Global Dairy Update May 2026

• Fonterra releases FY26 Q3
Business Update
• Fonterra announces
opening 2026/27
Farmgate Milk Price
1
Global Dairy
UPDATE
• New Zealand, Australia, EU and
US monthly production increased
• New Zealand, Australia and US monthly
exports increased. EU monthly
exports decreased
• Latin American and China monthly
imports increased. Asia and Middle East
& Africa monthly imports decreased
• Fonterra’s New Zealand milk collections
for April were 123.6 million kgMS, 7.3%
above April last season
• Season-to-date collections are
1,489.4 million kgMS, 4.0% above
last season
• Dawn blessing marks start of Fonterra’s new butter
sheet build at Edgecumbe
Key Dates
1 June 2026
Start of the 2026/27 Season
31 July 2026
End of FY26 Financial Year
September 2026
FY26 Annual Results
Announcement
May 2026
For further details,
visit our website –

Change for April 2026
compared to April 2025
Change for April 2026
compared to April 2025
Change for April 2026
compared to April 2025
Change for March 2026
compared to March 2025
Change for the 12 months
to April 2026
Change for the 12 months
to April 2026
Change for the 12 months
to April 2026
Change for the 12 months
to March 2026
3.46.9
0.24.04.7
4.5
4.6
6.1
2
OUR MARKETS
Global Production
New Zealand,
Australia, EU
and US monthly
production increased
New Zealand milk
production increased
6. 9% in April 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 April was
up 4.6% on the previous
comparable period.
Fonterra New Zealand
collections are reported for
April, see page 5 for details.
Australia milk
production increased 6. 1%
in April compared to the
same period the year prior.
The increase was mainly
due to higher collections
in Victoria, up 5.1% on April
last year, despite rising
input costs and tightening
feed availability.
Australia milk production
for the 12 months
to April was down
0.2% on the previous
comparable period.
EU milk production1
increased 4.5% in March
compared to the same
period the year prior.
The increase was mainly
due to higher production in
Germany, up 6.8% year-on-
year and France, up 6.1%.
EU milk production for the
12 months to March was
up 4.0% on the previous
comparable period.
The increase was mainly
due to higher production
from Germany, France and
the Netherlands, up 4.4%,
4.2% and 5.6%, or 107.4m,
74 .3m and 61.1m kgMS,
respectively, on the prior
comparable period.
US milk production
increased 3.4% in April
compared to the same
period the year prior.
The increase was mainly
due to herd expansion,
with cow numbers up 2.1%
year on year (+193,000
head), supported by a 0.6%
year-on-year increase in
milk per cow.
The increase marks
12 consecutive months of
2.0% or higher year-on-
year increases.
US milk production
for the 12 months
to April increased
4.7% 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 16.3 %,
or 49,624 MT, in April
compared to the same
period the year prior.
The increase was mainly due
to higher export volumes of
WMP and SMP, up 34.0%
and 33.9%, respectively.
Total exports to China
increased 19,444 MT, or
18.8% year-on-year, with
WMP exports to China
lifting 58.3 %, or 15,638 M T.
Exports for the 12 months
to April were up 0.9%, or
30,456 MT, on the previous
comparable period.
The increase was mainly due
to higher export volumes
of WMP and supported by
butter, AMF, MPC and MPI.
EU dairy exports
1
decreased 10.5%, or
60,275 MT, in March
compared to the same
period the year prior.
The decrease was mainly
due to lower export
volumes of whey power
and lactose products, with
German lactose exports
down 36.7%. EU27 butter
exports were up 36.8%.
Exports for the 12 months
to March were up 1.2%, or
77,380 MT, on the previous
comparable period.
The increase was mainly due
to higher export volumes
of SMP, cultured products,
cheese and butter.
Export volumes of infant
formula, WMP and lactose
decreased year-on-year.
US dairy exports
continued to grow, up
9.8%, or 25,197MT, in March
compared to the same
period the year prior.
The increase was mainly due
to higher export volumes of
cheese, whey powder and
butter, with butter exports
up 86.6% on March 2025.
Export volumes of infant
formula, SMP, WPC and WPI
were lower.
Exports for the 12 months
to March were up 8.4%, or
234,422, on the previous
comparable period.
The increase was mainly due
to higher export volumes
of cheese, butter and whey
powder partially offset by
lower export volumes of
SMP, WPC and WPI.
Australia dairy exports
increased 1.5%, or 922 M T,
in March compared to the
same period the year prior.
The increase was mainly
due to higher export
volumes of fluid milk
products, up 14.3%
year-on-year, partially
offset by lower export
volumes of WMP.
Exports for the 12 months
to March were down
3.5%, or 24,463 M T,
on the previous
comparable period.
The decrease was driven
by lower volumes of
SMP, whey powder,
butter, and other powder.
Fluid milk products and
infant formula export
volumes increased.
New ZealandAustraliaEuropean UnionUSA
%%%
%%
To view a chart that
illustrates year-on-year
changes in exports –
%
Change for March 2026
compared to March 2025
Change for March 2026
compared to March 2025
Change for March 2026
compared to March 2025
Change for the 12 months
to March 2026
Change for the 12 months
to March 2026
Change for the 12 months
to March 2026
9.8
3.5
1.2
8.4
1.5
10.5
1 Excludes UK.
%
%
Change for April 2026
compared to April 2025
Change for the 12 months
to April 2026
16.3
0.9

