26 Mar 2015

Synlait lifts milk price forecast

8:33 am on 26 March 2015

Despite the on-going uncertainty in the world dairy market, the Canterbury dairy processor and exporter, Synlait, has increased its forecast milk price from $4.40 a kilo of milk solids to between $4.50 and $4.70.

That brings it within range of Fonterra's milk price.

Synlait managing director John Penno said dairy commodity prices picked up faster than expected from their low point in December.

He said the dairy market was still volatile, but it had lifted the season milk price forecast, as well as the advance payment to give its farmer suppliers more certainty.

"It's a little unusual for us to be presenting a range at this stage, given that the season really is closing at this point in terms of sales and revenue, but it does just nod to the on-going volatility in the market. But it will be very close to this at this stage."

Mr Penno said Synlait expected to update its milk price towards the end of May.

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