New Zealand Dairy company, Synlait Milk (ASX:SM1) has dropped its 2018-19 milk price forecast from $6.75 to $6.25.
Synlait says the change had been expected for some time due to decreasing dairy commodity prices and the possibility was flagged at the annual shareholder meeting in September 2018.
CEO Leon Clement says milk suppliers will not be surprised by the change as the company communicates about fluctuations in global pricing on a regular basis.
Synlait signaled its $6.25 forecast was dependent on milk prices continuing to recover for the rest of the season but that was considered realistic in light of supportive global demand fundamentals
Shares in Synlait Milk (ASX:SM1) closed 3.68 per cent lower at $9.15 on Friday.