Jan. 29 (BusinessDesk) - Synlait Milk, the NZX-listed milk processor, said it expects to achieve its forecast milk price payout to farmers so long as commodity prices continue to firm for the remainder of the season.
The dairy company reaffirmed its forecast milk price of $6.50 per kilogram of milk solids for the 2017/18 season which runs from June 1 to May 31. However, the company signalled in a statement to the NZX that this forecast is dependent on commodity prices continuing to firm for the rest of the season. Its forecast compares with Fonterra Cooperative Group's expectation of $6.40/kgMS for the current season.
"Global pricing remains unpredictable," said managing director John Penno. "It is too early in the season to give pricing certainty, but we believe there may be a period of price stability over the coming months. Milk prices have largely been dropping since October, but over the past month the strengthening outlook for the global economy, subsequent rising general commodity prices, and the reduced milk production forecast due to difficult weather conditions have seen dairy commodity prices strengthen."
Synlait expects to update its milk price expectations in May.
Its share price last traded at $7.10, having climbed 124 percent over the past year.
(BusinessDesk)
Tina Morrison
Mon, 29 Jan 2018
Mon, 29 Jan 2018
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Synlait Milk reaffirms milk price forecast for 2017/18 season
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