The company lowered its base milk price for the current season to $9.30 per kilogram of milk solids from $9.60 per kgMS.

The revised milk price mirrors the mid-point of Fonterra’s forecast for the current season.

“While some of the shine has come off the 2021/ 2022 season as dairy commodity prices have fallen over the past two months, this will still be the highest milk price Synlait has ever paid,” chief executive Grant Watson said.

The company also followed Fonterra’s lead by announcing a record opening milk price for the next dairy season of $9 per kgMS.

“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,” Watson said.

“Despite these two factors, the 2022/2023 season final milk price will still depend on an ever-evolving global situation.”

Synlait’s milk price for the current season will be confirmed when it reports its full year financial result in September.

The company posted a strong half year profit in April, driven by higher ingredients sales, commodity price increases and a one-off gain from the sale of one of its properties.