Global Dairy Update April 2022

• Fonterra's Research and Development Centre celebrates
95 years.
1
Global Dairy
UPDATE
• New Zealand, Australia and US monthly
production continue to decline. EU monthly
production flat.
• New Zealand monthly exports flat,
Australia and US exports up. EU monthly
exports decline.
• Sharp decline in China monthly imports.
Middle East & Africa and Asia up.
Latin America monthly imports down.
• Fonterra New Zealand milk collections for the
season-to-date were 1,296.4 million kgMS,
down 3.7% on the prior season.
• Fonterra Australia milk collections for March
were 7.9 million kgMS, down 2.3% on March
last season.
• World Water Day: Prioritising water initiatives.
Key Dates
26 May 2022
FY22 Q3 Business Update
1 June 2022
Start of the 2022/23 Season
31 July 2022
End of FY22 Financial Year
APRIL 2022

%
%
%%
%
%
%%
Change for March 2022
compared to March 2021
Change for March 2022
compared to March 2021
Change for February 2022
compared to February 2021
Change for January 2022
compared to January 2021
Change for the 12 months to
March 2022
Change for the 12 months
to March 2022
Change for the 12 months
to February 2022
Change for the 12 months
to January 2022
0.56.11.9
2.10.10.8
0.0
2.6
2
OUR MARKETS
Global Production
New Zealand, Australia and
US monthly production
continue to decline, EU
monthly production flat
New Zealand milk
production¹ decreased
1.9% on a litres basis, (down
1.5% on a milk solids basis) in
March compared to March the
year prior.
Warm and dry conditions early
in the month were replaced by
significant rainfall in the North
Island, benefiting pastures
and production, while the
South Island experienced
dry and more unfavourable
growing conditions.
New Zealand milk production
for the 12 months to March was
down 2.6% on the year prior.
Fonterra New Zealand
collections are reported for
March, see page 5 for details.
Australia milk production
decreased 6.1% in February
compared to February the year
prior. Production continued to
decline year on year, impacted
by below average rainfall and
higher input prices.
Australia milk production for
the 12 months to February was
2.1% lower than the year prior.
Both Dairy Australia and
Rabobank have revised
their FY22 forecasts down;
Rabobank to -1.8% and Dairy
Australia to -1% to -3%.
Fonterra collections in Australia
are reported for March, see
page 5 for details.
EU milk production² was
flat in January compared to
the same period the year prior.
Rising input costs, low-quality
silage and a focus on animal
welfare in Germany, as well
as incentives from the Dutch
Government to livestock
farmers to relocate or exit the
business to reduce carbon
footprint, are impacting total
EU production. This was offset
by an increase in Italy, Poland
and Austria’s production.
EU milk production for the
12 months to January was
down 0.1% compared to the
same period the year prior,
driven by declines in Germany,
Netherlands and France and
offset by increases in Italy
and Ireland.
US milk production
decreased by 0.5% in March,
compared to the same period
the year prior.
Average herd sizes remain
small but have started
growing again for the second
consecutive month. Cost
saving initiatives in response to
high feed costs are limiting milk
yield per cow growth.
Milk production for the 12
months to March was 0.8%
higher compared to the same
period the year prior.
NEW ZEALANDAUSTRALIAEUROPEAN UNIONUSA
To view a chart that
illustrates year-on-year
changes in production –
1 New Zealand production is measured in litres.
2 Excludes UK.

