Synlait shares take a hammering
Troubled milk processor Synlait's share price is taking a hammering as nervous investors offload their stakes.
Synlait's new chief executive Grant Watson says dairy commodity prices have strengthened significantly as strong global demand hs outrun restricted supply.
"As seen in most commodities, Covid-19 is having a significant impact as illness and lockdowns impact production and supply chains," says Watson, who joined Synlait from Taupo-based Miraka.
"This has been amplified by rising production costs, driven by strong inflation and ongoing pressure on our industry to decarbonise.
"The New Zealand milk price is also benefitting from a weakening New Zealand dollar against the US dollar."
Watson expects the ongoing demand for dairy products to keep prices high for some time.
Fonterra chief executive Miles Hurrell says there is consistent demand for dairy at a time of constrained global milk supply.
"In general, demand globally remains strong - although, we are seeing this vary across our geographic spread," says Hurrell.
Overall, global milk supply growth is forecast to track below average levels, with European milk production growth down on last year and US milk growth slowing due to high feed costs.
New Zealand milk supply is also constrained due to varied weather and challenging growing conditions.
Last month Fonterra reduced its forecast milk collections for 2021-22 from 1,525 million kgMS to 1,500 million kgMS.
South Waikato farm manager Ben Purua’s amazing transformation from gang life to milking cows was rewarded with the Ahuwhenua Young Maori Farmer award last night.
Bankers have been making record profits in the last few years, but those aren’t the only records they’ve been breaking, says Federated Farmers vice president Richard McIntyre.
The 2023-24 season has been a roller coaster ride for Waikato dairy farmers, according to Federated Farmers dairy section chair, Mathew Zonderop.
Ministry for Primary Industries (MPI) director general Ray Smith says job cuts announced this morning will not impact the way the Ministry is organised or merge business units.
Scales Corporation is acquiring a number of orchard assets from Bostock Group.
Family and solidarity shone through at the 75 years of Ferdon sale in Otorohanga last month.
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