Global Dairy Update June 2026

• Fonterra is strengthening its Foodservice presence in
China with the launch of a new cream for professional
bakeries at Bakery China 2026 in Shanghai
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
• China and Latin America imports
increased. Asia and Middle East & Africa
monthly imports decreased
• Fonterra’s New Zealand milk collections
for the season ended 31 May were
1,570.8 million kgMS, 4.1% above
last season
• New management structure confirmed
Key Dates
31 July 2026
End of FY26 Financial Year
September 2026
FY26 Annual Results Announcement
June 2026

Change for May 2026
compared to May 2025
Change for May 2026
compared to May 2025
Change for April 2026
compared to April 2025
Change for April 2026
compared to April 2025
Change for the 12 months
to May 2026
Change for the 12 months
to May 2026
Change for the 12 months
to April 2026
Change for the 12 months
to April 2026
4.15.0
0.24.34.7
4.2
4.5
6.1
2
OUR MARKETS
Global Production
New Zealand, Australia,
EU and US monthly
production increased
New Zealand milk
production increased
by 5.0% in May compared
to the same month 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.
On a 12-month rolling
basis, New Zealand milk
production continued its
growth, up 4.5% on the
prior comparable period.
Fonterra New Zealand
collections are reported for
May, see page 5 for details.
Australia milk
production increased 6. 1%
in April compared to the
same period the year prior.
Rainfall was lower in
April across many dairy
regions impacting water
storage. Water and feed
prices increased.
Australia milk production
for the 12 months to April
was largely flat, down
0.2% on the previous
comparable period.
EU milk production1
was 4.2% higher in April
compared to the same
period the year prior.
The increase was driven
by higher production in
northwestern Europe, with
Germany, Belgium and
the Netherlands reporting
significant increases.
High levels of production
may abate through the
Northern hemisphere
summer due to hot
dry conditions.
EU milk production for
the 12 months to April was
up 4.3% on the previous
comparable period.
US milk production
increased 4.1% in May
compared to the same
period the year prior.
Production continues to
grow, with the milking
herd nearing its highest
level in 35 years, driven by
strong gains in California
and Wisconsin.
US milk production for the
12 months to May 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, EU
and US monthly
exports increased.
Australia monthly
exports decreased
New Zealand dairy
exports continued to grow
up 16.3 %, or 49,477 MT, in
May compared to the same
period the year prior.
Higher exports of WMP,
SMP and butter drove the
increase, with WMP up
43%, or 43,150 MT. Fluid milk
products declined 14.8%,
or 6,626 M T.
Exports for the 12 months
to May were up 2.3 %, or
82,250 MT, on the prior
comparable period.
The increase was mainly due
to higher export volumes
of WMP and supported by
butter, MPC and MPI.
EU dairy exports
1
were
2.0% up, or 11,887 MT, in
April relative to the same
month the year prior.
Higher export volumes of
cheese and butter drove
the increase, up 6.5% and
34.4%, respectively. The
increase was mainly driven
by Germany, France and
the Netherlands.
Exports for the 12 months
to April were up 2.6%, or
170,960 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 expand
strongly up 39,000 MT, or
16.6%, in April relative to the
same month the year prior.
The increase was mainly due
to higher export volumes of
cheese, whey powder and
butter, with butter exports
up 104.1% on April 2025.
Export volumes of lactose,
MPC and MPI, WPC and
WPI were lower.
Exports for the 12 months
to April were up 10.0%, or
279,462 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 export volumes of
SMP, WPC and WPI.
Australia dairy exports
declined 4.6%, or 2,301 M T,
in April compared to the
same period the year prior.
Lower volumes of WMP,
SMP and other powders
drove the decline, with
total export volumes
across the three categories
down 3,520 M T.
Exports for the 12 months
to April were down 3.3%, or
23,177 MT, 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 April 2026
compared to April 2025
Change for April 2026
compared to April 2025
Change for April 2026
compared to April 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
16.6
3.3
2.6
10.0
4.6
2.0
1 Excludes UK.
%
%
Change for May 2026
compared to May 2025
Change for the 12 months
to May 2026
16.3
2.3

