Monday, October 15, 2018
 New Zealand Dairy Company Synlait Increases Milk Price Outlook  

On the back of recent increases in dairy commodity prices, Synlait has increased its milk price forecast for farmer suppliers. New Zealand dairy processor Synlait has increased its milk price forecast by 50c to $5/kg of milk solids (25 c/l) following the recent upturn in dairy commodity prices. Synlait announced the increase in its milk price in the same week that its rival processor Fonterra also lifted its milk price forecast by 50c to $5.25/kg.

Synlait is based in the Canterbury Region of New Zealand and is part controlled by the Chinese conglomerate Bright Dairy, which holds a 39% stake in the company. As well as the milk price increase, Synlait also announced an investment programme of $300m (€198m) on additional facilities for the manufacture of infant formula, consumer packaging, infrastructure requirements and cream manufacturing.

Synlait is a major producer of infant formula and supplies four of the world’s five largest infant formula companies. The company has a long term agreement with the a2 Milk Company providing certainty around supply of a2 Platinum infant formula for the next five years.

Synlait also reported results for its 2015/16 financial year with revenues increasing 22% to $546m (€360m), with profits of $34.4m (€22.7m). The company was able to reduce its net debt position by 18% at year end to $213.9m (€141m).
Source: Farmers Journal



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