Friday, March 29, 2024

Synlait raises its milk price

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Synlait Milk has lifted its milk price forecast by 25c/kg of milksolids above previous levels.
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The payout to suppliers for the season was now expected to be $6.25/kg MS, chairman Graeme Milne said.

In late November, the manufacturing exporter had forecast a $6 price.

“International dairy commodity prices have improved further since November and although they have eased slightly in early 2017. We think $6.25 is now a realistic estimate,” he said.

Global dairy production, with the exception of the United States, had continued to decrease.

However, the industry still needed to work through existing inventory in the supply chain, which had remained higher than expected.

The new forecast meant a return to a financially sustainable milk price for the company’s 200 suppliers after two challenging seasons, managing director John Penno said.

The increase should give them confidence with their cashflow planning.

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