Synlait Milk (ASX:SM1)
has increased its milk price forecast for the 2022/2023 season to $9.50 per kilogram of milk solids (kgMS) from $9.00/kgMS.
The New Zealand based milk company said that there is no change to the milk price forecast for the 2021/2022 season, which remains at $9.30/kgMS.
“Based on the current dairy commodity prices we believe that $9.50/kgMS is a balanced forecast for the 2022/23 season,” said chief executive officer Grant Watson.
“The forecasted lift in milk price reflects an improved outlook for 2022/23 dairy commodity prices, following the recent recovery in pricing, and the current strength of the US dollar.”
“Over the next two days we’ll be meeting with our farmers at annual events in the Waikato and Canterbury and it will be great to share this news with them.”
Synlait said that it will continue to monitor movements and keep its farmer suppliers up to date.
Shares last traded at $2.90 yesterday.