Global Dairy Update August 2026

• Fonterra cream cheese just the right mix for
Japanese bakers
1
Global Dairy
UPDATE
• New Zealand, Australia, EU and US
monthly production increased
• New Zealand, Australia and EU monthly
exports increased. US monthly
exports decreased
• Latin America, Asia, Middle East & Africa
and China monthly imports decreased
• Fonterra’s New Zealand milk collections
for July were 22.4 million kgMS, 8.0%
above July last season
• Season-to-date collections are
40.2 million kgMS, 7.4% above
last season. Collections at this time of
the season typically represent less than
3% of the full season forecast
• Fonterra expands customer innovation capability
in Chengdu
• We're reviewing the
GDU and want your
feedback. Complete
this short survey to
tell us what you find
most valuable and what
you would like to see
more of
Key Dates
24 September 2026
FY26 Annual Results Announcement
12 November 2026
Fonterra Co-operative Group Annual Meeting
August 2026
Have your say –

Change for July 2026
compared to July 2025
Change for July 2026
compared to July 2025
Change for May 2026
compared to May 2025
Change for June 2026
compared to June 2025
Change for the 12 months
to July 2026
Change for the 12 months
to July 2026
Change for the 12 months
to May 2026
Change for the 12 months
to June 2026
2.27.9
0.54.53.2
1.4
4.5
6.0
2
OUR MARKETS
Global Production
New Zealand, Australia,
EU and US monthly
production increased
New Zealand milk
production increased
by 7.9% in July compared
to the same period the
year prior.
The increase was mainly
due to higher collections
in the North Island from
favourable pasture
conditions, and abundant
supplement feed.
New Zealand milk
production for the
12 months to July
increased 4.5% on the prior
comparable period.
Fonterra New Zealand
collections are reported for
July, see page 5 for details.
Australia milk production
increased 6. 0% in May
compared to the same
period the year prior.
The increase was mainly
due to higher production
in Victoria, up 6. 7% year on
year, with all regions except
South Australia recording
higher collections.
Rainfall was above
average for most of
eastern Australia, but drier
conditions in northern
regions kept demand for
feed elevated.
Australia milk production
for the 12 months
to May increased
0.5% on the previous
comparable period.
EU milk production1
increased 1.4% in June
compared to the same
period the year prior.
The increase was mainly
due to higher production
in Germany and the
Netherlands, up 5.2% and
11.4%, respectively.
EU milk production for
the 12 months to June was
up 4.5% on the previous
comparable period.
The increase was mainly
due to higher production in
Germany, up 151.6m kgMS
or 6. 3%, with France and
the Netherlands up 4.5%
and 7.0%, respectively.
US milk production
increased 2.2% in July
compared to the same
period the year prior.
The increase was due to
herd growth, with the US
herd up 185,000 head, or
2.0%, on July last year. Yields
are also higher, with milk
volumes per cow up 0.2%
on July 2025.
US milk production for the
12 months to July increased
3.2% on the previous
comparable period.
The increase was mainly
due to higher production
in California, Kansas
and Texas with average
year-on-year production
increases of 3.5%, 23.0%
and 5.1%, respectively, for
the last 12 months.
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 EU monthly exports
increased. US monthly
exports decreased
New Zealand dairy
exports increased 5.5%, or
14,782 MT, in July compared
to the same period the
year prior.
The increase was mainly
due to higher export
volumes of cheese and
WMP, supported by casein
and whey powder.
Exports for the 12 months
to July were up 3.6%, or
128,470 MT, on the prior
comparable period.
The increase was mainly
due to higher export
volumes of WMP,
supported by butter, MPC
and MPI.
EU dairy exports
1
increased 16.4%, or
93,139 MT, in June
compared to the same
period the year prior.
The increase was mainly
due to higher export
volumes of SMP from
Ireland, and fluid milk
products Poland.
Exports for the 12 months
to June were up 4.5%, or
296,466 MT, on the prior
comparable period.
The increase was mainly
due to higher export
volumes of SMP from
Germany and Ireland
partially offset by higher
export volumes of lactose
from the Netherlands and
infant formula from Ireland.
US dairy exports
decreased 0.9%, or
2,416 MT in June, compared
to the same period the
year prior.
The increase was mainly
due to lower export
volumes of SMP and
lactose, down 11,301 MT and
8,171 MT, or 19.1% and 18.6%,
respectively.
Exports for the 12 months
to June were up 9.9%, or
279,883 MT, on the previous
comparable period.
The increase was mainly
due to higher export
volumes of cheese, whey
powder and butter, partially
offset by lower export
volumes of SMP, WPC
and WPI.
Australia dairy exports
increased 7.1%, or 3,664M T,
in June compared to the
same period the year prior.
The increase was mainly
due to higher export
volumes of cheese, fluid
milk products and SMP,
partially offset by lower
export volumes of WMP,
dairy spreads and butter.
Exports for the 12 months
to June were down 1.8%, or
12,167 MT, on the previous
comparable period.
The decrease was mainly
due to lower export
volumes of SMP, butter,
and other powder,
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 June 2026
compared to June 2025
Change for June 2026
compared to June 2025
Change for June 2026
compared to June 2025
Change for the 12 months
to June 2026
Change for the 12 months
to June 2026
Change for the 12 months
to June 2026
0.9
1.8
4.5
9.9
7.1
16.4
1 Excludes UK.
%
%
Change for July 2026
compared to July 2025
Change for the 12 months
to July 2026
5.5
3.6

