New Zealand's Synlait Milk provides milk price forecast for 2025/26 season (updated)

Synlait Milk

05/06/2025 22:42

Updates with details from paragraph 2 onwards

June 6 (Reuters) - New Zealand's Synlait Milk SML.NZ set its opening base milk price for the 2025/26 season at NZ$10 per kilogram of milk solids (kgMS) on Friday, representing a 25% rise from the NZ$8 per kgMS forecast for the 2024/25 season.

The projection is based on continued optimism regarding prices and aligns with the industry rates, the dairy producer said.

Last week, competitor Fonterra FCG.NZ projected steady market demand in the near term and announced a preliminary farmgate price estimate of NZ$10 per kgMS for the 2025/26 season.

The upbeat pricing signals from both dairy giants reflect growing confidence in global dairy markets, driven by resilient demand from key export regions and tightening supply dynamics.

In its March half-year results, Synlait Milk reported a net profit of NZ$4.8 million ($2.90 million), reversing a loss from the previous year. However, the company cautioned that the second half might be weaker due to cost-cutting efforts and other headwinds.

($1 = 1.6570 New Zealand dollars)

 (Reporting by Kumar Tanishk in Bengaluru; Editing by Mohammed Safi Shamsi)

 ((Tanishk.Kumar@thomsonreuters.com; X: @thatstanishk;))