Global Dairy Update September 2026

•Fonterra delivers strong
FY26 performance
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
•Asia monthly imports increased. Latin
America, Middle East & Africa and China
monthly imports decreased
•
F
onterra’s New Zealand milk collections
for August were 102.8 million kgMS,
2.9% above August last
season
•Se
ason-to-date collections are
142.9
million kgMS, 4.1% above
last season
Key Dates
12 November 2026
Fonterra Co-operative Group Annual Meeting
16 November 2026
Fonterra Shareholders' Fund Annual Meeting
September 2026
For further details,
visit our website –
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Change for August 2026
compared to August 2025
Change for August 2026
compared to August 2025
Change for July 2026
compared to July 2025
Change for July 2026
compared to July 2025
Change for the 12 months
to August 2026
Change for the 12 months
to August 2026
Change for the 12 months
to July 2026
Change for the 12 months
to July 2026
2.83.3
1.84.64.3
1.5
4.5
4.7
2
OUR MARKETS
Global Production
New Zealand, Australia,
EU and US monthly
production increased
New Zealand milk
production increased by
3.3% in August compared
to the same month the
year prior.
The increase was mainly
due to mild winter
conditions across both
islands, supporting
pasture growth and
animal condition.
New Zealand milk
production for the
12 months to August
increased 4.5% on the prior
comparable period.
See page 5 for details of
Fonterra's New Zealand
collections for August.
Australia milk
production increased 4.7%
in July compared to the
same period the year prior.
Production increased
across all states except
for Tasmania, down 2.0%
year on year. New South
Wales and Western
Australia were up 6.7% and
5.9%, respectively.
Pasture conditions were
favourable, supporting
higher collections, despite
below average rainfall in
most regions.
Australia milk production
for the 12 months to July
increased 1.8% on the prior
comparable period.
EU milk production1
was 1.5% higher in July
compared to the same
period the year prior.
The increase was mainly
due to higher production
in Germany, up 9.5 million
kgMS, or 4.7%. year on
year. This was partially
offset by lower collections
in Latvia and Ireland, down
4.9 million and 2.2 million
kgMS, respectively.
EU milk production for
the 12 months to July was
up 4.6% on the previous
comparable period.
This was mainly due to
higher production in
Germany, up 161.5 kgMS,
or 6. 7%.
US milk production
increased 2.8% in August
compared to the same
period the year prior.
The increase was mainly
due to herd growth, with
the US herd up 1.7% on
August last year. Yields
were marginally higher, up
0.2% on August 2025.
US milk production
for the 12 months to
August increased
4.3% on the previous
comparable period.
The increase was mainly
due to higher production
in California, Kansas and
Texas with year-on-year
increases of 3.3%, 22.5%
and 5.0%, respectively.
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 8.3%,
or 14,371 MT, in August
compared to the same
period the year prior.
The increase was mainly
due to higher export
volumes of WMP to China
and Sri Lanka, up 77.8%,
and SMP to Indonesia,
up 175.1%.
Exports for the 12 months
to August were up 3.2%,
or 112,954 MT, on the prior
comparable period.
The increase was mainly
due to higher export
volumes of WMP,
supported by butter
and cheese.
EU dairy exports
1
increased 7.4%, or
44,510 MT, in July
compared to the same
period the year prior.
The increase was mainly
due to higher export
volumes of SMP from
France and fluid milk
products from Greece
and Spain.
Exports for the 12 months
to July were up 5.1%, or
340,165 MT, on the prior
comparable period.
The increase was mainly
due to higher export
volumes of SMP from
France, Germany and
Ireland partially offset by
lower export volumes of
lactose from France and
the Netherlands.
US dairy exports
increased 1.1%, or 3,036 MT
in July, compared to the
same period the year prior.
The increase was mainly
due to higher export
volumes of cheese and
whey powder, up 13,192 M T,
or 25.2% and 11,842 MT, or
37.1%, respectively.
Exports for the 12 months
to July were up 9.1%, or
261,103 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
decreased 6. 1%, or
3,260 MT, in July compared
to the same period the
year prior.
The increase was mainly
due to lower export
volumes of fluid milk
products, down 1,855 M T,
or 9.3%, year on year
partially offset by higher
export volumes of
whey powder.
Exports for the 12 months
to July were down 2.0%, or
13,869 MT, on the previous
comparable period.
The decrease was mainly
due to lower exports of
SMP, butter, and other
powders, 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 July 2026
compared to July 2025
Change for July 2026
compared to July 2025
Change for July 2026
compared to July 2025
Change for the 12 months
to July 2026
Change for the 12 months
to July 2026
Change for the 12 months
to July 2026
1.1
2.0
5.1
9.1
6.1
7. 4
1 Excludes UK.
%
%
Change for August 2026
compared to August 2025
Change for the 12 months
to August 2026
8.3
3.2

