31 May 2021

Synlait lifts forecast milk price

1:12 pm on 31 May 2021

Synlait Milk has lifted its forecast milk price for the dairy season just ending and given an opening forecast for the one ahead.

Serving fresh milk in a glass vase on a wooden table

Photo: 123RF

For the 2020-21 season, Synlait has raised its forecast by 35 cents and now expects to pay its 280 farmer suppliers $7.55 per kilogram of milk solids.

Meanwhile, it has opened next season with an $8 per kilogram of milk solids forecast, which is on par with the mid point of Fonterra's recently announced opening range.

Synlait chief executive John Penno said commodity prices had continued to outperform expectations.

"Predominantly due to strong Chinese demand, combined with a relatively stable FX rate, meaning we are pleased to increase our forecast for this season and next."

Synlait's final milk price for the 2020 /21 season will be confirmed when the company releases its full-year 2021 result on 27 September. The 2021/22 season forecast will be updated at the same time.

Earlier this month, Synlait was forecasting a significant loss as it continued to be plagued by Covid-19-related disruptions. It expects to make a full-year loss of between $20 million and $30m, compared with last year's $75.2m.