4
OUR MARKETS
Global Imports
Latin America and
China monthly
imports increased.
Asia and Middle East
& Africa monthly
imports decreased
Latin America dairy
import volumes
increased 1.9%, or 4,245 M T,
in March compared to the
same period the year prior.
The increase was mainly
due to higher import
volumes of WMP and
cheese, partially offset by
lower import volumes of
fluid milk products.
Imports for the 12 months
to March were down
1.5%, or 38,188 M T,
on the previous
comparable period.
The decrease was mainly
due to lower import
volumes of WMP, cheese
and lactose, partially offset
by phosphoaminolipids.
Asia (excluding China)
dairy import volumes
decreased 6.1%, or
27,905 MT, in February
compared to the same
period the year prior
The decrease was mainly
due to lower volumes
of whey powder, WMP,
lactose and cheese.
Imports for the 12 months
to February were up
4.6%, or 261,207 M T,
on the previous
comparable period.
The increase was
mainly due to higher
import volumes of
phosphoaminolipids,
partially offset by lower
import volumes of whey
powder and lactose.
Middle East and Africa
dairy import volumes
1
decreased 32.2%, or
137,788 MT, in February
relative to the prior
comparable period.
The decrease was mainly
due to lower import
volumes of SMP and WMP.
Import volumes into Algeria
were down 47.8% on the
prior comparable period.
Imports for the 12 months
to February were down
10.1%, or 537,546 M T,
on the previous
comparable period.
The decrease was mainly
due to lower import
volumes of fluid milk
products and WMP.
China dairy import
volumes increased by
10.2%, or 26,015 MT, in April
compared to the same
period the year prior.
The increase was mainly
due to higher import
volumes of WMP from
New Zealand, partially
offset by lower import
volumes of infant formula
and lactose.
Imports for the 12 months
to April were down 1.5%, or
42,781 MT, on the previous
comparable period.
The decrease was mainly
due to lower import
volumes of cheese and
WMP, partially offset by
higher import volumes fluid
milk products and SMP.
Latin AmericaAsiaMiddle East & AfricaChina
1 Estimates are included for those countries that have not reported data.
%%%%
%%
Change for March 2026
compared to March 2025
Change for April 2026
compared to April 2025
Change for February 2026
compared to February 2025
Change for February 2026
compared to February 2025
Change for the 12 months
to March 2026
Change for the 12 months
to February 2026
Change for the 12 months
to February 2026
To view a chart that
illustrates year-on-year
changes in imports –
10.26.11.9
4.610.1
%
Change for the 12 months to
April 2026
1.5
32.2
1.5
%

