Synlait Milk has raised its milk price forecast for the 2024/25 season to $5.55 per kilogram of milk solids, driven by strengthening global commodity prices.
New Zealand’s Synlait Milk, a leading dairy producer, has raised its base milk price forecast for the 2024/25 season, citing the continued strength of global commodity prices. The company, based in the Canterbury region of New Zealand, now expects to pay $5.55 (NZ$9.50) per kilogram of milk solids (kgMS), an increase from its previous forecast of $5.05 (NZ$9.00) per kgMS.
Synlait Milk is a key player in the New Zealand dairy industry, known for its high-quality dairy products and its commitment to sustainability and innovation. The revision in the milk price reflects a positive outlook for the sector, driven by tightening global supply and steady demand for dairy products. This price adjustment follows a similar move by Fonterra, a rival dairy company, earlier in the month.
The increase in milk prices comes at a time when global dairy markets are experiencing a surge, with Synlait’s decision expected to provide financial relief to local farmers. Rising prices are likely to support farmer incomes, helping them navigate challenges such as fluctuating input costs and unpredictable climate conditions.
Synlait’s move signals confidence in the sector, which is benefiting from stronger commodity prices despite the ongoing pressures faced by producers. The adjustment to the milk price forecast is a reflection of the broader global trends that are impacting the dairy industry, including supply chain disruptions and increased demand in key markets.
For Synlait, this revision also serves as a signal of its strategic approach to balancing the interests of farmers, consumers, and shareholders in a rapidly changing global dairy market.
