whey powder, partially
offset by lower exports of
SMP, WPC and WPI.
Australia dairy exports
decreased 2.0%, or
1,059 MT, in January
compared to the same
period the year prior.
The decrease was mainly
due to lower export
volumes of cheese,
partially offset by higher
export volumes of fluid
milk products.
Exports for the 12 months
to January were down
5.3%, or 37,908 M T,
on the previous
comparable period.
The decrease was mainly
due to lower export
volumes of SMP, whey
powder and butter,
partially offset by higher
export volumes of fluid
milk products.
New ZealandAustraliaEuropean UnionUSA
%%%%
%%
To view a chart that
illustrates year-on-year
changes in exports –
%
%
Change for February 2026
compared to February 2025
Change for January 2026
compared to January 2025
Change for January 2026
compared to January 2025
Change for January 2026
compared to January 2025
Change for the 12 months
to January 2026
Change for the 12 months
to January 2026
Change for the 12 months
to February 2026
Change for the 12 months
to January 2026
12.6
5.3
0.3
3.5
6.0
2.0
3.2
0.5
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 14.7%, or
29,980 MT, in January
compared to the same
period the year prior.
The decrease was mainly
due to lower import volumes
of SMP by Colombia and
Peru, and cheese by the
Dominican Republic.
Imports for the
12 months to January
were down 1.1%, or
27,413 MT, on the previous
comparable period.
The decrease was mainly
due to lower import
volumes of WMP by Brazil
and cheese to Brazil and
the Dominican Republic,
partially offset by higher
import volumes of SMP
and whey powder.
Asia (excluding China)
dairy import volumes
decreased 1.3%, or
5,580 MT, 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.
Imports for the 12 months
to November were up
1.8%, or 102,979 M T,
on the previous
comparable period.
The increase was mainly
due to higher import
volumes of cheese by
Korea and WMP by
Sri Lanka and Bangladesh,
partially offset by lower
import volumes of SMP
and lactose.
Middle East and Africa
dairy import volumes
1
decreased 36.1%, or
157,419 MT, in January
compared to the same
period the year prior.
The decrease was mainly
due to lower import
volumes of fluid milk
products and WMP by
Saudi Arabia and the
United Arab Emirates.
Imports for the 12 months
to January were down
10.2%, or 585,835 M T,
on the previous
comparable period.
The decrease was mainly
due to lower import
volumes of fluid milk
products and WMP by the
United Arab Emirates.
China dairy import
volumes decreased 14.0%,
or 39,913 MT, in February
compared to the same
period the year prior.
The decrease was mainly
due to lower import
volumes of SMP, down
11,749 MT on the prior
comparable period,
partially offset by higher
import volumes of cheese.
Imports for the 12 months
to February were down
1.0%, or 29,990 M T,
on the previous
comparable period.
The decrease was mainly
due to lower import
volumes of fluid milk
products and SMP, partially
offset by higher import
volumes of cheese and
whey powder.
Latin AmericaAsiaMiddle East & AfricaChina
1 Estimates are included for those countries that have not reported data.
%%%%
%%
Change for January 2026
compared to January 2025
Change for February 2026
compared to February 2025
Change for November 2025
compared to November 2024
Change for January 2026
compared to January 2025
Change for the 12 months
to January 2026
Change for the 12 months
to November 2025
Change for the 12 months
to January 2026
To view a chart that
illustrates year-on-year
changes in imports –
14.01.314.7
1.810.2
%
Change for the 12 months to
February 2026
1.0
36.1
1.1
%

To view a table that shows
detailed milk collections
in New Zealand and
Australia compared to the
previous season –
Season-to-date 1 Jul–28 Feb
compared to prior season
Season-to-date 1 Jun–28 Feb
compared to prior season
Season-to-date 1 Jun–28 Feb
compared to prior season
Season-to-date 1 Jun–28 Feb
compared to prior season
Increase for February 2026
compared to February 2025
Increase for February 2026
compared to February 2025
Increase for February 2026
compared to February 2025
Increase for February 2026
compared to February 2025
3.44.9
4.9
9.27.1
3.41.83.1
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 February
were 8.4 million kgMS,
3.4% higher than February
last season.
The increase was mainly
due to favourable weather
conditions, with high
rainfall in Northern Victoria,
and moderate rainfall
in Eastern Victoria and
Northwestern Tasmania,
supporting pasture growth.
Season-to-date collections
for Fonterra Australia are
78.4 million kgMS, 3.4%
above last season.
North Island milk
collections in February
were 75.5 million kgMS,
9.2% higher than February
last season.
The increase was mainly
due to favourable weather
conditions, supporting
higher soil moisture and
pasture growth above the
historical average, following
drought conditions in
February 2025.
Season-to-date collections
are 705.8 million kgMS,
1.8% above last season.
South Island milk
collections in February
were 67.7 million kgMS,
4.9% higher than February
last season.
The increase was mainly
due to favourable
pasture conditions, with
favourable weather across
consecutive months,
leading to soil moisture
in line with historical
averages, supporting
consistent pasture growth.
Season-to-date collections
are 512.6 million kgMS,
4.9% above last season.
Fonterra's New Zealand
collections for February
were 143.2 million kgMS,
7.1% above February
last season.
The increase was mainly
due to higher collections
in the North Island from
favourable weather
conditions, and continuing
momentum in the
South Island, supported by
stable soil conditions.
Season-to-date collections
are 1,218.3 million kgMS,
3.1% above last season.
%%
%%%%
Forecast milk collections for
the 2025/26 season
1,565M
kgMS
%%
Forecast Farmgate Milk Price
for the 2025/26 season
NZD
per
kgMS
9.40-
10.00
Outlook for
Fonterra in
New Zealand
The inclusion of off-GDT
sales is forecast to
contribute approximately
two cents per kgMS to
the Milk Price for the
entire 2025/2026 season.

