Synlait Milk’s (NZX: SML; ASX: SM1) forecast milk price for the 2017 / 2018 season is $6.50 kgMS, in response to increasing confidence that dairy commodity prices are stabilising.
Managing Director and CEO, John Penno, says Synlait is feeling positive about the current market, and the forecast milk price reflects that.
“We start the season with some confidence that supply and demand are more balanced, and this forecast reflects an expectation of dairy prices remaining at current levels,” says Dr. Penno.
“This announcement will be welcomed by our farmers. The start of last season was difficult, and we’re pleased market prices are in a much better position coming into the 2017 / 2018 season,” he said.
Synlait will release an update on the 2016 / 2017 price on 16 June. The final milk price for the 2016 / 2017 season will be announced in late September, along with any update to our forecast milk price for the 2017 / 2018 season.