Canterbury-based Synlait has lifted its milk price forecast in line with Fonterra’s mid range of $9 a kilogram of milk solids.
The processor increased the forecast from $8.60/kg, crediting stronger commodity prices and tighter global supply, for the confidence boost.
Synlait told the NZX stock exchange it remained committed to delivering a competitive milk price, advanced rates and to ensure its on-farm offering was attractive to farmer suppliers.
The company has just gone through a capital raise that righted a listing ship.
Smaller shareholders agreed at a special meeting last month at its Dunsandel base to bring in nearly $218million of new money from Chinese company Bright Dairy and The a2 Milk Company.
Leading up to this chairman George Adams had warned insolvency proceedings would start if the equity raise failed.
Synlait’s increased prediction matches Fonterra’s midway point in its latest forecast after an extra 50 cents was added for a new range of $8.25/kg-$9.75/kg for the 2024/25 season.
The big co-op’s earnings guidance is at 40c-60c.
Farmers are not getting carried away with the prosect of a near record payout price with Canterbury leaders warning there were still a few months to go for a more accurate picture of the forecast and they were still dealing with 2023/24’s break-even season.
Synlait said it would continue to monitor and update farmer suppliers of price movements.
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