Synlait reduces forecast to $9.30/kg, matching Fonterra

Synlait Milk has put out a high payout forecast for next season but cautioned that volatile...
Synlait Milk has put out a high payout forecast for next season but cautioned that volatile global markets could result in changes. PHOTO: SYNLAIT MILK
Dairy company Synlait Milk is on the same page as Fonterra after cutting its payout forecast to $9.30 a kilogram of milk solids.

The company, which is based in Dunsandel, shaved off 30c/kg about three weeks after Fonterra reduced its range to the same mid-point.

Synlait’s opening forecast of $9/kg for the 2022-23 season is also the same as the major co-op’s midpoint for its $8.25/kg to $9.75/kg range.

Chief executive Grant Watson said some of the shine had come off this season as dairy commodity prices had fallen over the past two months, but this would still be the highest milk price Synlait had paid.

"The 2022-2023 season is starting in a good position, with some product already sold at historically high prices and foreign exchange movements supporting a strong milk price," he said.

Mr Watson cushioned the comment by adding that the final milk price for next season would still depend on an "ever-evolving" global situation.

Synlait says it will continue to monitor movements and keep farmer suppliers posted of any change.

The company’s final milk price for the 2021-22 season will be confirmed when Synlait’s full-year result is released in September.

tim.cronshaw@alliedpress.co.nz

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