Global Dairy Update September 2025

• Fonterra reports
continued strong
performance in FY25
1
Global Dairy
UPDATE
• New Zealand, EU and US monthly
production increased. Australia monthly
production decreased
• New Zealand and US monthly exports
increased. Australia and EU monthly
exports decreased
• Asia, Latin America and China monthly
imports increased. Middle East & Africa
monthly imports decreased
• Fonterra's New Zealand collections
for August were 99.9 million kgMS,
2.0% above August last season.
Season‑to‑date collections are
137.3 million kgMS, 3.2% above
last season
• Fonterra’s Australia collections in August
were 7.3 million kgMS, 3.5% above
August last season. Season‑to ‑date
collections are 12.8 million kgMS, 2.4%
above last season
• New UHT cream plant takes shape in Southland
Key Dates
30 October 2025
Fonterra Co‑operative Group
Special Meeting
11 December 2025
Fonterra Co‑operative Group
Annual Meeting
15 December 2025
Fonterra Shareholders' Fund Annual
Meeting
SEPTEMBER 2025
For further details,
visit our website –

Change for August 2025
compared to August 2024
Change for August 2025
compared to August 2024
Change for July 2025
compared to July 2024
Change for July 2025
compared to July 2024
Change for the 12 months
to August 2025
Change for the 12 months
to August 2025
Change for the 12 months
to July 2025
Change for the 12 months
to July 2025
3.31.8
1.10.21.2
0.5
2.0
4.0
2
OUR MARKETS
Global Production
New Zealand, EU
and US monthly
production increased.
Australia monthly
production decreased
New Zealand milk
production increased
1.8% in August compared
to the prior year.
The increase was mainly
due to favourable on‑farm
conditions, with soil
moisture at capacity
for most of the country.
Some regions had drier
and cooler weather
that reduced pasture
damage and supported
grazing conditions.
New Zealand milk
production for the
12 months to August was
up 2.0% on the previous
comparable period.
Fonterra New Zealand
collections are reported
for August, see page 5
for details.
Australia milk
production decreased
4.0% in July compared to
July the year prior.
The decrease was mainly
due to constrained feed
availability and input costs
circa 20% above July last
year. Meanwhile, the price
for cull cows have reached
its highest level since 2022.
Australia milk production
for the 12 months to
July was 1.1% down
on the previous
comparable period.
Fonterra collections in
Australia are reported
for August, see page 5
for details.
EU milk production1
increased 0.5% in July
compared to the same
period the year prior.
The increase was mainly
due to higher production
in Ireland and Poland,
along with a notable
increase from Hungary,
recording 15.9% higher
year‑on‑year collections.
The increase was partially
offset by lower volumes
in Belgium and Germany
as key European dairy
producing regions continue
to manage bluetongue
virus outbreaks.
EU milk production for
the 12 months to July was
down 0.2% on the previous
comparable period.
US milk production
increased 3.3% in August
compared to the same
period the year prior.
The increase was mainly
due to larger herd sizes and
higher yields. Production
increased year‑on‑year
for 19 of the 24 major
milk‑producing states, with
Kansas up 20% on August
last year.
The higher collections were
partially offset by lower
production in Washington,
which decreased 7.4%,
as the state's herd
size decreased 21,000
compared to last year.
US milk production for the
12 months to August was
1.2% up 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 and
US monthly exports
increased. Australia
and EU monthly
exports decreased
New Zealand dairy
exports increased 17.7%,
or 263,555 MT, in August
compared to the same
period the year prior.
The increase was mainly
due to higher export
volumes of WMP, with
Indonesia increasing their
market share by 157% to
5,442 MT, second to China,
who imported 6,072 MT
of WMP.
Exports for the 12 months
to August were up 1.1%, or
39,706 MT, on the previous
comparable period.
The increase was mainly
due to higher exports of
MPC, MPI, and cheese,
partially offset by lower
export volumes of whey
and other powders.
EU dairy exports1
decreased 0.8%, or
5,050MT, in July compared
to the same period the
year prior.
The decrease was mainly
due to lower export
volumes of whey powder
from France and fluid
milk products from the
Netherlands and Germany,
partially offset by higher
export volumes of SMP.
Exports for the 12 months
to July were up 0.2%, or
9,884 MT, on the previous
comparable period.
The increase was mainly
due to higher export
volumes WPC and WPI
from Ireland.
US dairy exports
increased 8.6%, or
20,960MT, in July
compared to the same
period the year prior.
The increase was mainly
due to higher export
volumes of cheese, and
butter, partially offset by
lower export volumes
of SMP.
Exports for the 12 months
to July were up 2.4%, or
67,447MT, on the previous
comparable period.
The increase was mainly
due to strong growth
of cheese exports, and
butter, which is up 94%,
or 26,147 MT, for the
12‑months year‑on‑year.
The increase is partially
offset by lower export
volumes of SMP.
Australia dairy exports
decreased 2.8%, or
1,598 MT, in July compared
to the same period the
year prior.
The decrease was mainly
due to lower SMP exports,
with Malaysia, Vietnam
and Kuwait each reducing
their volumes by more than
50%. The decrease was
partially offset by higher
export volumes of fluid
milk products.
Exports for the 12 months
to July were down 1.8 %, or
12,598 MT, on the previous
comparable period.
The decrease was mainly
due to lower volumes of
fluid milk products and
whey powder, partially
offset by higher export
volumes of cheese.
NEW ZEALANDAUSTRALIAEUROPEAN UNIONUSA
%%%
%%
To view a chart that
illustrates year‑on‑year
changes in exports –
%
%
Change for August 2025
compared to August 2024
Change for July 2025
compared to July 2024
Change for July 2025
compared to July 2024
Change for July 2025
compared to July 2024
Change for the 12 months
to July 2025
Change for the 12 months
to July 2025
Change for the 12 months
to August 2025
Change for the 12 months
to July 2025
8.6
1.8
17.7
0.2
2.4
2.8
0.8
1.1
%
1 Excludes UK.