To view a chart that
illustrates year-on-year
changes in exports –
3
OUR MARKETS
Global Exports
New Zealand monthly
exports flat, Australia and
US exports up. EU monthly
exports decline
Total New Zealand
dairy exports were flat in
February compared to the
same period the year prior.
Stronger shipments of SMP
to South East Asia and Libya,
and butter and fluid milk
products to China, were
observed year-on-year, but
offset by lower shipments of
WMP to China.
Exports for the 12 months to
February were up by 2.1%,
or 72,964 MT, compared to
the same period the year
prior. This was primarily
driven by increases in fluid
milk product, WMP, and
cheese but partially offset
by declines in AMF and
infant formula.
EU dairy exports
decreased 5.6%, or
30,532 MT, in January
compared to the same
period the year prior.
Lower exports of fluid milk
products, SMP and whey
to China, were partially
offset by an increase in
cultured products.
Exports for the 12 months to
January were down 1.2%, or
88,467 MT, on the previous
comparable period, driven
by declines in infant formula,
cultured products, WMP,
SMP and butter and partially
offset by increases in fluid
milk products and ice cream.
US dairy exports
increased 0.1%, or 211  MT,
in February compared to
the same period the year
prior, which was a record
exporting month.
February saw an increase in
demand for lactose to China
and Pakistan, cheese to
Mexico and Japan and butter
to Canada. This was largely
offset by lower shipments of
SMP due to port congestion
and shipping challenges
from California and smaller
volumes of whey to China.
Exports for the 12 months to
February were up 9.2%, or
233,638 MT on the previous
comparable period, driven by
cheese, SMP, whey, lactose,
and fluid milk products.
Australia dairy exports
increased 29.9%, or
20,941 MT, in February
compared to the same
period the year prior.
February exports continue to
be high year-on-year, driven
by strong demand from
China for fluid milk products,
up 18,903 MT. Increases in
exports of SMP and other
powders were also observed.
Exports for the 12 months to
February were up 21.1%, or
163,075 MT, on the previous
comparable period.
This was predominantly
driven by increases in
fluid milk products, SMP
and WMP.
NEW ZEALANDAUSTRALIAEUROPEAN UNIONUSA
%%%
%
%
%
Change for February 2022
compared to February 2021
Change for February 2022
compared to February 2021
Change for February 2022
compared to February 2021
Change for January 2022
compared to January 2021
Change for the 12 months
to February 2022
Change for the 12 months
to February 2022
Change for the 12 months
to February 2022
Change for the 12 months
to January 2022
0.129.90.0
21.1
5.6
9.21.22.1
%
%

To view a chart that
illustrates year-on-year
changes in imports –
4
OUR MARKETS
Global Imports
Sharp decline in China
monthly imports. Middle
East and Africa and Asia
up. Latin America monthly
imports down
Latin America dairy
import volumes¹ decreased
3.7%, or 6,246 MT, in January
compared to the same period
the year prior.
The decrease was driven by
lower demand for SMP to
Columbia, Mexico and Brazil,
and WMP to Brazil.
Imports for the 12 months
to January were up 3.5%
compared to the same period
the year prior, driven by higher
volumes of cheese, SMP, whey
and butter and partially offset
by declines in WMP.
Asia (excluding China)
dairy import volumes¹
increased 15.3%, or 56,983 MT,
in January compared to the
same period the year prior.
The increase was driven by
higher demand for SMP to the
Philippines and Vietnam and
whey to Vietnam.
Imports for the 12 months
to January were up 1.8%, or
85,960 MT, compared to the
same period the year prior,
driven by higher volumes of
whey, cheese, WPC and WPI
and fluid milk products and
partially offset by a decrease
in WMP.
Middle East and Africa
dairy import volumes¹
increased 42.8% or 152,195 MT
in January compared to January
2021, which was an unusally
low import month.
The increase was driven by
higher volumes across most
product categories, but most
specifically of SMP to Egypt
and Algeria, cheese to Iraq and
Libya and fluid milk products to
United Arab Emirates and Iraq.
Imports for the 12 months
to January were up 6.9%,
or 333,521 MT, compared to
January the year prior, driven by
increases in fluid milk products,
cheese and cultured products.
China dairy import
volumes decreased by
29.1%, or 115,101 MT, in March
compared to March 2021.
Compared to record import
volumes in March last year,
lower volumes were observed
across most products. Covid-
related port congestions and
supply chain delays were a key
driver of the decline. Whey
imports decreased sharply as
lower quality feed for hog herds
is being used as a cheaper
alternative. Fluid milk products,
WMP and SMP imports
also decreased.
Imports for the 12 months
to March were up 5.3%, or
199,755 MT, driven by WMP,
fluid milk products and SMP,
partially offset by decreases in
whey and infant formula.
LATIN AMERICAASIAMIDDLE EAST & AFRICACHINA
1 Estimates are included for those countries that have not reported data.
%
%
%%
%
Change for January 2022
compared to January 2021
Change for March 2022
compared to March 2021
Change for January 2022
compared to January 2021
Change for January 2022
compared to January 2021
Change for the 12 months
to January 2022
Change for the 12 months
to January 2022
Change for the 12 months
to January 2022
29.1
15.33.7
1.86.9
%
Change for the 12 months
to March 2022
5.3
42.8
3.5
%
%

To view a table that shows
detailed milk collections in New
Zealand and Australia compared
to the previous season –
%
%%
Season-to-date
1 July to 31 March
Season-to-date
1 June to 31 March
Season-to-date
1 June to 31 March
Season-to-date
1 June to 31 March
Change for March 2022
compared to March 2021
Change for March 2022
compared to March 2021
Change for March 2022
compared to March 2021
Change for March 2022
compared to March 2021
2.32.30.11.0
1.23.04.13.7
VOLUME M LITRESDAY
JUNJULAUGSEPOCTNOVDECJANFEBMARAPRMAY