4
OUR MARKETS
Global Imports
China and Latin
America imports
increased. Asia
and Middle East
& Africa monthly
imports decreased
Latin America dairy
import volumes
increased 2.3%, or 4,956 M T,
in March compared to the
same period the year prior.
The increase was driven by
higher volumes of WMP
and cheese offset by
lower volumes of SMP and
fluid milk.
Imports for the 12 months
to March were down 1.4%,
or 36,074 MT, on the prior
comparable period.
The decrease was mainly
due to lower import
volumes of WMP, cheese
and fluid milk products.
Asia (excluding China)
dairy import volumes
declined 0.8%, or 3,898 M T,
in March compared to the
same period the year prior.
SMP, whey powder and
lactose volumes increased,
while fluid and fresh milk,
WMP and butter declined.
Imports for the 12 months
to March were up 3.9%,
or 22,737 MT, on the prior
comparable period.
The increase was
mainly due to higher
import volumes of
phosphoaminolipids,
partially offset by lower
import volumes of
whey powder.
Middle East and
Africa dairy import
volumes
1
decreased
27.3%, or 115,692 MT, in
March relative to the prior
comparable period.
The decrease was mainly
due to lower import
volumes of SMP and WMP.
Imports for the 12 months
to March were down
10.8%, or 566,527 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 declined
moderately by 1.2%, or
2,937 MT, in May compared
to the same period the
year prior.
The decrease was driven
by lower import volumes
of infant formula and fluid
milk products.
Imports for the 12 months
to May were down 1.7%, or
51,457 MT, on the previous
comparable period.
The decrease was mainly
due to lower import
volumes of fluid milk
products and SMP.
Latin AmericaAsiaMiddle East & AfricaChina
1 Estimates are included for those countries that have not reported data.
%%%%
%%
Change for March 2026
compared to March 2025
Change for May 2026
compared to May 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
To view a chart that
illustrates year-on-year
changes in imports –
1.20.82.3
3.910.8
%
Change for the 12 months
to May 2026
1.7
27.3
1.4
%

To view a table that shows
detailed milk collections
in New Zealand and
Australia compared to the
previous season –
For the 2025/26 Season
compared to prior season
For the 2025/26 Season
compared to prior season
For the 2025/26 Season
compared to prior season
Increase for May 2026
compared to May 2025
Increase for May 2026
compared to May 2025
Increase for May 2026
compared to May 2025
4.1
4.8
7.75.8
3.54.1
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 Island
New Zealand Milk Collections
North Island milk
collections in May were
39.3 million kgMS,
7.7% higher than May
last season.
The increase is mainly
due to favourable
pasture conditions
and a low comparable
month, following drought
conditions in the lower
North Island in 2025.
The 2025/26 season milk
collections were finalised
at 885.9 million kgMS,
3.5% above prior season.
South Island milk
collections in May were
42.2 million kgMS,
4.1% higher than May
last season.
The increase was mainly
due to favourable
weather conditions
although pasture growth
has begun to slow
towards the end of
the season.
The 2025/26 season milk
collections were finalised
at 684.9 million kgMS,
4.8% above prior season.
Fonterra's New
Zealand collections for
May were 81.5 million
kgMS, an increase of
5.8% on May 2025.
Favourable pasture
growing conditions
meant that collections
were the highest on
record for the month
of May.
The 2025/26 season milk
collections were finalised
at 1,570.8 million kgMS,
4.1% above prior season.
%%
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%