4
OUR MARKETS
Global Imports
Asia, Latin America and
China monthly imports
increased. Middle
East & Africa monthly
imports decreased
Latin America dairy
import volumes increased
0.6%, or 1,390 MT, in July
compared to the same
period the year prior.
The increase was mainly
due to higher import
volumes of SMP and whey
powder by Mexico, partially
offset by lower import
volumes of WMP by Brazil.
Imports for the 12 months
to July were up 5.3%, or
137,975 MT, on the previous
comparable period.
The increase was mainly
due to higher import
volumes of SMP and
cheese by Mexico and
the Dominican Republic,
partially offset by lower
import volumes of WMP
and AMF by Brazil and
Mexico, respectively.
Asia (excluding China)
dairy import volumes
increased 4.8%, or
22,907 MT, in July
compared to the same
period the year prior.
The increase was mainly
due to higher import
volumes of SMP, and
fluid milk products by
the Philippines.
Imports for the 12 months
to July were up 4.4%, or
229,212MT, on the previous
comparable period.
The increase was mainly
due to higher import
volumes of fluid milk
products by the Philippines
and Vietnam, and SMP by
the Philippines and Japan.
Middle East and Africa
dairy import volumes1
decreased 3.7%, or
18,557 MT, in July compared
to the same period the
year prior.
The decrease was mainly
due to lower import
volumes of fluid milk
products by the United
Arab Emirates.
Imports for the 12 months
to July were down 3.6%, or
216,129 MT, on the previous
comparable period.
The decrease was
mainly due to lower
import volumes of fluid
milk products by the
United Arab Emirates and
WMP by Saudi Arabia.
China dairy import
volumes increased by
6. 8%, or 16,802 MT, in
August compared to the
same period the year prior.
The increase was mainly
due to higher import
volumes of whey powder
from the US, and fluid
milk products, with more
than 85% originating from
New Zealand and Europe.
Imports for the 12 months
to August were up 3.2%, or
91,107 MT, on the previous
comparable period.
The increase was mainly
due to higher import
volumes of whey powder.
LATIN AMERICAASIAMIDDLE EAST & AFRICACHINA
1 Estimates are included for those countries that have not reported data.
%%%%
%%
Change for July 2025
compared to July 2024
Change for August 2025
compared to August 2024
Change for July 2025
compared to July 2024
Change for July 2025
compared to July 2024
Change for the 12 months
to July 2025
Change for the 12 months
to July 2025
Change for the 12 months
to July 2025
To view a chart that
illustrates year‑on‑year
changes in imports –
6.84.80.6
4.43.6
%
Change for the 12 months to
August 2025
3.2
3.7
5.3
%

