Synlait Milk raises forecast as dairy prices recover
Confidence over milk prices to improve, the NZ company said
29 November 2023
1 minute read
By: New Zealand's Synlait Milk raised its base milk price forecast for the current season on Tuesday, as dairy commodity prices recover after facing substantial declines earlier this year, reported Reuters.
The dairy processing company said the revised forecast is underpinned by recovering dairy commodity prices from August, as well as continued strength in the US dollar.
Peer Fonterra Co-Operative Group in October hiked its farmgate milk price forecast for the 2023-24 season, the first time after cutting the target range twice.
In a filing on Tuesday, Synlait said its confidence about milk prices will improve, particularly during "peak milk months", with the revised forecast aiming to reassure its farmer suppliers during tough economic market conditions.
The company said it now expects the base milk price for the 2023-24 season to be NZ$7.25 ($4.34) per kilogram of milk solids (kgMS), compared with NZ$7.00/kgMS forecast earlier. ($1 = 1.6700 New Zealand dollars)