4
OUR MARKETS
Global Imports
Latin America, Asia,
Middle East & Africa
and China monthly
imports decreased
Latin America dairy
import volumes
decreased 11.5%, or
27,153 MT, in June
compared to the same
period the year prior.
The decrease was mainly
due to lower import
volumes of SMP by Mexico
and fluid milk products by
the Dominican Republic.
Imports for the 12 months
to June were down 4.2%,
or 112,268 MT, on the prior
comparable period.
The decrease was mainly
due to lower import
volumes of fluid milk
products by the Dominican
Republic, infant formula
and SMP by Mexico
and WMP by Brazil
and Venezuela.
Asia (excluding China)
dairy import volumes
decreased 11.6%, or
63,743 MT in May on the
prior comparable period.
The decrease was mainly
due to lower import
volumes of phosphoamino
lipids, down 62,505 MT, or
80.2 %, partially offset by
higher imports of SMP and
fluid milk products.
Imports for the 12 months
to May were up 2.2%, or
123,569 MT, on the prior
comparable period.
The increase was mainly due
to higher import volumes
of phosphoaminolipids by
Vietnam, partially offset by
lower import volumes of
whey powder by Indonesia
and WMP from Thailand.
Middle East and Africa
dairy import volumes
1
decreased 51.1%, or
244,74 4 MT, in June on the
prior comparable period.
The decrease was mainly
due to lower import
volumes of SMP by Egypt,
and the United Arab
Emirates, and cheese and
fluid milk products by
Saudi Arabia.
Imports for the 12 months
to June were down 19.7%, or
1,024,191 MT, 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,
partially offset by higher
imports by Turkey.
China dairy import
volumes decreased
30.8%, or 82,245 MT, in
July compared to the same
period the year prior.
The decrease was mainly
due to lower import
volumes of whey powder
from the US and WMP
from New Zealand and
the EU.
Imports for the 12 months
to July were down 4.1%, or
120,392 MT, 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 WMP
and cheese.
Latin AmericaAsiaMiddle East & AfricaChina
1 Estimates are included for those countries that have not reported data.
%%%%
%%
Change for June 2026
compared to June 2025
Change for July 2026
compared to July 2025
Change for May 2026
compared to May 2025
Change for June 2026
compared to June 2025
Change for the 12 months
to June 2026
Change for the 12 months
to May 2026
Change for the 12 months
to June 2026
To view a chart that
illustrates year-on-year
changes in imports –
30.811.611.5
2.219.7
%
Change for the 12 months
to July 2026
4.1
51.1
4.2
%

To view a table that shows
detailed milk collections in
New Zealand compared
to the previous season –
Season-to-date 1 Jun-31 Jul
compared to prior season
Season-to-date 1 Jun-31 Jul
compared to prior season
Season-to-date 1 Jun-31 Jul
compared to prior season
Increase for July 2026
compared to July 2025
Increase for July 2026
compared to July 2025
Increase for July 2026
compared to July2025
6.6
3.5
8.28.0
8.07.4
Volume (m Litres/Day)
JunJulAugSepOctNovDecJanFebMarAprMay
2026/27
2025/262024/25
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 July were 20.5
million kgMS, 8.2% higher
than July last season.
The increase is mainly due
to favourable weather and
pasture conditions.
Temperatures, and soil
moisture were in line with
historical averages for July,
with below average rainfall,
meaning reduced pasture
damage from pugging.
Season-to-date collections
are 34.5 million kgMS, 8.0%
above last season.
South Island milk
collections in July
were 2.0 million kgMS,
6. 6% higher than July
last season.
The increase was mainly
due favourable weather
conditions, with above
average temperatures for
most of the South Island
supporting pasture growth,
despite excessively wet
conditions in many regions.
Soil moisture was above
average for parts of Otago
following rainfall 4.5 times
the historical average and
below average for parts
of Canterbury.
Season-to-date collections
are 5.7 million kgMS, 3.5%
above last season.
Fonterra's New Zealand
collections for July were
22.4 million kgMS, up 8.0%
on July 2025, and a new
July record for Fonterra.
The increase was mainly
due to favourable pasture
conditions and feed
availability in recent
months, supporting
farmers milking deeper
into winter.
Season-to-date collections
are 40.2 million kgMS,
7.4% above last season.
Collections at this time
of the season typically
represent less than 3% of
the full season forecast.
%%
%%%
%

