Synlait Lifts Milk Price Forecast Amid Tight Supply and Stronger Commodity Prices
Source: DairyNews.today
Canterbury-based Synlait has raised its milk price forecast to $9 per kilogram of milk solids, aligning with Fonterra’s mid-range forecast for the 2024/25 season. The increase from the previous forecast of $8.60/kg reflects rising global commodity prices and tighter supply, boosting confidence in the market.
In a statement to the NZX stock exchange, Synlait reaffirmed its commitment to offering a competitive milk price, advanced rates, and maintaining an attractive on-farm offering for its suppliers. This latest adjustment follows Synlait’s successful $218 million capital raise, backed by Chinese company Bright Dairy and The a2 Milk Company, which helped stabilize the company’s financial position after facing insolvency warnings.
Synlait’s upd ated forecast mirrors Fonterra’s latest price range of $8.25/kg to $9.75/kg for the 2024/25 season, with Fonterra’s earnings guidance se t at 40-60 cents per share.
Despite the positive outlook, Canterbury farm leaders remain cautious, emphasizing that several months remain before a clearer forecast can be confirmed. Farmers are still grappling with the break-even conditions of the 2023/24 season and are not yet celebrating the near-record payout predictions.
Synlait assured farmers it would continue to monitor market trends and provide updates on any further price movements.
Synlait’s upd ated forecast mirrors Fonterra’s latest price range of $8.25/kg to $9.75/kg for the 2024/25 season, with Fonterra’s earnings guidance se t at 40-60 cents per share.
Despite the positive outlook, Canterbury farm leaders remain cautious, emphasizing that several months remain before a clearer forecast can be confirmed. Farmers are still grappling with the break-even conditions of the 2023/24 season and are not yet celebrating the near-record payout predictions.
Synlait assured farmers it would continue to monitor market trends and provide updates on any further price movements.