4
OUR MARKETS
Global Imports
Asia monthly imports
increased. Latin
America, Middle East
& Africa and China
monthly imports
decreased
Latin America dairy
import volumes
decreased 6. 5%, or
15,385 MT, in June
compared to the same
period the year prior.
The decrease was mainly
due to lower import
volumes of SMP and fluid
milk products, offset by
higher imports of lactose
and phosphoaminolipids.
Imports for the 12 months
to June were down 3.4%,
or 90,813 MT, on the prior
comparable period.
The decrease was mainly
due to lower import
volumes of cheese and
fluid milk products by the
Dominican Republic, and
lower SMP and infant
formula imports by Mexico.
Asia (excluding China)
dairy import volumes
increased 4.0%, or
19,957 MT June on the prior
comparable period.
The increase was mainly
due to higher import
volumes of WMP, fluid
milk products and SMP.
Indonesia, the Philippines
and Malaysia all increased
import volumes.
Imports for the 12 months
to June were up 2.4%, or
140,075 MT, on the prior
comparable period.
The increase was
mainly due to higher
import volumes of
phosphoaminolipids by
Vietnam and higher SMP
imports by Indonesia.
Middle East and Africa
dairy import volumes
1
decreased 26.9%, or
118,277 MT, in June on the
prior comparable period.
The decrease was mainly
due to lower import
volumes of SMP, fluid milk
products and cheese.
Import volumes declined in
Iraq, the UAE and Algeria.
Imports for the 12 months
to June were down 16.2%, or
843,667 MT, on the previous
comparable period.
The decrease was driven
by lower import volumes
of fluid milk, WMP, SMP
and cheese. The UAE,
Algeria and Libya drove the
decrease in imports.
China dairy import
volumes decreased 15.4%,
or 33,942 MT, in August
compared to the same
period the year prior.
The decline primarily
reflected lower imports of
whey powder, WMP and
fluid milk products.
Imports for the 12 months
to August were down
4.6%, or 135,421 M T,
on the previous
comparable period.
The decrease was mainly
due to lower import
volumes of fluid milk
products, SMP, lactose
and whey. Cheese, butter
and casein import volumes
increased over the period.
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 August 2026
compared to August 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
To view a chart that
illustrates year-on-year
changes in imports –
15.44.06.5
2.416.2
%
Change for the 12 months
to August 2026
4.6
26.9
3.4
%

To view a table that shows
detailed milk collections in
New Zealand compared
to the previous season –
Change for the 2026/27 season
compared to previous season
Change for the 2026/27 season
compared to previous season
Change for the 2026/27 season
compared to previous season
Increase for August 2026
compared to August 2025
Increase for August 2026
compared to August 2025
Increase for August 2026
compared to August 2025
9.4
8.3
0.42.9
2.74.1
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 August
were 72.7 million kgMS,
0.4% higher than August
last season.
Season-to-date collections
are 107.0 million kgMS, 2.7%
above last season.
Favourable growing
conditions have supported
production in the
North Island, however
El Niño presents a risk to
production in the second
half of the 2026/27 season.
South Island milk
collections in August
were 30.2 million kgMS,
9.4% higher than August
last season.
The increase was mainly
due to favourable weather
conditions, with above
average temperatures for
most of the South Island
supporting pasture growth.
Season-to-date collections
are 35.8 million kgMS, 8.3%
above last season.
El Niño presents less
risk to South Island milk
production but is expected
to bring wetter conditions
to the lower South Island.
Fonterra's New Zealand
collections for August
were 102.8 million kgMS,
up 2.9% on August 2025,
and a new August record
for Fonterra.
The increase was mainly
due to strong early
season production in the
South Island, supported by
mild winter conditions and
new farms in Canterbury
supplying the Co-op.
Season-to-date collections
are 142.9 million kgMS, 4.1%
above last season.
%%
%%%
%