To view a table that shows
detailed milk collections in
New Zealand and Australia
compared to the previous
season‑
Season-to-date 1 July–31 August
compared to prior season
Season-to-date 1 June–31 August
compared to prior season
Season-to-date 1 June–31 August
compared to prior season
Season-to-date 1 June–31 August
compared to prior season
Increase for August 2025
compared to August 2024
Increase for August 2025
compared to August 2024
Increase for August 2025
compared to August 2024
Increase for August 2025
compared to August 2024
3.51.6
2.4
3.42.0
2.43.53.2
VOLUME (M LITRES/DAY)
JUNJULAUGSEPOCTNOVDECJANFEBMARAPRMAY
2024/25
2023/242022/23
0
10
20
30
40
50
60
70
80
5
OUR MARKETS
Fonterra Milk Collections
NEW ZEALANDNORTH ISLANDSOUTH ISLANDAUSTRALIA
New Zealand Milk Collections
Fonterra's Australia
collections
in August
were 7.3 million kgMS,
3.5% higher than August
last season.
The increase was mainly
due to favourable pasture
conditions, supported
by rainfall across most
regions. Despite the rainfall,
milk supply continues
to be constrained by
the ongoing drought
recovery and lower herd
sizes, however farm gate
margins are favourable for
farmers not still reliant on
brought‑in fodder.
Season‑to ‑date collections
for Fonterra Australia are
12.8 million kgMS, 2.4%
above last season.
North Island milk
collections in August
were 72.3 million kgMS,
3.4% higher than August
last season.
The increase was mainly
due to favourable
weather conditions
across most regions, with
cooler temperatures
and longer periods of
sunlight compared to
historical averages.
Soil moisture was at field
capacity for all parts of
the North Island except
for some drier areas in
Hawkes Bay.
Season‑to ‑date collections
are 104.2 million kgMS,
3.5% above last season.
South Island milk
collections in August
were 27.6 million kgMS,
1.6% lower than August
last season.
The decrease was mainly
due to variable weather
conditions across the
region, with some parts
experiencing soil moisture
levels above capacity.
This was partially offset
by longer periods of
sunlight compared to
historical averages.
Season‑to ‑date collections
are 33.1 million kgMS, 2.4%
above last season.
Fonterra's New Zealand
collections for August
were 99.9 million kgMS,
2.0% above August
last season.
The increase was mainly
due to favourable weather
conditions in the North
Island, with collections
comfortably above August
last year, partially offset
by lower collections in the
South Island.
Season‑to ‑date collections
are 137.3 million kgMS, 3.2%
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 23SEP 24JAN 25MAY 25SEP 25MAY 24JAN 24
800
950
1,100
1,400
1,250
0.54
0.57
0.60
0.63
0.66
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 following GDP figures that showed
a sharper‑than‑expected contraction in New Zealand’s
economy during Q2 2025, leaving output down 0.6% over
the past year. Markets swiftly priced in further RBNZ easing
of at least 50bps by year‑end, with a small chance of 75bps.
Meanwhile, although the US Federal Reserve cut rates at
its September meeting, its accompanying commentary
was more cautious than anticipated, emphasising a
data‑dependent stance on future moves. The NZD/USD
exchange rate subsequently fell to a five‑month low.
Fonterra GDT results
at trading event 388
16 September 2025:
The next trading event will be held on 7 October 2025. Visit www.globaldairytrade.info for more information.
Change in Fonterra’s
weighted average
product price from
previous event
0.1
Fonterra’s weighted
average product price

(USD/MT)
4,081
USD
Fonterra product
quantity sold on GDT
000’ MT
37.8
NORTH ASIA (INCLUDING CHINA)
SOUTH EAST ASIA
MIDDLE EAST AND AFRICA
LATIN AMERICA
OTHER
USD 6,802/MT
1.7
AMF
USD 4,814/MT
2.2
CHEDDAR
USD 3,787/MT
0.5
WMP
USD 2,613/MT
0.0
SMP
USD 6,892/MT
0.7
BUTTER
37,757
MT
LATEST AUCTION
144,618
MT
FINANCIAL
YEAR‑TO‑DATE

