The new figure for the 2019 year is $6.25/kg MS, compared with the previous forecast from last September of $6.75.
The company had signalled at the annual meeting in late November that the higher figure was looking less likely amid a fall in commodity prices.
Prices have started to pick up again and Synlait chief executive Leon Clement said a continuing recovery was “considered realistic in light of supportive global demand fundamentals”.
Prices had been falling earlier due to global demand reacting to very strong NZ milk production and expectations of better production growth in the Northern Hemisphere.
Synlait had been regularly communicating with its milk suppliers about the fluctuations in global pricing, he said.
The next price forecast update from the company will be in June.
A $6.25/kg MS price would be a 7.8% reduction on the 2018 full year pay-out of $6.78, made up of $6.65 base price and 13c premium payments. The 2017 pay-out was $6.30/kg MS, made up of $6.16 base price and 14c premium.
