Synlait shares take a hammering
Troubled milk processor Synlait's share price is taking a hammering as nervous investors offload their stakes.
Canterbury milk processor Synlait says its farmer suppliers will get a record base milk price of $9.25/kgMS this season.
The company lifted its forecast base milk price by a whopping $1.25 on the back of soaring global dairy prices.
Synlait chief executive Grant Watson, who started in his new role this month, says dairy commodity prices have strengthened significantly as strong global demand has outrun restricted supply.
“The New Zealand milk price is also benefiting from a weakening New Zealand dollar against the US dollar,” he says.
Watson expects dairy prices to remain strong for some time.
He notes that as seen in most commodities, Covid is having a significant impact as illness and lockdowns impact production and supply chains. This has been amplified by rising production costs driven by strong inflation and ongoing pressure on our industry to decarbonise.
“As a result of this ongoing demand Synlait believe dairy commodity prices could remain high for some time as these dynamics will take time to unwind, supporting the record milk price forecast.”
Watson says Synlait will continue to monitor movements and keep its farmer suppliers updated. Its next milk price announcement will come in May.
The strong commodity dairy prices mean all NZ farmers are in line for a record payout this season.
Fonterra has announced a forecast milk price range of $8.90 to $9.50/kgMS with a midpoint of $9.20/kgMS. Its previous record milk price - $8.40/kgMS- was paid in 2013/14 season.
Open Country Dairy will this month pay its farmer suppliers a record $9.01/kgMS for milk supplied in November and December.
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.
OPINION: Scientists claim to have found a new way to make a substitute for cow's milk that could have a…
OPINION: The Irish have come up with a novel way to measure cow belching, which is said to account for…