Synlait raises milk price forecast 25c to $7.50/kg

Synlait Milk has nudged up its milk price forecast to be on level pegging at one stage with Fonterra’s midpoint, until falling behind this week. Photo: Synlait Milk

The Dunsandel-based processor’s latest prediction for the 2023-24 season now stands at $7.50 a kilogram of milk solids, up 25c a kg.

Synlait says dairy commodity prices have continued to improve since its last benchmark and had underpinned the increase.

While global demand remains subdued, global milk production has tightened, increasing dairy commodity prices.

The revised forecast is expected to bring some relief to Synlait farmer-suppliers operating under tough economic market conditions.

Synlait says forecasts are based on the best information available to it at the time and it will continue to monitor movements.

The increase briefly put Synlait in line with Fonterra’s midpoint until the dairy giant raised its forecast range for the season to $7.30/kg-$8.30/kg, up from $7/kg-$8/kg. Fonterra's midpoint now stands at $7.80/kg.)

tim.cronshaw@alliedpress.co.nz