For the 2020-21 season, Synlait has raised its forecast by 35 cents and now expects to pay its 280 farmer suppliers $7.55 per kilogram of milk solids.
Meanwhile, it has opened next season with an $8 per kilogram of milk solids forecast, which is on par with the mid point of Fonterra’s recently announced opening range.
Synlait chief executive John Penno said commodity prices had continued to outperform expectations.
“Predominantly due to strong Chinese demand, combined with a relatively stable FX rate, meaning we are pleased to increase our forecast for this season and next.”
Earlier this month, Synlait was forecasting a significant loss as it continued to be plagued by Covid-19-related disruptions. It expects to make a full-year loss of between $20 million and $30m, compared with last year’s $75.2m.
