Synlait Milk raises milk price forecast

 New Zealand's Synlait Milk on Thursday raised its base milk price forecast for the 2024-25 season, as global commodities prices stayed strong, reported Reuters. 

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 had also raised its 2024/25 forecast farm gate milk price range to NZ$8.25-NZ$9.75 per kgMS, citing higher global dairy prices and constrained supply from key producing regions.