Synlait Raises Milk Price Forecast to $9/kgMS Amidst Global Commodity Strength
Source: DairyNews.today
Canterbury-based dairy processor Synlait has announced an upward revision to its forecast base milk price for the 2024/2025 season, now targeting $9 per kilogram of milk solids (kgMS).
This 40-cent increase aligns Synlait’s forecast with Fonterra’s midpoint, indicating a solidified payout level as both companies respond to global market dynamics.
Synlait attributed the adjustment to sustained strengthening in global commodity prices, driven by tightening supply conditions worldwide. This supply contraction has bolstered commodity values, supporting higher returns for dairy producers and enabling Synlait to deliver a competitive payout to its farmer suppliers.
"Synlait remains firmly committed to ensuring an attractive farmgate milk price and advanced rate structure, reinforcing our dedication to our farmers," the company stated. By prioritizing a compelling on-farm offering, Synlait aims to maintain a robust supplier network in the face of ongoing market fluctuations.
The revised forecast reflects the best data available to Synlait, as the company closely monitors global trends that could influence the dairy sector in the coming year.
Synlait attributed the adjustment to sustained strengthening in global commodity prices, driven by tightening supply conditions worldwide. This supply contraction has bolstered commodity values, supporting higher returns for dairy producers and enabling Synlait to deliver a competitive payout to its farmer suppliers.
"Synlait remains firmly committed to ensuring an attractive farmgate milk price and advanced rate structure, reinforcing our dedication to our farmers," the company stated. By prioritizing a compelling on-farm offering, Synlait aims to maintain a robust supplier network in the face of ongoing market fluctuations.
The revised forecast reflects the best data available to Synlait, as the company closely monitors global trends that could influence the dairy sector in the coming year.
