Monday, 25 September 2023 09:45

Synlait matches Fonterra

Written by  Sudesh Kissun
The listed Canterbury processor paid out an average of $0.27/kgMS was paid for incentives. The listed Canterbury processor paid out an average of $0.27/kgMS was paid for incentives.

Synlait has matched Fonterra in delivering a final milk price of $8.22/kgMS for last season.

In addition, the listed Canterbury processor paid out an average of $0.27/kgMS was paid for incentives, taking the total average milk payment for 2022-23 to $8.49/kgMS.

The base milk price is down from Synlait’s highest payout, $9.30/kgMS, in the prior season.

The company says commodity prices corrected downwards across the 2022-23 season in response to recovering global supplies and softening demand.

Synlait is sticking to its $7/kgMS forecast milk price for this season.

“Increases in the last two Global Dairy Trade events, after a period of significant downward pressure, means Synlait can confirm that its base milk price forecast for the 2023-24 season will remain at $7/kgMS,” it says.

Fonterra last week also delivered a final 2022-23 season farmgate milk price of $8.22/kgMS.

The co-op also announced a strong full year dividend of 50c/share – comprising an interim dividend of 10c/share and a final dividend of 40c/share.

The co-op also pointed out that it recently returned tax free 50c/share to shareholders and unit holders in August, following the divestment of Soprole, giving a final cash pay-out to farmers of $9.22/share backed kgMS.

Fonterra has a forecast 2023/24 Farmgate Milk Price range of $6-$7.50/kgMS, with a midpoint of $6.75, reflecting “reduced demand for whole milk powder from key importing regions”.

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