11 Oct 2012

Synlait tops South Island milk price for last season

2:01 pm on 11 October 2012

Canterbury dairy Synlait Milk is on the hunt for a little more supply, after topping the South Island milk price for the past season.

The processor and exporter is paying an average $6.22 a kilo of milk solids.

The base milk price is $6.14 and seasonal premiums and other special payments top this up.

Fonterra's 2011-12 milk price is $6.08 a kilo plus a dividend of 32 cents a share.

The other dairy company taking milk in Canterbury, Westland Milk Products, confirmed a final payout for the past season of $6.14.

Synlait chairman Graeme Milne says it's produced a competitive payout for the company's 150 suppliers.

He says the company now has three dryers on the site including a small development one and a reasonably large ingredients dryer.

Mr Milne says at the start of last season the company also built an infant nutritional capable plant which has led to new customers in China and other parts of the world.

He says the company is looking for a limited amount of extra milk as it increases production of infant formulas.

These require less milk than other products so although the company doubled capacity it does not need double the amount of milk.

Synlait is majority owned by Chinese company Bright Dairy.