To view a table that shows
detailed milk collections
in New Zealand and
Australia compared to the
previous season –
Season-to-date 1 Jun–30 Apr
compared to prior season
Season-to-date 1 Jun–30 Apr
compared to prior season
Season-to-date 1 Jun–30 Apr
compared to prior season
Increase for April 2026
compared to April 2025
Increase for April 2026
compared to April 2025
Increase for April 2026
compared to April 2025
3.8
4.9
10.77.3
3.44.0
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 Island
New Zealand Milk Collections
North Island milk
collections in April were
63.9 million kgMS,
10.7% higher than April
last season.
The increase is mainly
due to favourable
pasture conditions and a
low comparable month,
following drier soil
conditions in April 2025.
Season-to-date
collections are
846.7 million kgMS, 3.4%
above last season.
South Island milk
collections in April
were 59.7 million kgMS,
3.8% higher than April
last season.
The increase was mainly
due to favourable
weather conditions as
pasture growth has
begun to slow towards
the end of the season.
Season-to-date
collections are
642.8 million kgMS, 4.9%
above last season.
Fonterra's New
Zealand collections for
April were 123.6 million
kgMS, 7.3% higher than
April last season.
The increase is mainly
due to favourable
weather conditions,
improved pasture
conditions in the North
Island, and a weak
comparable period.
Season-to-date
collections are
1,489.4 million kgMS,
4.0% 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
9.60-
9.80
Forecast Farmgate Milk Price
for the 2026/27 season
NZD
per
kgMS
8.00-
11.00
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
May 24May 25Sep 25Jan 26May 26Jan 25Sep 24
900
1,000
1,100
1,400
1,200
1,300
0.54
0.56
0.58
0.60
0.64
0.62
Price Index
NZD / USD
OUR MARKETS
Fonterra Global Dairy Trade Results
Fonterra GDT sales
by destination:
Dairy commodity prices and New Zealand
dollar trend
Risk sentiment oscillates as investors await further
progress to the US-Iran impasse which has developed
following the initial cease fire agreement of early
April, whereas central bankers weigh the evolving
risks of slowing growth and rising inflation outcomes,
and future expectations. While equity markets have
recovered their losses, and more, and bond yields
continue to rise, foreign exchange markets remain
largely sidelined. The NZD/USD exchange rate was
contained in a comparatively tight range between
58 and 60 US cents.
Fonterra GDT results
at trading event 404
19 May 2026:
The next trading event will be held on 2 June 2026. Visit www.globaldairytrade.info for more information.
Change in Fonterra’s
weighted average
product price from
previous event
1.1
Fonterra’s weighted
average product price

(USD/MT)
4,351
USD
Fonterra product
quantity sold on GDT
000’ MT
10.6
NORTH ASIA (INCLUDING CHINA)
SOUTH EAST ASIA
MIDDLE EAST AND AFRICA
LATIN AMERICA
OTHER
USD 6,344/MT
1.8
AMF
USD 5,830/MT
2.5
BUTTER
USD 3,637/MT
0.1
SMP
USD 3,770/MT
0.8
WMP
USD 4,560/MT
1.1
CHEDDAR
10,575
MT
Latest Auction
525,286
MT
Financial Year-to-Date