%
%%
%
%
To view more
information, including
a snapshot of the rolling
year-to-date results –
%
6
GDT Price IndexNZD/USD Spot Rate
Jun 24Jun 25Oct 25Feb 26Jun 26Feb 25Oct 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
Despite an Memorandum of Understanding being signed
between Iran and the US initiating a fresh 60-day cease
fire, investor sentiment and risk appetite remained mixed
as investors assessed the situation as still being fragile and
this resulted in renewed safe-haven demand for the USD.
Furthermore, Kevin Warsh presided over his first meeting
of the Federal Open Market Committee as its Chairman,
delivering a no-nonsense approach to monetary policy
and reiterating the importance of the 2% inflation target –
financial markets moved quickly to price increased risks of
US interest rate hikes in 2026 further supporting the USD.
The NZD/USD exchange rate declined to 57 US cents.
Fonterra GDT results
at trading event 406
16 June 2026:
The next trading event will be held on 7 July 2026. Visit www.globaldairytrade.info for more information.
Change in Fonterra’s
weighted average
product price from
previous event
1.8
Fonterra’s weighted
average product price

(USD/MT)
4,120
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 4,471/MT
3.2
CHEDDAR
USD 6,601/MT
1.0
AMF
USD 3,509/MT
3.0
SMP
USD 5,834/MT
1.8
BUTTER
USD 3,590/MT
3.1
WMP
Latest Auction
547,318
MT
10,627
MT
Financial Year‑to‑Date

7
Our Performance
Fonterra is
strengthening
its Foodservice
presence in China
with the launch of
a new cream for
professional bakeries
at Bakery China 2026
in Shanghai
The launch supports the
Co-operative’s strategy
to deliver end-to-end
value for farmer owners
and builds on Fonterra’s
broader portfolio of
high-quality dairy
solutions, giving customers
flexibility to choose what
works best for their
specific applications.
Anchor™ Essence Cream
has been developed
to meet fast growing
demand in the China
market region and expands
Fonterra’s offering with
another new option for
professional bakers.
Designed specifically
for professional use, the
cream delivers a light,
smooth texture and reliable
performance, perfect
for cake fillings and soft
bakery products, while
responding to growing
demand for simple and
affordable ingredients.
Fonterra President of
Global Foodservice,
Teh han Chow, says it’s
particularly meaningful to
return to Bakery China with
a new innovation tailored
to customer needs.
“It’s great to be back at
Bakery China, connecting
with our customers and
partners in person and
showcasing what’s next,”
he says. “The launch of
Anchor™ Essence Cream
is a strong example of
how we’re innovating with
purpose – bringing high
performing solutions to
meet the evolving needs of
China’s bakery market.”
The new cream builds on
the success of Anchor™
Easy Bakery Cream,
launched in China nearly
two years ago.
Anchor™ Easy Bakery
Cream is another example
of targeted product
innovation. Developed
specifically for China’s
rapidly expanding mid-tier
bakery segment, Anchor™
Easy Bakery Cream delivers
reliable performance at a
competitive price for mass
market customers. In its
first full year, the cream
exceeded volume, revenue
and margin targets in the
1L format, with continued
strong performance
following expansion into a
10L format.
Running from 20–23
May, Bakery China is
Asia Pacific’s largest and
most influential bakery
and patisserie expo,
bringing together more
than 2,000 exhibitors and
hundreds of thousands of
professional visitors from
across the industry.
Fonterra is once again
took centre stage at the
event, showcasing the
scale and capability of its
Foodservice business in
Greater China, alongside
its full range of bakery
solutions, including cream,
cream cheese, butter
and cheese.
Chow says China remains
an important market for
the Co -op and a key driver
of high value demand for
New Zealand dairy.
“Foodservice is a high-value
channel for Fonterra, and
Greater China is one of
our most strategic growth
markets,” says Chow. “The
continued momentum
we’re seeing reflects the
long term confidence
customers place in our
business, our products
and our ability to perform
at scale.
“Chinese consumers are
increasingly prioritising
health, transparency
and natural ingredients,
particularly in bakery and
dessert occasions with
many consumers willing to
pay a premium for natural
dairy products.”
In a first for the China
market, the new Anchor™
Essence cream carries
the FernMark Grass-Fed
logo – making it the first
dairy product in market
to do so. The logo helps
consumers and customers
to identify products
containing dairy from a
New Zealand grass-fed
source that meets the
New Zealand Grass-Fed
standard, helping bakeries
strengthen consumer
confidence, while helping
them stand out in
the market.
“New Zealand provenance
and grass fed production
really matters in this
market,” says Chow.
“Trusted New Zealand
origin and consistent
product performance
help our customers create
higher quality products
that meet changing
consumer expectations.”
Bakery China is a key
platform for Fonterra to
connect with customers,
build and strengthen
partnerships and showcase
our existing and new
products to the industry.

