Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Synlait Increases Forecast Milk Price to $6.00kgMS

SYNLAIT MILK LIMITED NZX: SML

ANNOUNCEMENT ASX: SM1

29 NOVEMBER 2016

Synlait Increases Forecast Milk Price to $6.00kgMS

Synlait Milk (NZX: SML; ASX: SM1) has increased their forecast milk price from $5.00 kgMS to $6.00 kgMS for the 2016 / 2017 season.

Synlait planned to provide an updated forecast at the start of February 2017, however Mr Milne said an update now is more appropriate and beneficial for Synlait’s 200 Canterbury milk suppliers.

“We’ve kept a close eye on the global dairy market and the trending increase in dairy prices can’t be ignored. As a result, we’ve increased our forecast milk price to $6.00 kgMS,” said Graeme Milne, Chairman.

Mr Milne said reduced European production over the past three months shows European dairy farmers are responding to lower milk prices.

“Production is also reducing here in New Zealand, but Europe has a much greater impact on overall dairy prices and we’ve seen this in action with dairy prices over the past three months.”

“We are also mindful China’s demand for dairy products is another key driver for global dairy prices. While their demand has risen recently, it’s unclear if - and for how long – it might continue,” said Mr Milne.

John Penno, Managing Director and CEO, said the increased milk price forecast will be well received by Synlait’s milk suppliers.

“Our milk suppliers have been through two tough seasons. I’m really pleased this increase will provide them and their businesses with a higher cash flow than they had planned for at this stage in the season,” said Mr Penno.

“While we’re very pleased to lift milk supplier payments on the back of substantial improvements in commodity prices, we remain cautious about the medium to long term outlook and encourage our milk suppliers to take this into account as they make their plans.”

ENDS




© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Emission Statement: No New Coal Boilers For Fonterra

Fonterra is shaving eleven years off its coal target, as it announces a new commitment to reduce its reliance on coal. More>>

ALSO:

Long Time Coming: Soil Turned On Waimea Dam

After almost 20 years of planning and a 'gruelling' process to keep the project on track, the Waimea Community Dam, one of the Tasman District's largest-ever projects, is now under way. More>>

Where's My Drone Pizza: Govt's Drone Plan 'Will Help Economy Take Off'

The paper Taking Flight: an aviation system for the automated age sets out the Government’s vision for how drones can be better integrated into the current transport system to develop a thriving, innovative and safe sector. More>>

ALSO:

Up 17.% In June Year: Fuel And Rent Drive Inflation

The consumers price index (CPI) rose 0.6 percent in the June 2019 quarter, due to higher prices for petrol and rent, Stats NZ said today. More>>

ALSO: