Synlait cuts milk price forecast for 2022/23
The company cited weak global demand as the cause
14 March 2023
1 minute read
By: New Zealand's Synlait Milk on Tuesday cut its base milk price forecast for the 2022/2023 season due to subdued global economic activity and a slower-than-expected demand recovery in China following COVID-19, reported Reuters.
The dairy milk producer reduced its forecast base milk price to NZ$8.50 per kilogram of milk solids (kgMS) from NZ$9.00 per kgMS.
The company said global milk production showed signs of a recovery in late 2022, adding further downward pressure to dairy commodity prices and thereby reducing the price Synlait achieved on its products.
This marks the second time in three months that Synlait has cut its milk price forecast. In December, the company trimmed its base milk price estimate to NZ$9.00 per kgMS to reflect weaker global demand amid cost-of-living pressures.
Synlait's update comes after dairy giant Fonterra Co-operative Group FCG.NZ last month slashed its farmgate milk price range forecast and lowered its milk collection outlook for the 2022/23 season on account of softening demand and adverse weather conditions.