5
OUR MARKETS
Fonterra Milk Collections
NEW ZEALANDNORTH ISLANDSOUTH ISLANDAUSTRALIA
New Zealand Milk Collections
Fonterra's Australia
collections for March
were 7.9 million kgMS, a
2.3% decrease on March
last season.
Third party volumes
decreased, and farm
collections increased
year-on-year due to new
suppliers who have joined
this season.
Fonterra collections across
Australia for the nine months
for the season-to-date are
83.1 kgMS, a 1.2% decline on
last season.
North Island milk
collections in March
were 74.8 million kgMS, a
slight increase on March
last season.
Season-to-date collections
were 772.1 million kgMS, 4.1%
behind last season.
North Island milk collections
have been strong throughout
March, recovering after the
February rain and supported
by further rain later in
the month.
South Island milk
collections in March were
62.0 million kgMS, 2.3%
lower than last March.
Season-to-date collections
were 524.3 million kgMS,
3.0% behind last season.
The South Island’s hot and
dry conditions continued,
impacting milk production.
The lack of rain in the Lower
South and low sunshine
hours in the Central South
reduced grass growth and, in
turn, milk production.
Fonterra's New Zealand
collections for March were
136.8 million kgMS, 1.0%
lower than last March.
Season-to-date collections
were 1,296.4 million kgMS,
3.7% behind last season.
March saw hot, dry
conditions continue,
although February’s rain
did set up strong growing
conditions for March for
much of the North Island.
Further rain in the second
half of March for the North
Island contributed to the
ongoing strong production.
Conversely, the South Island
struggled with a lack of
rain and more challenging
growing conditions.
%%%
%
%

%
%
%%
%
To view more information,
including a snapshot of the
rolling year-to-date results –
%
6
GDT PRICE INDEXNZDUSD SPOT RATE
APR  NOV  APR JUL SEP NOV FEB APR JUL  SEP  FEB 


,
,
,
,
,

.

.
.

.
.
.
.
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 NZD weakened to below
68 US cents; the USD’s strength
supported by expectations that
the US Federal Reserve will act
more quickly and by a larger
magnitude when raising interest
rates to combat inflation and, as
hopes for a quick and peaceful
resolution to the war in Ukraine
faded, demand for USDs emerged.
Fonterra GDT results at
last trading event
19 April 2022:
The next trading event will be held on 3 May 2022. Visit www.globaldairytrade.info for more information.
Change in Fonterra’s
weighted average product
price from previous event
2.9
Fonterra’s weighted
average product price

(USD/MT)
4,911
USD
Fonterra product quantity
sold on GDT
000’ MT
20.9
NORTH ASIA (INCLUDING CHINA)
SOUTH EAST ASIA
MIDDLE EAST AND AFRICA
LATIN AMERICA
OTHER
USD 4,207/MT
7.2
WMP
USD 6,802/MT
1.5
AMF
USD 4,435/MT
4.2
SMP
USD 6,640/MT
3.7
BUTTER
USD 6,185/MT
4.4
CHEDDAR
20,896
MT
LATEST AUCTION
466,002
MT
FINANCIAL
YEAR‑TO‑DATE

