LLOYD DOWNING | FONTERRA SHAREHOLDER

THE NEW ZEALAND DAIRY INDUSTRY

A FARMER’S PERSPECTIVE

WELCOME TO NEW ZEALAND

3.9 MILLION COWS

4.2 MILLION PEOPLE

THE FAMILY FARM

INDUSTRY SNAPSHOT – 2006/07

� 3.9M COWS

� 11,000 FARMS

� 15.1 BILLION LITRES

� 1.3 BILLION KG Milksolids

� 934 KG Milksolids AVERAGE PER HA

� 121 HA AVERAGE EFFECTIVE HA

PRODUCTION HIGHEST ON RECORD

� 1,370,308 Lltres PER HERD

� 113,183 KG milksolids PER HERD

� 189 KG MILKFAT PER COW

� 142 KG PROTEIN PER COW

� 330 KG MILKSOLIDS PER COW

INFLATION ADJUSTED PAYOUT

$0.00

$2.00

$4.00

$6.00

$8.00

1996/97 1998/99 2000/01 2002/03 2004/05 2006/07

Payout

Challenges to productivity

� Young Skilled People

� Land Values

� Environment/Climate Change

� Science/technology

FIELDAYS

commercial environment

Where the milk is coming from

A GLOBAL BUSINESS

Thank you