The Dunsandel-based company says its revised forecast, announced to NZX last month, reflects weaker global demand since September, when its last update was provided.
Demand has weakened as the cost of living increases globally, and economic activity in China remains suppressed from Covid-19 restrictions.
“Based on softer dairy commodity prices across the first half of the 2022-23 season, and the outlook for the remainder of the season, we believe it is appropriate to lower our forecast base milk price to $9/kg,” chief executive Grant Watson said.
Synlait says it will continue to monitor movements and keep its farmer suppliers up to date.
The lower forecast puts it on the same page as Fonterra, which last month lowered its midpoint to $9/kg after reducing its forecasted farmgate milk price range to $8.50-$9.50/kg, from the previous $8.50-$10/kg.
Many banks have their own forecast at this level or slightly lower.
Synlait confirmed the membership of its audit and risk committee members led by chairman Paul Washer. The committee includes Bright Dairy appointed director Min Chen and independent directors Paul McGilvary and Simon Robertson.
Synlait’s People, Environment and Governance Committee members are chairman Paul McGilvary, independent directors Paul Washer and Simon Robertson and Bright appointed directors Ruth Richardson and Yang Sihang.
tim.cronshaw@alliedpress.co.nz