7
Our Performance
Fonterra has released
its FY26 Q3 business
update, demonstrating
sustained performance
and progress on the
Co-op’s strategy, with
year to date Total
Group operating
profit of $1.8 billion, up
$103 million on this time
last year.
The Co-operative has
lifted and narrowed
its full year forecast
earnings range to
60-70 cents per share,
due to confidence in
the Co-op’s contracted
sales position for
FY26 and our ability to
navigate ongoing supply
chain disruption.
The forecast Farmgate
Milk Price midpoint
for the current season
is unchanged at
$9.70 per kgMS, with
the range narrowing to
$9.60-$ 9.80 per kgMS.
The Co-operative
has also announced
an opening forecast
Farmgate Milk Price for
the 2026/27 season of
$9.75 with a range of
$8.00-$11.00 per kgMS
to reflect potential
impacts across the
season from ongoing
geopolitical risks and
inflationary pressures.
CEO Richard Allen
says, “We’ve delivered
another strong result.
Milk production is up
considerably this season,
and despite disruption
in global supply chains,
our sales book is well
contracted and our
shipping volumes are
strong, with the highest
third quarter shipment
volumes in a decade.
“As we look ahead
to next season, we
expect milk collections
to remain high, in line
with this season. Our
in-market sales teams
are anticipating solid
demand from across the
regions despite potential
volatility, and this is
reflected in our opening
forecast range."
Business performance
A disciplined focus on
strategy has driven a
Total Group year to
date operating profit
of $1.8 billion, up from
$1.7 billion the prior year,
and profit after tax of
$1.1 billion, equivalent to
65 cents per share.
Adjusting for Mainland’s
result to reflect the
Co-operative's underlying
business, the Co-op
delivered $946 million
profit after tax,
equivalent to earnings
per share of 57 cents, up
from 53 cents this time
last year.
The Ingredients business
benefited from ongoing
protein demand in the
US and Europe, while
Foodservice continued to
achieve both volume and
margin growth.
Strategy execution
Mr Allen says the
Co-op is committed to
delivering on its strategy
and growing value for
farmer owners as a
global B2B dairy provider.
“During the quarter, we
completed the sale of
Mainland Group and
returned $3.2 billion to
shareholders and unit
holders. This marked a
significant step in the
delivery of our strategy,
with the Co-operative
firmly focused on
growing our high-value
Ingredients and
Foodservice businesses.
“We advanced work
on our new $35 million
pastry butter sheet
capacity at Edgecumbe,
reached product
validation stage on our
$75 million Studholme
protein hub, and made
good progress on
Fonterra releases
FY26 Q3
BusinessUpdate
1.8
Total Group
YTD Operating Profit
$103 million relative
to prior year
57
Underlying
YTD Earnings per Share
from 53 cents
60-70
FY26 Full Year Forecast
Earnings Range per Share
from 50-65 cents
NZDcentscentsbillion

8
Our Performance
our $75 million butter
expansion at Clandeboye
and $150 million UHT
cream build at Edendale.
“I’m also pleased to
announce that we’ll be
progressing with the
planned expansion of
our organic business
into the South Island,
following strong interest
from farmers wanting
to join our successful
organic programme.
“Our forecast Organic
Milk Price range for
the current season is
$13.90-$ 14.10 per kgMS,
with a record midpoint
of $14.00 per kgMS. Our
opening forecast for
the 2026/27 season is
$13.00-$15.00 per kgMS,
also with a $14.00 per
kgMS midpoint,
reflecting the value
customers see in our
organic farmers’ milk.
“These initiatives all
reflect real momentum in
the Co-op’s performance
as we head into the
final quarter of the
financial year.”
Outlook
“Looking ahead, Fonterra
has strong foundations
and a clear strategy to
deliver value through our
global Ingredients and
Foodservice businesses,”
says Mr Allen.
“Our full year earnings
guidance reflects the
strong shipment volumes
expected in the final
quarter of the year.
“However, we
acknowledge the
uncertainty caused by
the ongoing conflict in
the Middle East. Like
our farmers, and others
around the world,
we are experiencing
cost inflation and
shipping disruptions.
“We are confident that
our deep relationships
with customers and
logistics partners
will continue to
help us navigate
these challenges.”

Our Co-op
9
Dawn blessing marks
start of Fonterra’s
new butter sheet
build at Edgecumbe
Local iwi Ngāti Awa
Ki Rangitaiki joined
employees for a
dawn blessing on
14 April to mark the
start of construction
on Fonterra’s new
$35 million pastry
butter sheet expansion
at Edgecumbe.
Edgecumbe Site
Operations Manager,
Lydia King, says it means
a lot to have the local iwi
carry out the ceremony.
“We are all excited
about the activities and
investment happening
here at Edgecumbe.
Our iwi representatives
have whānau members
who work at the site, so
it’s meaningful to see
the strong connections
we have with the
local community.”
Once complete,
Edgecumbe’s pastry
butter sheet capacity
will double, helping the
Co-op meet growing
demand from China,
Mexico and Southeast
Asia for laminated
bakery products, such
as croissants and
puff pastry.
The expansion supports
regional employment,
with the new line
expected to create
four new roles on site,
alongside opportunities
for local contractors
during the build phase.
“This is a positive step
forward for Edgecumbe,
and it’s rewarding to
see the benefits of the
investment flowing
through to our people
and the local community,”
says King.
This expansion is part
of the Co-op's strategy
to use its farmers’ milk
in high value products
that support growth and
deliver strong returns for
farmer shareholders.
This is the Co-op’s fourth
major investment to
increase manufacturing
capacity announced
in the past 18 months,
following the Clandeboye
butter plant expansion,
the Edendale UHT cream
plant build and the
Studholme advanced
proteins hub build.
“These projects show
our progress in building
a more resilient and
flexible manufacturing
network that allows us
to allocate more milk
to foodservice and non
reference ingredients
products and strengthen
the Co-op's product mix,”
says King.
Construction is
expected to take around
12 months, with the first
product expected to
come off the line in 2027.

