Synlait Milk Boosts 2023/2024 Price Projection amid Global Dairy Market Shifts
Source: The DairyNews
Synlait Milk, a key player in New Zealand's dairy industry, has revised its base milk price forecast for the 2023/2024 season upward for the second time. The new projection stands at NZ$7.50 per kilogram of milk solids (kgMS), reflecting a positive adjustment from the initial NZ$7.25 per kgMS estimate.
This upward adjustment is attributed to the ongoing improvement in dairy commodity prices, fueled by an uptick in international milk prices and a simultaneous decrease in volumes, as observed in the recent Global Dairy Trade auction hosted by GDT Events in January.
Synlait notes that despite subdued global demand, the tightening of global milk production has contributed to the escalation of dairy commodity prices. The company's decision to raise the forecast aims to provide some relief to its farmer suppliers who are navigating challenging economic market conditions.
This strategic move by Synlait positions the company to adapt to evolving market dynamics and underscores its commitment to supporting its network of farmer suppliers. As global factors continue to influence the dairy sector, Synlait remains proactive in responding to market shifts.
($1 = 1.6372 New Zealand dollars)
Synlait notes that despite subdued global demand, the tightening of global milk production has contributed to the escalation of dairy commodity prices. The company's decision to raise the forecast aims to provide some relief to its farmer suppliers who are navigating challenging economic market conditions.
This strategic move by Synlait positions the company to adapt to evolving market dynamics and underscores its commitment to supporting its network of farmer suppliers. As global factors continue to influence the dairy sector, Synlait remains proactive in responding to market shifts.
($1 = 1.6372 New Zealand dollars)
