New Zealand’s Synlait slashes dairy price forecast amid COVID-19 uncertainty
Synlait Milk cut its milk price forecast for the current season on 28 May as global commodity prices dip.
28 May 2020
1 minute read
According to Reuters, Synlait Milk cited lower dairy prices alongside a global slump in commodity prices during the coronavirus crisis when it cut its milk price forecast.
The New Zealand-based dairy company said it now forecasts base milk price for the 2019-2020 season to be NZ$7.05 per kilogram of milk solids (kgMS), versus $7.25 kgMS earlier this year.
Synlait, which is part-owned by a2 Milk Company, set the opening forecast for the 2020-2021 season at an even weaker figure of NZ$6.00 kgMS.
"We don't yet have a clear view of COVID-19's economic impact, but we do know it will impact demand, resulting in our decision to release a conservative opening forecast for the 2020/2021 season," Chief Executive Officer Leon Clement said.
As of last week, global dairy prices have declined nearly 14 percent compared with the prices on 7 January.
The world's biggest dairy exporter Fonterra also announced a cut to farmgate prices last week for the 2020-21 season as demand falters during restrictions to contain the virus.
Read more about this story on Reuters.
