NZ's Synlait Milk raises milk price forecast for 2024/25 season (updated)

Synlait Milk

09/10/2024 21:06

(Adds further details and background in paragraph 3-6)
       Oct 10 (Reuters) - New Zealand's Synlait Milk  SML.NZ 
on Thursday raised its base milk price forecast for the 2024-25
season, as global commodities prices stayed strong.
    The company said it now expects the base milk price for the
2024-25 season to be NZ$9 per kilogram of milk solids (kgMS), up
from NZ$8.60 per kgMS.
    The base milk price is what a company pays to farmers for
milk.
    The dairy processing firm said the forecast increase was
driven by "continued strengthening in global commodities prices,
off the back of contractions in global supply".
    Synlait reported a base milk price of NZ$7.83 per kgMS for
the 2023-24 season.
    Peer Fonterra  FCG.NZ  had also raised its 2024/25 forecast
farmgate milk price range to NZ$8.25-NZ$9.75 per kgMS, citing
higher global dairy prices and constrained supply from key
producing regions.
    
        
  
    

 (Reporting by Rajasik Mukherjee in Bengaluru; Editing by Shreya
Biswas and Devika Syamnath)
 ((Rajasik.Mukherjee@thomsonreuters.com;))