September 4, 2013

Synlait Milk lifts milk price forecast for 2014 season

Synlait Milk increase its forecast milk price for the fiscal 2014 season from US$7 per kilogramme milk solids (kgMS) to US$8/kgMS as international commodity prices continue to soar.

The company also lifted its advance rates for the season effective from August paid September from US$4.50/kgMS to US$5.00/kgMS.

Synlait Milk announced last week that it will process more milk than forecast this season following a decision to take a significant allocation of Dairy Industry Restructuring Act (DIRA) milk that will increase total production volumes of its ingredients products.

Synlait Milk Managing Director John Penno says the company remains confident in achieving its forecast financial result for fiscal year 2014.

"Higher than forecast revenue from high commodity prices and additional processing volumes mean we remain confident of achieving our fiscal year 2014 earnings targets at these increased milk prices."

Synlait Milk is focused on becoming a trusted supplier of choice to some of the world's leading milk-based health and nutrition companies. The company collects milk from approximately 159 farms in Canterbury, in the South Island of New Zealand, and manufactures a range of value added ingredient products and infant formula and nutritional products.