Production
AustraliaAverage
United States
New ZealandEU
Jul 25Feb 26
Jan 26Dec 25Oct 25Sep 25Aug 25Apr 26Jun 25May 25Mar 26Nov 25
Liquid Milk (m Litres)
-200
0
1,200
800
1,000
400
600
200
Exports
Australia
United States
New ZealandEU
Apr 26Mar 26Feb 26Dec 25Nov 25Oct 25Sep 25Aug 25Jul 25Jun 25May 25Jan 26
MT (000
s
)
-90
-60
-30
0
90
120
60
30
150
Average
Imports
Middle East & AfricaLatin America
AsiaChina
Apr 26Mar 26Jan 26Dec 25Sep 25Oct 25Nov 25Jun 25Jul 25Aug 25Feb 26May 25
MT (000s)
-250
-100
-50
-150
-200
0
100
50
Average
10

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 to March; New Zealand, US and Australia to April.
NOTE: Data for EU, US and Australia to March; New Zealand to April.
NOTE: Data for Asia and Middle East & Africa to February; and Latin America to March; China to April.
SOURCES: Government milk production statistics (DCANZ, Dairy Australia, Eurostat, USDA)/GTA trade data/Fonterra

11

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)
April
2026
April

2025
Monthly
Change
Season-
to-Date
2025/26
Season-
to-Date
2024/25
Season-
to-Date
Change
Total Fonterra
New Zealand
123.6115.27.3%1,489.41,432.04.0%
North Island63.957.710.7%846.7819.23.4%
South Island59.757.53.8%642.8612.84.9%
2025/26 season
Forecast Farmgate
Milk Price
(FGMP) update
2026/27 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 (%)
28 May
2026
$9.70 /
$9.60-$9.80
0.59010.590595%12%
23 March
2026
$9.70 /
$9.40-$10.00
0.58210.589495%16%
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 (%)
28 May
2026
$9.75 /
$8.00-$11.00
0.59010.592346%8%
As at the most recent update to the 2025/26 season forecast Farmgate Milk Price on 28 May 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 12% 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 28 May 2026 spot rate of 0.5901, the
average NZD/USD conversion rate for the 2025/26 season would be 0.5905.
• Also shown for information are the equivalent measures at the date of the previous forecast of the 2025/26 season
Farmgate Milk Price on 23 March 2026.
For the opening forecast Farmgate Milk Price for the 2026/27 season announced on 28 May 2026:
• Fonterra had hedged approximately 46% of the full year forecast USD cash flows related to the 2026/27 season
Farmgate Milk Price.
• Of that 46%, approximately 8% was hedged with foreign exchange options which had not yet expired or
been exercised.
• If the remaining 54% of the forecast USD cash flows were to be hedged at the 28 May 2026 spot rate of 0.5901, the
average NZD/USD conversion rate for the 2026/27 season would be 0.5923.
1 Hedged percentages shown are as at the most recent month end prior to announcement date.

Weighted Average PriceQuantity Sold
Nov 25Oct 25Aug 25May 26Sep 25Feb 26Mar 26Dec 25Apr 26Jun 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
(19 May 2026)
Year-to-Date

(From 1 August 2025)
Quantity Sold on GDT
(Winning MT)
10,575525,286
Change in Quantity Sold on GDT
over same period last year
(13.4%)0.4%
Weighted Average Product Price
(USD/MT)
4,3513,987
Change in Weighted Average
Product Price over same period last year
(10.4%)(4.1%)
Change in Weighted Average
Product Price from previous event
1.1%-
12

Supplementary Information

13
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.