4 Sep 2013

Synlait Milk raises payout forecast

6:36 am on 4 September 2013

Canterbury's Synlait Milk is the latest dairy company to increase its forecast milk payout to farmers, on the back on continuing high international prices.

Synlait has lifted its price from $7/kg of milksolids to $8/kg.

Managing director John Penno says the company remains confident of achieving its forecast financial result for the 2014 financial year.

The company has also increased its advance rate for the season from $4.50/kg to $5/kg, and says it will be processing more milk than expected this season by taking a significant allocation of the milk it is entitled to get from Fonterra under the dairy regulations.

Synlait's payout increase compares with Fonterra's latest forecast of $7.80, with a 32 cents/kg dividend on top of that.

Westland Milk Products has also lifted its milk price to a range of $7.60-$8/kg of milksolids - $1 above its first forecast in May.