%%
%%%
%
To view more
information, including
a snapshot of the rolling
year-to-date results –
%
6
GDT Price IndexNZD/USD Spot Rate
Sep 24Sep 25Jan 26May 26Sep 26May 25Jan 25
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
The USD recovery accelerated during September as the
US Federal Reserve showed its ‘teeth’ in response to
persistently-high core inflation, delivering a 25bp interest
rate increase and signaling that further increases are
likely. In New Zealand, the Reserve Bank also increased
its benchmark interest rate by 25bps. However, its
commentary suggested a potentially slower trajectory for
future monetary policy tightening than financial markets
had anticipated. This weighed on the currency, with the
NZD/USD exchange rate falling below 57 US cents.
Fonterra GDT results
at trading event 412
15 September 2026:
The next trading event will be held on 6 October 2026. Visit www.globaldairytrade.info for more information.
Change in Fonterra’s
weighted average
product price from
previous event
1.0
Fonterra’s weighted
average product price

(USD/MT)
3,880
USD
Fonterra product
quantity sold on GDT
000’ MT
40.0
NORTH ASIA (INCLUDING CHINA)
SOUTH EAST ASIA
MIDDLE EAST AND AFRICA
LATIN AMERICA
OTHER
USD 5,739/MTUSD 4,761/MT
3.05.7
AMFBUTTER
USD 4,075/MT
16.3
CHEDDAR
USD 3,563/MT
0.6
WMP
USD 3,688/MT
0.5
SMP
USD 4,549/MT
0.6
BMP
Latest Auction
153,156
MT
39,998
MT
Financial Year‑to‑Date

7
Our Performance
Fonterra delivers
strong FY26
performance
Fonterra Co-operative
Group Ltd reported its
FY26 annual results on
24 September, delivering
$27 billion in revenue and
nearly $20 billion in cash
returns to New Zealand
farmer owners and
unit holders.
The final Farmgate Milk
Price for the 2025/26
season was $9.69 per
kgMS. The Co-op also
declared a final fully
imputed dividend of
33 cents per share,
bringing fully imputed
total dividends for the
year to 73 cents per
share. This includes the
24 cent interim dividend
and 16 cent special
Mainland dividend paid
in April.
Fonterra Chairman
Peter McBride says
the Co-operative has
continued building
momentum and
delivered at the top
end of its performance
expectations.
“Consistency is
important to farmers
and our shareholders.
We’re proud of the
collective effort that’s
delivered another
strong result, at the
top end of our earnings
guidance. The team
hasn’t missed a beat
despite the Mainland
divestment process and
the significant change
that followed.
Richard’s transition into
the CEO role has been
seamless and it’s exciting
to see the energy
his team is putting
into building off this
strong position."
Fonterra CEO Richard
Allen says the
Co-operative’s disciplined
approach to strategic
execution has once again
generated strong results.
“FY26 was a year of
delivery. Our teams
collected, processed
and shipped near
record volumes of milk,
allocated products for
the highest possible
returns, and reliably
delivered them to our
customers right around
the world. “Despite some
challenging conditions,
including weather events
and geopolitical volatility,
we leveraged our full
supply chain network
and logistics partnerships
to keep milk moving,
achieving record shipping
volumes and materially
improving our delivery
performance,” says
Mr Allen.
Performance
Total Group reported
operating profit was
$3.4 billion, up from
$1.7 billion last year,
including the Mainland
divestment benefit of
$1.2 billion. Reported
profit after tax was
$2.6 billion.
“One year ago, we set
a target for earnings to
return to FY25 levels
within three years if
the Consumer and
associated businesses
were divested,” says
Mr Allen.
“I’m pleased to share
that our team’s focused
execution of strategy
in FY26 has got us to
that target already, with
underlying operating
profit for our continuing
business of $1.8 billion
and profit after tax of
$1.2 billion, equivalent to
71 cents per share.”
The Co-operative’s return
on capital was 14.2 %,
above our target range
of 10-12% and showing
the value of our focused
business-to-business
(B2B) strategy.
“Our Ingredients business
delivered $1,293 million
in operating profit,
supported by strong
global protein demand,
favourable pricing and
product mix decisions. In
Foodservice, we achieved
$547 million in operating
profit, which was driven
largely by volume and
pricing growth across all
product categories and
markets,” says Mr Allen.
Strategy
Mr Allen says Fonterra’s
strategy to create value
for farmers through
disciplined capital
choices, operational
efficiencies, innovation
and a customer focus is
delivering results, and will
continue to guide its new
era as a B2B Co-op. “Our
foundations are in our
New Zealand milk supply,
and as we move forward
as a B2B Co-op, we’ll
stay focused on making
our farmer offering as
competitive as possible.
This includes helping
farmers with practical
tools and services to
make compliance easier
and targeted support for
the next generation of
Co-op farm owners.