%
%%
%
%
To view more
information, including
a snapshot of the rolling
year-to-date results –
%
6
GDT Price IndexNZD/USD Spot Rate
Mar 24Mar 25Jul 25Nov 25Mar 26Nov 24Jul 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
Escalating Middle East tensions disrupted financial markets
after joint US and Israeli airstrikes on Iranian military sites
prompted Iran to retaliate across the Gulf and via regional
proxies. Crude oil prices spiked amid Strait of Hormuz
supply risks, lifting inflation concerns, strengthening the
US dollar, and pressuring global equities and bonds as
investors demanded higher yields. The NZD/USD exchange
rate fell from 60 US cents to a low of 57.8 US cents,
before steadying to recover half of those losses. The NZD
remains vulnerable while geopolitical risk stays elevated,
threatening global growth, and the US–NZ interest rate
differential continues to favour the USD.
Fonterra GDT results
at trading event 400
17 March 2026:
The next trading event will be held on 7 April 2026. Visit www.globaldairytrade.info for more information.
Change in Fonterra’s
weighted average
product price from
previous event
0.2
Fonterra’s weighted
average product price

(USD/MT)
4,476
USD
Fonterra product
quantity sold on GDT
000’ MT
16.0
NORTH ASIA (INCLUDING CHINA)
SOUTH EAST ASIA
MIDDLE EAST AND AFRICA
LATIN AMERICA
OTHER
USD 3,704/MT
4.1
WMP
USD 7,602/MT
6.4
AMF
USD 7,000/MT
2.1
BUTTER
USD 3,544/MT
6.0
SMP
USD 4,925/MT
0.1
CHEDDAR
16,008
MT
Latest Auction
478,760
MT
Financial Year-to-Date

7
Our Performance
Fonterra completes
sale of Mainland
Group to Lactalis
On 31 March, Fonterra
Co-operative Group Ltd
completed the sale of
its global consumer and
associated businesses,
Mainland Group,
to Lactalis.
Chairman Peter McBride
says the completion of
the sale is a significant
milestone which sets the
Co-op up for the future.
“With the divestment
complete, Fonterra
can return capital to
its owners and focus
on growing further
through its core business
as a New Zealand
farmer-owned global
B2B dairy provider,” says
Mr McBride.
CEO Miles Hurrell
says “through our high
performing Ingredients
and Foodservice
businesses, we sell
innovative dairy products
to customers globally
under our NZMP™
and Anchor™ Food
Professionals brands.
“We can now focus our
resources, R&D spend,
and farmers’ capital
on continuing to grow
these businesses, which
generate the greatest
return for farmers’ milk.
“The completion of the
sale also signals the
start of our long-term
partnership with Lactalis.
Lactalis becomes one
of our most significant
Ingredients customers,
as we continue to
supply milk and other
products to the divested
businesses,” says
Mr Hurrell.
Capital return payment
As previously advised,
Fonterra will return
$3.2 billion of divestment
proceeds to farmer
shareholders and unit
holders via a $2.00 per
share capital return.
Fonterra can now
confirm the record date
for being eligible for the
capital return is 5.00
pm on 9 April 2026 and
the payment date is
14 April 2026.
As is standard practice,
the NZX has approved a
three-day administrative
trading halt in respect
of Fonterra's shares and
Fonterra Shareholders’
Fund units listed on the
NZX Main Board.
The trading halt will
apply from market open
on 8 April 2026 through
until the close of trading
on 10 April 2026. This
is to ensure all trades
have settled before the
record date and to allow
time to update Fonterra's
share register.
Financial outlook
Fonterra’s FY26
earnings guidance for
continuing operations
remains unchanged at
50-65 cents per share.
Fonterra continues to
target earnings to return
to FY25 levels by FY28,
offsetting the Mainland
Group divestment,
through focused
execution of its strategy.
The sale comprises:
• Fonterra’s global
Consumer business
and Consumer brands,
excluding the consumer
business in Greater
China where Fonterra
will continue to own the
Anchor brand;
• The integrated
Foodservice and
Ingredients business
in Oceania;
• The integrated
Foodservice business in
Sri Lanka;
• The Middle
East and Africa
Foodservice business.
The product supply
agreements between
Fonterra and Lactalis are:
• Raw Milk Supply
Agreement – Fonterra
to supply raw milk to
Lactalis for a minimum
term of 10 years, with
automatic renewal
until terminated.
• Global Supply
Agreement – Fonterra
to supply ingredients
and other products
(e.g. bulk cheese) to
Lactalis for a minimum
period of 6 years, with
automatic renewal
until terminated.