%%
%%%
%
To view more
information, including
a snapshot of the rolling
year-to-date results –
%
6
GDT Price IndexNZD/USD Spot Rate
Aug 24Aug 25Dec 25Apr 26Aug 26Apr 25Dec 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
Recent gains for the USD were partially reversed during
August as relatively benign inflation data together with
policy action from the US Treasury, designed to dampen
long-term bond yields, undermined the relative attraction
of the US currency and overshaded any underlying
safe-haven demand stemming from persistent geopolitical
uncertainties. Independently, the NZD has been bolstered
by more positive economic forecasts and expectations the
Reserve Bank of New Zealand will further increase interest
rates in coming months - the NZD appreciated to above
59 US cents.
Fonterra GDT results
at trading event 410
18 August 2026:
The next trading event will be held on 1 September 2026. Visit www.globaldairytrade.info for more information.
Change in Fonterra’s
weighted average
product price from
previous event
2.1
Fonterra’s weighted
average product price

(USD/MT)
3,899
USD
Fonterra product
quantity sold on GDT
000’ MT
36.9
NORTH ASIA (INCLUDING CHINA)
SOUTH EAST ASIA
MIDDLE EAST AND AFRICA
LATIN AMERICA
OTHER
USD 4,552/MTUSD 5,993/MT
3.45.9
BMPAMF
USD 3,484/MT
7.0
SMP
USD 3,744/MT
0.6
CHEDDAR
USD 3,589/MT
3.1
WMP
USD 5,129/MT
2.2
BUTTER
Latest Auction
73,594
MT
36,874
MT
Financial Year‑to‑Date

7
Our Performance
Fonterra cream cheese just the right mix for
Japanese bakers
Cream cheese made
from Fonterra farmers'
milk is transforming
Japan's bakery and
dessert landscape as
local chefs look for
ingredients that bring
taste, texture and
versatility to familiar
products as well as more
premium formats.
Japan is one of
New Zealand’s largest
dairy export markets,
accounting for about
15% of cheese exports,
second only to China.
Fresh and cream cheese
products have doubled
over the last three years
and now make up a
fifth of new product
development in Japan,
signalling a clear shift
in how cream cheese is
being used to create new
exciting options.
Bakers are using cream
cheese instead of
milk powder to make
traditional shokupan or
Japanese milk bread.
In this format, cream
cheese is kneaded
directly into the dough
rather than used as a
filling. The result is a loaf
with a soft, airy crumb,
subtle sweetness and
enhanced visual appeal.
The gentle flavour profile
allows the natural tang
of cream cheese to
come through without
overpowering the bread.
In baking, cream
cheese maintains
its structure during
heating, contributing
to both texture and a
premium finish. This
approach aligns with
Japanese consumers’
preference for everyday
foods that offer a
sense of indulgence
and craftsmanship.
When it comes to
desserts, smooth, rich
single-serve cheesecakes
remain a popular
format, particularly
in convenience-led
channels. These products
focus on delivering
a creamy, satisfying
cheese flavour with a
clean, light mouthfeel
that avoids heaviness.
Cream cheese plays a
central role in achieving
this balance, providing
richness, smooth
texture and consistent
flavour delivery even
in high-volumes.
Such cheesecakes
demonstrate how reliable
performance and clean
taste allow chefs to meet
consumer expectations
for indulgence in smaller,
accessible portions.
At the more premium
end, layered or hybrid
cheesecakes continue
to showcase dessert-led
innovation. These
formats typically
combine a dense baked
cheesecake base with
a lighter, creamier
top layer, often using
a mix of baked and
no-bake techniques.
Cream cheese provides
the foundation for
both layers, enabling
contrasting textures
within a single product
while maintaining a
cohesive flavour profile.
These desserts also offer
flexibility for seasonal
flavours, fruit inclusions
or decorative finishes.
Fonterra’s Darfield site
plays an important role in
supplying cream cheese
to Asia, including Japan,
where customer demand
continues to build.
Site Manager Blake
Aston said the team
had focused on lifting
capacity through
smarter operations and
new technology.
“We’ve worked hard to
unlock more capacity
at Darfield, which
puts us in a stronger
position to support
customers as demand
for cream cheese grows
across Asia.”
“What’s exciting is
seeing how customers
in Japan are using cream
cheese in new ways,
from familiar bakery
favourites through
to more premium
dessert formats.”
These examples highlight
some of the ways
Fonterra’s cream cheese
is adding value in Japan’s
fast-growing bakery and
dessert scene. Backed
by consistent quality,
clean dairy flavour and
functional reliability, it’s
playing a versatile role
across many applications
- elevating traditional
favourites while
enabling new ideas and
future trends.

