Synlait increases forecast milk price to $6.25 kgMS
SYNLAIT MILK LIMITED ANNOUNCEMENT
9 FEBRUARY 2017
SYNLAIT INCREASES FORECAST MILK PRICE TO $6.25 kgMS
Synlait Milk (NZX: SML; ASX: SM1) has increased their forecast milk price from $6.00 kgMS to $6.25 kgMS for the 2016 / 2017 season.
“International dairy commodity prices have improved further since our last announcement in November and although prices have eased slightly in early 2017, we believe $6.25 kgMS is now a realistic estimate for the current season,” said Graeme Milne, Chairman.
Mr Milne said global dairy production, with the exception of the United States, has continued to decrease and followed the trend of previous months.
“The industry still needs to work its way through existing inventory in the supply chain, which has remained higher than expected,” said Mr Milne.
John Penno, Managing Director and CEO, said the return to a financially sustainable milk price after two challenging seasons is good news for Synlait’s 200 milk suppliers in Canterbury.
“Our milk suppliers will soon be turning their attention to the off season and this announcement will give them confidence with their cash flow planning,” said Mr Penno.
“We’re grateful for their support and I’m pleased we will be able to reward them for their hard work while market conditions have been tough.”