7
Our Performance
Fonterra reports
continued strong
performance in FY25
Fonterra released its
FY25 annual results
this month, showing
the Co‑op generated
$26 billion in revenue and
delivered $16.2 billion
in total cash returns
to shareholders.
The final Farmgate
Milk Price for the
2024/25 season was
$10.16 per kgMS,
equating to $15.3 billion
in milk payments to
New Zealand farmers, up
$3.8 billion on last year.
The Co‑op also
announced a FY25
full year dividend of
57 cents fully imputed,
and at the upper end
of its dividend policy,
equating to $916 million
of cash to shareholders
and unit holders. This is
comprised of a 22 cent
interim dividend and
35 cent final dividend.
CEO Miles Hurrell says
FY25 was one of the
Co‑op’s strongest
years yet in terms of
shareholder returns.
“We continue to see
good demand from
global customers for our
high‑quality products
made from New Zealand
farmers’ milk and this is
driving returns through
both the Farmgate Milk
Price and dividends,”
he says.
“Our vision is to be the
source of the world’s
most valued dairy. Our
strategy is designed
to grow end‑to ‑end
value for farmers by
focusing on being a B2B
dairy nutrition provider,
working closely with
customers through
our high‑performing
Ingredients and
Foodservice channels.
“During the year, we’ve
taken important steps
towards this goal,
including running a
robust divestment
process for global
Consumer and
associated businesses.
This resulted in an
agreement to sell the
businesses to Lactalis
for $4.22 billion, subject
to approvals.
“We’re also positioning
the Co‑op to deliver
further value through
our Foodservice and
Ingredients businesses,
including continuing
to invest in new
manufacturing capability
to meet growing
customer demand for
our high‑value products.
“We have a pipeline
of potential growth
investments we’re
assessing, with plans
to invest up to $1 billion
over the next three to
four years in projects to
generate further value
and drive operational
cost efficiencies.”
The Co‑op delivered
a Return on Capital of
10.9%, in line with the
target range of 10‑12%.
Looking ahead, the
Co‑op has revised its
forecast milk collections
for the 2025/26 season
from 1,490 million kgMS
to 1,525 million kgMS.
The 2025/26 forecast
Farmgate Milk Price is
$10.00 per kgMS with
a range of $9.00‑$ 11.00
per kgMS.
While there are always
risks that may impact
future performance,
Fonterra continues
to target dividend
payments within its
policy range of 60%‑80%
of earnings in the
medium term.
“Our ongoing balance
sheet strength,
combined with our
focused strategic
direction, means the
Co‑op is well prepared
for the future and
positioned to continue
delivering positive
returns to shareholders,”
Hurrell says.

Our Co-op
8
New UHT cream
plant takes shape
in Southland
Construction of
Fonterra’s new UHT
cream plant at Edendale
is on track, with just one
year to go until the first
product rolls off the line.
Established in
1881, Edendale is
New Zealand’s oldest
dairy processing site and
was the first to export
refrigerated cheese.
Come next August, it
will celebrate another
milestone as Fonterra’s
first South Island site
producing and exporting
UHT cream.
Around $150 million is
being invested in the
expansion, which is part
of the Co‑op’s strategy
to grow capacity for
high‑value products.
The new plant will initially
produce more than
50 million litres of UHT
cream each year to meet
growing demand across
Asia, with plans to more
than double that capacity
by 2030.
Visible from State
Highway 1, the site is
taking shape almost
nine months after
construction began
in January.
The walls and concrete
slabs for processing
and packing are up,
and the roof is mostly
on. The product store
is well underway,
and construction
of the distribution
warehouse has begun.
External excavation is
nearly complete and
foundations for the
container yard are
progressing well.
Andrew Johns, Fonterra’s
General Manager of
Lower South Island
Operations, says the
project is on track.
“We’re making sure
we deliver a safe
plant that can then
produce high‑quality
product that exceeds
customer expectations.”
Currently, more than
50 people are working
on the build, with that
number expected to
grow to 150 over the
coming months.
“We're really excited
about this opportunity
to build a new plant here
in Southland and supply
UHT cream for growing
markets,” Johns says.
“There’s good energy
on site and I hope that’s
filtering through to the
community too.”
Demand for Fonterra’s
UHT products continues
to grow, with a projected
4% compound annual
growth rate over the
next seven years.
The UHT cream
produced at Edendale
will be sold through the
Co‑op’s Foodservice
business, Anchor Food
Professionals™, as Anchor
Whipping Cream.
Anchor Whipping
Cream’s formulation
was developed by
Fonterra’s Research and
Development Centre in
Palmerston North and is
an example of how the
Co‑op uses innovation
to add value to its
farmers’ milk.
The cream is a favourite
in China, where
it’s used in about
400 million beverages
and 260 million cakes
each year.
It’s also popular in
Malaysia and Vietnam.
About 5,000 egg tarts
made with Anchor
Whipping Cream are
sold every day by one
of Fonterra’s customers
in Malaysia, while sales
of the cream in Vietnam
almost doubled in value
between 2022 and 2024.

PRODUCTION
AUSTRALIAAVERAGE
UNITED STATES
NEW ZEALANDEU
JUL 25FEB 25
JAN 25DEC 24OCT 24SEP 24AUG 25APR 25JUN 25MAY 25MAR 25NOV 24
LIQUID MILK (M LITRES)
-1,000
-750
-500
-250
0
500
250
EXPORTS
AUSTRALIA
UNITED STATES
NEW ZEALANDEU
APR 25MAR 25FEB 25DEC 24NOV 24OCT 24SEP 24AUG 25JUL 25JUN 25MAY 25JAN 25
MT (000
s
)
-100
-50
0
100
50
150
AVERAGE
IMPORTS
MIDDLE EAST & AFRICALATIN AMERICA
ASIACHINA
APR 25MAR 25JAN 25DEC 24SEP 24OCT 24NOV 24JUN 25JUL 25AUG 25FEB 25MAY 25
MT (000
s
)
-80
-40
0
120
80
40
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 July; 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 and
Australia compared to
the previous season.
MILK COLLECTION
(MILLION KGMS)
AUGUST
2025
AUGUST
2024
MONTHLY
CHANGE
SEASON-
TO-DATE
2025/26
SEASON-
TO-DATE
2024/25
SEASON-
TO-DATE
CHANGE
Total Fonterra
New Zealand
99.998.02.0%137.3133.03.2 %
North Island72.370.03.4%104.2100.73.5%
South Island27.628.0(1.6%)33.132.32.4%
Australia7.37.03.5%12.812.52.4%
2025/26 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
HEDGED (%)
FOREIGN
EXCHANGE
OPTION
COVER
REMAINING
IN HEDGED
AMOUNT (%)
21 August 2025$10.00 /
$9.00‑$ 11.00
0.58210.588865%17%
29 May 2025$10.00 /
$8.00‑$ 11.00
0.59680.595148%10%
As at the most recent update to the 2025/26 season forecast Farmgate Milk Price
on 21 August 2025:
• Fonterra had hedged approximately 65% of the full year forecast USD cash flows
related to the 2025/26 season Farmgate Milk Price.
• Of that 65%, approximately 17% was hedged with foreign exchange options which
had not yet expired or been exercised.
• If the remaining 35% of the forecast USD cash flows were to be hedged at the 21
August 2025 spot rate of 0.5821, the average NZD/USD conversion rate for the
2025 season would be 0.5888.
• Also shown for information are the equivalent measures at the date of the previous
forecast of the 2025/26 season Farmgate Milk Price on 29 May 2025.

WEIGHTED AVERAGE PRICEQUANTITY SOLD
NOV 24OCT 24AUG 25MAY 25SEP 25FEB 25MAR 25DEC 24APR 25JUN 25JUL 25JAN 25
10,000
16,000
22,000
34,000
28,000
40,000
3,400
3,700
4,300
4,000
4,600
4,900
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 SEPTEMBER 2025)
YEAR-TO-DATE

(FROM
1 AUGUST 2025)
Quantity Sold on GDT
(Winning MT)
37,757144,618
Change in Quantity Sold on GDT
over same period last year
3.3%3.2 %
Weighted Average Product Price
(USD/MT)
4,0814,200
Change in Weighted Average
Product Price over same period last year
4.9%9.0%
Change in Weighted Average
Product Price from previous event
(0.1%)‑
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.