Synlait Milk further cuts milk price forecast
The company cited weaker-than-expected commodity prices
31 May 2023
1 minute read
By: New Zealand's Synlait Milk on Wednesday cut its base milk price forecast for a fourth time for the current season due to weaker-than-expected commodity prices, reported Reuters.
The company now expects the base milk price for the 2022/2023 season to be NZ$8.20 per kilogram of milk solids (kgMS), down from NZ$8.30 per kgMS expected earlier.
Synlait also said the opening forecast for the season is NZ$8 per kgMS.
The dairy milk producer said the reduction was driven by weaker-than-expected commodity prices and the continued high cost of lactose imported into New Zealand.
It added that subdued economic activity was also weighing on consumer demand.
"After peaking in March 2022, dairy commodity prices have trended significantly downward with robust improvements in global production currently outweighing the first signs of increased demand," the company said in a statement.
Last week, dairy giant Fonterra Co-operative Group also narrowed its 2022-23 farmgate milk price range due to reduced short-term demand, particularly from China.
