Synlait Matches Fonterra’s Milk Price Forecast

Synlait, a prominent New Zealand dairy company, has recently announced its opening forecast base milk price for the 2025-2026 season, set at $10 per kilogram of milksolids (kg MS). This decision aligns with Fonterra’s forecast, which was unveiled earlier on May 29. According to Synlait, this forecast signifies their commitment to aligning with industry standards concerning advance rates and milk prices, amidst a persistent positive outlook for market prices.

However, the company remains cautious, acknowledging that the ongoing geopolitical uncertainties could potentially lead to varying outcomes in the upcoming season. These external factors pose challenges that may impact the precise realization of the forecasted prices.

Further financial details are anticipated, as Synlait plans to confirm its final milk price for the current 2024/25 season on September 29 when they release their full-year financial results. Notably, the projected price for this period also remains set at $10/kg MS, representing a marked increase of 25% from an initial prediction of $8/kg MS.

The dairy industry observes these announcements with interest, as both Synlait and Fonterra's projections could have significant implications for stakeholders, including suppliers and investors, who are keenly assessing the broader market conditions and Synlait’s strategic response.