Thursday, 05 September 2024 09:55

Synlait ups forecast milk price

Written by  Staff Reporters
Synlait says it will lift its forecast milk price to $8.60/kgMS. Synlait says it will lift its forecast milk price to $8.60/kgMS.

Embattled milk processor Synlait is the latest to increase its forecast base milk price for the 2024/25 season.

In an announcement to the NZX this morning, Synlait said it would lift its forecast to $8.60/kgMS, up from $8/kgMS.

Despite this increase, the milk processor says it will continue to take a ‘conservative’ approach to its 2024/25 forecast due to exposure to what it describes as volatile future dairy commodity prices earlier in the season.

“Retention of Synlait’s milk supply remains a critical priority for the company,” the statement says. “Synlait is committed to delivering a competitive milk price and advanced rate profile, which has also been lifted for 2024/2025 to ensure the company’s on-farm offering remains attractive to farmer suppliers.”

Synlait says it will continue to monitor future forecast movements and its final milk price for the 2023/24 season will be confirmed when the company’s full-year results are revealed at the end of this month.

The announcement comes just two weeks after Fonterra announced its new forecast range of $7.75 - $9.25/kgMS, meaning a midpoint of $8.50/kgMS.

It also comes as Synlait attempts to pass a recapitalisation plan which would see $218 million in shares offered to its two largest shareholders, Bright Dairy of China and the a2 Milk Company (a2MC).

Currently, Bright Dairy owns 39% of Synlait but under the deal that would increase to approximately two thirds of the listed company. Meanwhile, a2MC would retain its 19.83% stake.

A special shareholder meeting has been scheduled for September 18 to confirm the recapitalisation.

More like this

Fonterra gives $250,000 for wetlands repair

Through its new partnership with New Zealand Landcare Trust, Fonterra has committed to funding ten $25,000 grants for wetland restoration in communities across the country.

Fonterra woos investors for consumer business

The divestment process for Fonterra's global consumer business is gaining momentum, with the co-op meeting global fund managers this week on a potential listing of the co-operative's newly formed Mainland Group.

Featured

Court decision a win for Southland farmers

Federated Farmers says it welcomes a recent court decision which granted a stay on rules in the Southland Water and Land Plan until legislative changes can be made by government.

National

Machinery & Products

Gong for NH dealers

New Holland dealers from around Australia and New Zealand came together last month for the Dealer of the Year Awards,…

A true Kiwi ingenuity

The King Cobra raingun continues to have a huge following in the New Zealand market and is also exported to…

Data crucial to managing water

Watermetrics was formed as a water data collector and currently supplies and services modern technology such as flow meters, soil…

» Latest Print Issues Online

Milking It

King Island rescue

OPINION: Two Australian cheesemakers have rescued the iconic Tasmanian cheese company King Island Dairy.

Baileys vegan flavour

OPINION: World famous liqueur maker Baileys is the latest to dabble with plant-based products.

» Connect with Dairy News

» eNewsletter

Subscribe to our weekly newsletter