7
Our Performance
Fonterra's Research and
Development Centre
celebrates 95 years
The year 1927 was full of
innovations and ideas
that created history – the
electric television, the first
transatlantic telephone
call, and the Ford Motor
Company introduced its new
Model A Ford.
Fittingly, it was also when
the Fonterra Research and
Development centre (FRDC)
was first formed, although
back then it was known as
‘The Dairy Research Institute’.
The dairy industry was much
different back then; milk
was delivered to the factory
by horse and cart and milk
quality judged by smell.
We’ve come a long way since.
The Dairy Research Institute
started on the Massey
University site, but moved
to its own site a few years
later and was renamed
and became FRDC when
Fonterra was formed in 2001.
This month FRDC celebrates
it’s 95th birthday, and much
like the pioneers of the
1920s, it also lays claims to
many world firsts.
FRDC is a really special
part of Fonterra and the
New Zealand dairy industry,
says Mark Piper, Fonterra
Director Category, Strategy
and Innovation
“It's where we've developed
everything from spreadable
butter, to extra stretch
mozzarella and more
recently, Kowbucha, which
is a really exciting probiotic
that we're working on to
try and reduce methane
from cows.
“All of our products that you
see on the shelf, from our
delicious cheeses through to
our huge range of specialty
products globally, have
come through our FRDC
innovation centre. It really
is integral to our Co-op’s
continued success.
“Ultimately, the secret of
FRDC's success comes
down to its people. I know
everyone says this, but we’re
so fortunate with the range
of skill sets, knowledge,
backgrounds and even
personalities, that we have
on-site.
“We've got people who
have been involved in the
industry for two weeks, to
over 50 years. If you add
up all those years of dairy
experience that we've got -
there's over 4,000 years of
collective experience.
“This diverse range of people,
along with Fonterra's global
partners, really drive FRDC's
innovation and creative
problem-solving.
“For me, that's what's going
to keep us at the forefront of
dairy innovation for another
95 years.
“We’re building on great
foundations and we have
a very long track record of
creating value from our milk
through innovation and
producing sustainable and
nutritious dairy products.
Pace is so important as we
look to stay ahead of new
trends to lead the game.
“We’re constantly looking
at consumer trends, what’s
happening in the world and
how Fonterra and dairy can
play a part in this. We’re
facing a future where milk
supply is likely to decline,
or be flat at best. This gives
us an opportunity to be
selective about what we
do with the milk so we
can increase the value
we generate.
“It also gives us an
opportunity to discover all
the fun things we can do
with milk – from mozzarella
on dumplings, to tea with a
creamy cheese topping.
“As part of our long-term
strategy, Fonterra is aiming
to increase its current
total annual research and
development investment
by over 50% to around
$160 million per annum by
2030, with about $60 million
per annum specifically
targeted at growth in Active
Living, as we continue to
develop new innovative
products to support our
value growth plans.
5 things you should know about the Fonterra Research and
Development Centre:
1. Lays claims to many world ‘first’ including:
• Best performing instant whole milk powder,
• Functional proteins used in yoghurts, aging, sports, and
medical nutrition products,
• Extending whole milk powder shelf life to 24 months
through improvements in quality and gas flushing, and
• Specialised creams for chefs and bakers.
2. FRDC has filed more than 400 patents and 1,000s of
papers have been published by the team.
3. Is researching complex lipids in milk that may help brain
development and function.
4. Is home to one of the largest dairy culture libraries in the
world, containing more than 40,000 strains.
5. Invented mozzarella that matures in just a few hours
rather than the normal four months.

Our Co-op
8
World Water Day: Prioritising water initiatives
March 22 2022 marked
World Water Day, a day
which highlights the
importance of fresh
water and the sustainable
management of
freshwater resources.
This year’s theme is
‘Groundwater – making the
invisible visible’. Groundwater
is significant for many
industries, ecosystems,
agriculture, and water and
sanitation systems, and
is an important focus for
Fonterra in achieving our
sustainability targets.
“At Fonterra we care about
the environment and the
communities in which we
operate and we’re always
looking for ways to improve
- one area that’s always a
focus for us is water,” says
Lee Stewart, Fonterra’s Head
of Corporate Sustainability.
Around a third of
New Zealand’s water is
underground in layers of
water-soaked rock or gravel,
and comes from different
sources, including rainfall,
lakes, rivers, and streams.
Groundwater pollution is a
significant global problem,
which can take decades or
even centuries to recover
from, so we need to ensure
we protect this resource for
future generations.
The following is a snapshot
of just some of the work
we’re doing to protect this
precious resource.
Wastewater
As well as the good work
farmers are putting in
on-farm, we’re investing
in water-saving initiatives
across our 28 factories across
New Zealand. Our factories
depend on water, and we
want to ensure our water use
is as efficient as possible.
All our manufacturing sites
are prioritising the reduction,
or re-use of water, taking
steps to make sure our plants
are operating as efficiently
and effectively as possible
while limiting their impact
on the environment.
Our Hautapu site, located
in the heart of Waikato, is a
leader in eco-efficiency and
sustainability. Like many of
our sites across the country,
wastewater is treated and
then returned to the natural
environment through
irrigation on our nutrient
management farms.
We’ve recently been
granted a consent for a
new wastewater treatment
facility that will create better
sustainability outcomes for
the site and the community.
Northland Kaipara
Harbour Group
We’ve recently partnered
with the Kaipara Moana
Remediation Programme in a
decade-long project to help
restore the health and mauri
of Kaipara Moana.
Kaipara Harbour is
New Zealand’s largest
harbour and the largest in
the Southern Hemisphere.
Its waters, associated
catchments and ecosystems
covers over 6,020km2
– one-third of the
Northland region.
A remediation programme
of this size and scale is a
New Zealand first, providing
an exciting opportunity
to support a shifting
generational change to
restore the Harbour for
our future.
The biggest threat to the
wonderful taonga of the
Kaipara Harbour is the soil.
Seven thousand tonnes
worth of soil pours into
the harbour each year. The
project aims to reduce any
ongoing environmental
degradation by halving
sediment loss from land
to sea, benefitting the
harbour in improving
freshwater quality and
increasing biodiversity.
We will support Northland
dairy farmers through the
partnership by accelerating
on-farm projects and
developing our Farm
Environmental Plans to
deliver sustainable results.
Living Water Partnership
with Landscape DNA
A new project supported
by Fonterra’s Living Water
partnership with the
Department of Conservation
will help farmers to make
the best decisions for the
environment based on better
landscape information.
Living Water and Land &
Water Science have recently
launched a new web-based
map LandscapeDNA tool,
which integrates landscape
properties and cutting-edge
science to understand why
water quality varies
LandscapeDNA brings
next generation spatial
landscape data into
one platform, putting
landscape information in
the hands of our Fonterra
farmers, land users,
catchment groups and rural
professionals, empowering
them to manage their
land, while minimising
the risk of pollution and
maximising production.
The LandscapeDNA tool
will be accessible to our
Sustainable Dairy Advisers,
who work with farmers to
make the best decisions
for the environment. The
next phase of the project is
currently underway, curating
a dashboard which serves as
a one-stop-shop. The update
looks to integrate accurate
landscape information and
farm financials, further
assisting in effectively
mitigating land-use impacts
on water quality.
To read more on our
proposed facility –
To learn more on the
programme –
For more information on the
LandscapeDNA tool –