8
Our Performance
“This year, we also
confirmed the planned
expansion of our organic
milk business into the
South Island and are
continuing with our
recruitment drive for
more organic farmers
across the country to
meet growing demand,
off the back of a record
organic milk price of
$14.13 per kgMS.
"Our New Zealand milk
is complemented by our
high value, off-shore
whey protein sourcing,
which in FY26 continued
to deliver outstanding
returns to the portfolio.
“Our priorities in FY26
were to complete
the Mainland Group
sale, unlock new
manufacturing capacity,
and continue with our
Enterprise Resource
Planning (ERP) software
roll-out. I’m pleased to
report that we have
executed on all of these
this year.
“Following approval from
our farmer shareholders,
we completed the sale
of Mainland Group in
March and have been
working to ensure a
smooth separation of the
two businesses.
“We progressed our
capital investment
programme and invested
$1 billion in essential
sustainability and
growth projects.
“And finally, our ERP
system replacement is
on track and on budget,
with five sites now live
and two more planned
for later this year.
“These priorities will
continue into 2027
as we maintain our
focus on investing for
growth, operational
efficiency and
digital transformation.
“This year, we also
continued with our
sustainability efforts
and made progress on a
programme of long-term
energy resilience projects
across multiple sites to
improve energy security,
reduce gas usage and
support our emissions
targets and future
processing growth.
"Today, we are
announcing the Co-op
will invest an incremental
$1 billion over the next
three years in the South
Island to accelerate
and expand our
protein manufacturing
network and improve
our environmental
performance, including
our impact on water
and emissions.
"These projects position
the Co-op to respond to
changes in how people
want to consume dairy,
with a growing focus on
sustainably produced,
protein-rich and nutrient-
dense foods. They are
critical to our future value
growth and improve our
optionality, increase our
capacity and, as a result,
strengthen returns for
farmers and shareholders
over the long term.
"Using the capital
retained from the
Mainland Group
divestment, alongside
our strong cashflow, this
additional investment will
help us move more milk
from whole milk powder
and commodities into
high-value products,
strengthen partnerships
with existing customers,
and pursue new
opportunities as demand
for advanced proteins
continues to grow.
"Once operational in
2029, the investment
is expected to
create around 50-60
permanent roles, as
well as supporting
local businesses
involved across the
construction projects."
Over the next three
years, Fonterra expects
total capital investment
to be approximately
$1.3-1.6 billion per annum.
Outlook
“Looking ahead, we’re
planning for another
season of strong milk
supply. However, we are
also well prepared for an
El Niño weather pattern
should this eventuate,”
says Mr Allen.
The Co-operative
is forecasting milk
collections for the
2026/27 season to be
just above 1.6 billion
kgMS, and a Farmgate
Milk Price of $9.50 per
kgMS with a range of
$8.50-$10.50 per kgMS.
The 2026/27 Organic
Milk Price forecast is
$14.30 per kgMS within
a range of $13.30-$15.30
per kgMS.
Having reached the
target for earnings to
return to FY25 levels,
Fonterra will no longer
report on that target
and will revert to its prior
practice of forecasting
earnings for the relevant
financial year.
Accordingly, the
Co-operative’s forecast
earnings range for FY27
is 65-85 cents per share.
This improving outlook
reflects continued
delivery from our B2B
businesses, as they
continue to grow
high-value demand
across our markets.
Geopolitical volatility
remains and with only
two months complete,
previous seasons tell
us that things can
always change.
“This year, we’ve
delivered a strong set of
results, executed on our
priorities and positioned
the Co-op for a new
phase of value growth
as a global B2B dairy
ingredients provider,”
says Mr Allen.
“The sale of Mainland
Group was a significant
step forward. Now, as we
head into an increasingly
changing world,
our farmers’ quality,
grass-fed milk, combined
with our flexible assets,
reliable supply chain
and deep customer and
market presence will help
us deliver growth into
the long term.
"We're building on our
strong foundations,
focused on making
Fonterra’s products
the world’s most
sought-after source of
nutrition and fostering
an enduring Co-op
for generations.”