Our Co‑op
8
New management
structure confirmed
Fonterra Co-operative
Group Ltd announced
permanent changes
to its leadership
structure, following the
interim appointments
announced in April 2026.
CEO Richard Allen says
the Co-op is evolving
from a channel-led
to a market-led
leadership structure to
accelerate progress on
strategic delivery and
value growth.
“Our channel-led
approach has served
us well in establishing
momentum in our B2B
focused strategy, and the
time is right to now make
this market-led shift.
“With the divestment
of Mainland Group
complete, this structure
will deliver our next era
of customer-led growth
and innovation across our
global Ingredients and
Foodservice channels.
“Through our new
leadership structure,
we’ll have a single point
of sales accountability
in each market for
both Ingredients
and Foodservice
performance, supported
by a global growth and
strategy team tasked
with ensuring our
farmers’ milk accesses
the highest value
demand globally, both
now and into the future,”
says Mr Allen.
The new
appointments are:
• Teh-han Chow, CEO
Greater China –
accountable for leading
Fonterra’s Ingredients
and Foodservice
businesses across
Greater China.
• Gaby Amade,
President Global
Markets – accountable
for leading our
Ingredients and
Foodservice businesses
in Oceania, Americas,
Southeast Asia, Japan,
Middle East and Europe.
• Elisa Giusti, Chief
Growth and Strategy
Officer - accountable
for developing
integrated market,
product and group
strategies, portfolio
optimisation, innovation,
and global new
business development.
“Our strategy is
unchanged and builds
on the Co-op’s strong
foundations. This
reorganisation enhances
our pace of delivery,
focus and accountability,”
says Mr Allen.
Elisa Giusti’s appointment
was effective from
15 June, the remainder
of the structure will
take effect from
3 August 2026.

Production
AustraliaAverage
United States
New ZealandEU
Jul 25Feb 26
Jan 26Dec 25Oct 25Sep 25Aug 25Apr 26Jun 25May 26Mar 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 26Jan 26
MT 000s
-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 26
MT (000s)
-250
-100
-50
-150
-200
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 Australia to April; New Zealand and US to May.
NOTE: Data for EU, US and Australia to April; New Zealand to May.
NOTE: Data for Asia, Middle East & Africa and Latin America to March; China to May.
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 Collection1
(million kgMS)
May
2026
May

2025
Monthly
Change
2025/26
Season
2024.25
Season
Season
Change
Total Fonterra
New Zealand
81.577.05.8%1,570.81,509.04.1%
North Island39.336.47.7%885.9855.73.5%
South Island42.240.64.1%684.9653.44.8%
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
Hedged2 (%)
Foreign
Exchange
Option Cover
Remaining
in Hedged
Amount2 (%)
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
Hedged2 (%)
Foreign
Exchange
Option Cover
Remaining
in Hedged
Amount2 (%)
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 Numbers have been rounded so may not appear to add or multiply.
2 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 26Jul 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
(16 June 2026)
Year-to-Date

(From 1 August 2025)
Quantity Sold on GDT
(Winning MT)
10,627547,318
Change in Quantity Sold on GDT
over same period last year
(15.1%)0.8%
Weighted Average Product Price
(USD/MT)
4,1203,994
Change in Weighted Average
Product Price over same period last year
(9.7%)(4.3%)
Change in Weighted Average
Product Price from previous event
(1.8%)-
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.