Our Co‑op
8
Fonterra expands
customer innovation
capability in Chengdu
Fonterra has opened
its upgraded Chengdu
Application Centre,
bringing New Zealand
dairy expertise
closer to customers
in one of China’s
fastest-growing regions.
First opened in 2015, the
Chengdu Application
Centre has moved to a
more central location in
the city’s Jinjiang District.
With the upgraded
facilities, Fonterra’s
technical experts, chefs
and customers are now
better empowered
to develop, test and
showcase food and
beverage products.
Teh-han Chow, CEO
Greater China, Fonterra,
says the investment
builds on Fonterra’s
nearly half-century
presence in China and
reflects the Co-op’s
focus on staying close
to customers in a fast-
moving market.
“China’s foodservice
sector is evolving quickly,
and our customers
are looking for dairy
solutions that help them
respond to changing
consumer tastes with
speed, quality and
confidence.
“Through our upgraded
Chengdu Application
Centre, we can co-
create more closely with
customers, develop more
relevant applications,
and bring the benefits of
premium New Zealand
grass-fed dairy to more
Chinese consumers
across Southwest China
and beyond.
“By bringing our
technical expertise
closer to customers in
Chengdu, we can better
understand local needs,
move faster on new
ideas and help turn those
insights into practical
foodservice solutions.”
New modern kitchens
will allow customers
to see how Fonterra
products perform in
applications such as
cakes and beverages,
supported by seminars,
demonstrations and
virtual learning sessions
led by Anchor™
Food Professionals
advisory chefs.
Chengdu, the megacity
capital of Sichuan
province, is known
for its spicy food and
teahouse culture. In
2010, it became the
first city in Asia to be
named a UNESCO City
of Gastronomy, making
it a natural place for
Fonterra to expand its
local investment.
Alongside sites in Beijing,
Shanghai, Guangzhou,
Shenzhen and Wuhan,
Chengdu is one of six
Fonterra application
centres in China. This
network helps Fonterra
work closely with
customers to understand
changing food trends,
support innovation, grow
demand for New Zealand
milk and deliver more
value for farmer
shareholders.

Production
AustraliaAverage
United States
New ZealandEU
Jul 26Feb 26
Jan 26Dec 25Oct 25Sep 25Aug 25Apr 26Jun 26May 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 26Jun 26May 26Jan 26
MT (000
s
)
-60
-30
0
90
120
60
30
150
Average
Imports
Middle East & AfricaLatin America
AsiaChina
Apr 26Mar 26Jan 26Dec 25Sep 25Oct 25Nov 25Jun 26Jul 26Aug 25Feb 26May 26
MT (000s)
-300
-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 Australia to May; EU to June; New Zealand and US to July.
NOTE: Data for EU, US and Australia to June; New Zealand to July.
NOTE: Data for Asia to May, Middle East & Africa and Latin America to June; China to July.
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)
July
2026
July

2025
Monthly
Change
2026/27
Season
2025/26
Season
Season
Change
Total Fonterra
New Zealand
22.420.88.0%40.237.47.4%
North Island20.518.98.2 %34.531.98.0%
South Island2.01.96.6%5.75.53.5%
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 2026/27
Season
Forecast
Foreign
Exchange
Exposure for
2026/27 Season
Hedged2 (%)
Foreign
Exchange
Option Cover
Remaining
in Hedged
Amount2 (%)
13 July
2026
$9.25 /
$8.00-$10.50
0.57620.584658%13%
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.
As at the most recent update to the 2026/27 season forecast Farmgate Milk Price on 13 July 2026:
• Fonterra had hedged approximately 58% of the full year forecast USD cash flows related to the 2026/27 season
Farmgate Milk Price.
• Of that 58%, approximately 13% was hedged with foreign exchange options which had not yet expired or been exercised.
• If the remaining 42% of the forecast USD cash flows were to be hedged at the 13 July 2026 spot rate of 0.5762, the
average NZD/USD conversion rate for the 2026/27 season would be 0.5846.
• Also shown for information are the equivalent measures at the date of the opening forecast of the 2026/27 season
Farmgate Milk Price on 28 May 2026.
1 Numbers have been rounded so may not appear to add, multiply or reflect percentage changes.
2 Hedged percentages shown are as at the most recent month end prior to announcement date.

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

(From 1 August 2026)
Quantity Sold on GDT
(Winning MT)
36,87473,594
Change in Quantity Sold on GDT
over same period last year
9.3%8.0%
Weighted Average Product Price
(USD/MT)
3,8993,858
Change in Weighted Average
Product Price over same period last year
(10.0%)(10.9%)
Change in Weighted Average
Product Price from previous event
2.1%-
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.