Production
AustraliaAverage
United States
New ZealandEU
Jul 26Feb 26
Jan 26Dec 25Oct 25Sep 25Aug 26Apr 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 26Jul 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 26Feb 26May 26
MT (000s)
-200
-150
-50
-100
0
100
50
Average
9

Supplementary Information
Global Dairy
Market
The charts on the right
illustrate the year-on-
year changes in imports,
exports and production
for a range of countries
that are important
players in global
dairy trade.
NOTE: Data for EU and Australia to July; New Zealand and US to August.
NOTE: Data for EU, US and Australia to July; New Zealand to August.
NOTE: Data for Asia, Middle East & Africa and Latin America to June; China to August.
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 compared
to the previous season.
Milk Collection1
(million kgMS)
August
2026
August

2025
Monthly
Change
2026/27
Season
2025/26
Season
Season
Change
Total Fonterra
New Zealand
102.899.92.9%143.0137.34.1%
North Island72.772.30.4%107.1104.32.8%
South Island30.227.69.4%35.933.18.4%
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 2026/27
Season
Forecast
Foreign
Exchange
Exposure for
2026/27 Season
Hedged2 (%)
Foreign
Exchange
Option Cover
Remaining
in Hedged
Amount2 (%)
21 September
2026
$9.50 /
$8.50-$10.50
0.57220.583973%16%
13 July
2026
$9.25 /
$8.00-$10.50
0.57620.584658%13%
As at the most recent update to the 2026/27 season forecast Farmgate Milk Price on 21 September 2026:
• Fonterra had hedged approximately 73% of the full year forecast USD cash flows related to the 2026/27 season
Farmgate Milk Price.
• Of that 73%, approximately 16% was hedged with foreign exchange options which had not yet expired or
been exercised.
• If the remaining 27% of the forecast USD cash flows were to be hedged at the 21 September 2026 spot rate of
0.5722, the average NZD/USD conversion rate for the 2026/27 season would be 0.5839.
• Also shown for information are the equivalent measures at the date of the previous forecast update of the
2026/27 season Farmgate Milk Price on 13 July 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 26Feb 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
(15 September 2026)
Year-to-Date

(From 1 August 2026)
Quantity Sold on GDT
(Winning MT)
39,998153,146
Change in Quantity Sold on GDT
over same period last year
5.9%5.9%
Weighted Average Product Price
(USD/MT)
3,8803,879
Change in Weighted Average
Product Price over same period last year
(4.9%)(7.6%)
Change in Weighted Average
Product Price from previous event
(1.0%)-
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.