Synlait also announced its forecast base milk price for the 2018/2019 season has increased from NZ$6.25 kgMS to NZ$6.40 kgMS (US$4.09 to US$4.19).
Leon Clement, Synlait CEO, said, “The increase to $6.40 kgMS for this season is due to recovering dairy commodity prices since our last update in January 2019.”
“We’ve seen steady improvements in prices since the start of December, recovering a lot of the ground lost earlier in the season.”
Synlait said it is positive about pricing for the 2019/2020 season but acknowledges the $7.00 kgMS relies on pricing remaining robust throughout the season.
“We think that’s realistic in the light of the current slowdown in world supply and strong demand from our key markets,” Clement said.
“But as always, these forecasts are based on the best information available to us and we are recommending that our farmers remain cautious in the face of geopolitical and economic uncertainties. We will continue to assess movements to ensure our dairy farmers are kept up to date.”
Synlait’s final milk price for the 2018/2019 season will be confirmed alongside the annual result announcement in early September 2019. The forecast for the 2019/2020 season will also be updated at this time.