Our Co-op
8
Fonterra CEO
Miles Hurrell to
step down
On 16 March, Fonterra
Co-operative Group
Ltd announced that
Chief Executive
Officer Miles Hurrell
has resigned.
Chair Peter McBride
says that after a 25-year
career with Fonterra,
including eight years as
CEO, Miles has decided
that the time is right for
him to leave the Co-op.
“When he was appointed
CEO in 2018, Miles
was tasked with
leading a reset of the
business to turn around
Fonterra’s financial
performance and rebuild
farmers’ trust.
“Under Miles’ leadership
the team has done that
and more. From day
one, Miles was able to
unite the team under a
single purpose and drive
performance right across
the business, setting the
Co-op up for the future.
“On behalf of the Board,
I thank Miles for his
courageous leadership.
He has overseen a
significant strategic
reset, focused on
getting the Co-op back
to its core strengths. In
doing so he has helped
lift Fonterra’s financial
discipline and built the
strong foundations the
Co-op has today.
“I know I echo the
sentiment of farmers
when saying that Miles
will leave with sincere
thanks for his 25 years of
loyalty and best wishes
for the future,” says
Mr McBride.
Miles Hurrell says it
has been an incredible
privilege to have
a long career with
Fonterra which he has
enjoyed immensely.
“When I took the role of
CEO, I understood our
financial results are not
just numbers but the
livelihood of thousands
of New Zealand farming
families. I have always
felt a great sense of
responsibility to do
what’s right for farmers,
and I believe the
Co-op is now in a really
good place.
“While it’s not an easy
decision to step away,
the time is right for
both the Co-op and me
personally. Fonterra’s
entering the next
phase in its strategic
implementation, which
marks a natural turning
point for a new leader to
step in while I consider
what’s next for me.
“I know that the business
will be in good hands.
There’s an exceptional
team of people who will
carry the Co-op forward
and continue to drive
value for farmers,” says
Mr Hurrell.
Peter McBride says
Miles has a six month
notice period, which
enables an organised
leadership transition.
“Board and management
regularly discuss
succession as part
of good governance
practices. We are
confident we can run a
robust selection process
and appoint a new CEO
in the coming months,”
says Mr McBride.

Production
AustraliaAverage
United States
New ZealandEU
Jul 25Feb 26
Jan 26Dec 25Oct 25Sep 25Aug 25Apr 25Jun 25May 25Mar 25Nov 25
Liquid Milk (m Litres)
-200
0
1,200
800
1,000
400
600
200
Exports
Australia
United States
New ZealandEU
Apr 25Mar 25Feb 26Dec 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 26Dec 25Sep 25Oct 25Nov 25Jun 25Jul 25Aug 25Feb 26May 25
MT (000s)
-250
-150
-200
-50
-100
0
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 and 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 to November; Middle East & Africa and Latin America to January; China to February.
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)
February
2026
February
2025
Monthly
Change
Season-
to-Date
2025/26
Season-
to-Date
2024/25
Season-
to-Date
Change
Total Fonterra
New Zealand
143.2133.77.1%1,218.31,181.93.1%
North Island75.569.29.2 %705.8693.31.8%
South Island67.764.64.9%512.6488.64.9%
Australia8.48.23.4%78.475.83.4%
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 (%)
23 March
2026
$9.70 /
$9.40-$10.00
0.58210.589495%16%
20 February
2026
$9.50 /
$9.20-$9.80
0.59670.591195%15%
As at the most recent update to the 2025/26 season forecast Farmgate Milk Price
on 23 March 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 16% 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
23 March 2026 spot rate of 0.5821, the average NZD/USD conversion rate for the
2025 season would be 0.5894.
• Also shown for information are the equivalent measures at the date of the previous
forecast of the 2025/26 season Farmgate Milk Price on 20 February 2026
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 26Dec 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
(17 March 2026)
Year-to-Date

(From 1 August 2025)
Quantity Sold on GDT
(Winning MT)
16,008478,760
Change in Quantity Sold on GDT
over same period last year
2.9%3.0%
Weighted Average Product Price
(USD/MT)
4,4763,954
Change in Weighted Average
Product Price over same period last year
(0.8%)(3.4%)
Change in Weighted Average
Product Price from previous event
0.2 %-
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.