PRODUCTION
AUSTRALIAAVERAGE
UNITED STATES
NEW ZEALANDEU
DEC JUL 
JUN MAY MAR FEB JAN SEP NOV OCT AUG APR 
LIQUID MILK M LITRES








EXPORTS
AUSTRALIA
UNITED STATES
NEW ZEALANDEU
AUG JUL JUN APR MAR FEB JAN DEC NOV OCT SEP MAY 
MT s










AVERAGE
IMPORTS
MIDDLE EAST & AFRICALATIN AMERICA
ASIACHINA
SEP AUG JUN MAY FEB MAR APR NOV JAN DEC JUL OCT 
MT s







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.
The absolute size of
the bars represents the
change in imports, exports
or production, relative
to the same period the
previous year.
Averages are shown where
data is complete for the
regions presented.
NOTE: Data for EU to January; Australia to February; New Zealand and US to March.
NOTE: Data for EU to January; New Zealand, US and Australia to February.
NOTE: Data for Asia, Middle East & Africa and Latin America to January; China to March.
SOURCES: Government milk production statistics (DCANZ, Dairy Australia, Eurostat, USDA)/GTA trade data/Fonterra analysis.

WEIGHTED AVERAGE PRICEQUANTITY SOLD
APR MAR JAN OCT FEB JUL AUG MAY SEP NOV DEC JUN 
,
,
,

,

,

,
,
,
,
,
WEIGHTED AVERAGE PRICE USDMT
QUANTITY SOLD  MT
10

Supplementary Information
Fonterra milk
production
The table on the right
shows Fonterra milk solids
collected in New Zealand
and Australia compared
to the previous season.
MILK COLLECTION
(MILLION KGMS)
MARCH
2022
MARCH

2021
MONTHLY
CHANGE
SEASON-
TO-DATE
2021/22
SEASON-
TO-DATE
2020/21
SEASON-
TO-DATE
CHANGE
Total Fonterra
New Zealand
136.8138.2(1.0%)1,296.41,345.8(3.7%)
North Island74.874.70.1%772.1805.5(4.1%)
South Island62.063.4(2.3%)524.3540.4(3.0%)
Australia7.98.1(2.3%)83.184.1(1.2%)
Fonterra GDT results
This table provides more
information on the latest
results, including a snapshot
of the year-to-date results.
LAST TRADING EVENT
(19 APRIL 2022)
YEAR-TO-DATE

(FROM 1 AUGUST 2021)
Quantity Sold on GDT
(Winning MT)
20,896466,002
Change in Quantity Sold on GDT
over same period last year
(13.4%)(13.5%)
Weighted Average Product Price
(USD/MT)
4,9114,399
Change in Weighted Average
Product Price over same period
last year
18.0%28.2%
Change in Weighted Average
Product Price from previous event
(2.9%)–
Fonterra GDT results
This chart shows Fonterra
GDT prices and volumes over
the past 12 months.

11
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, 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 NZ
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.