Friday, 30 June 2017 08:55

Synlait cuts milk price by 10c

Written by 
Synlait managing director and chief executive, John Penno. Synlait managing director and chief executive, John Penno.

Synlait has cut its forecast farmgate milk price for the 2016-17 season by 10c to $6.15/kgMS.

The total forecast milk price is $6.29/kgMS for the season, including 14c premium payments.

That average premium payment will go to Synlait’s Canterbury milk suppliers creating value behind the farmgate with seasonal and special milk progammes such as a2 Milk, Grass Fed and Lead With Pride.

“These premiums reward our suppliers for differentiating milk on their farm. The forecast increase from our 2015-16 premium of $0.11/kgMS reflects a growing number of our suppliers wanting to make more from milk,” says John Penno, managing director and chief executive.

Synlait’s forecast base milk price has been cut from $6.25/kgMS announced in February following a significant drop in the dairy market.

Penno says the company had been signalling to its milk suppliers that the $6.25/kgMS forecast was under pressure because of the market’s rapid downturn. (The GDT price index dropped more than 9% in late February and early March.)

“Gradual price improvements at the end of the season have made up some of the losses taken in March, but those improvements have been too late in the season to maintain the $6.25/kgMS forecast,” says Penno. Synlait’s final milk price for the 2016-17 season will be confirmed in late September.

Its forecast milk price for the 2017-18 season is $6.50/kgMS.

More like this

Synlait's milk price drop

Canterbury milk processor Synlait has reduced its 2019-20 forecast base milk price by 20c to $7.05/kgMS.

Synlait Milk concerned with Covid-19 

Independent milk processor Synlait says Covid-19 has so far had no impact on its financial performance, however the processor remains greatly concerned.

Featured

Lindsay Farm raw milk recall

Raw milk from Central Hawke’s Bay producers Lindsay Farm is being recalled after Campylobacterbacteria was found in some product.

 

Carcase collection impasse

Collection of dead calves from farms around the country has stopped with farmers and the recycling company blaming each other for the impasse.

Taking NAIT seriously

North Otago calf rearer Jared Ovens believes the Mycoplasma bovis outbreak has led to more farmers embracing animal traceability.

» The RNG Weather Report

» Latest Print Issues Online

Milking It

No hidden cameras

A court has ruled that hidden camera footage showing cows being beaten with a steel pipe is unlawful partially on…

Avo milk

You've heard of soy milk and almond milk……now’s time to meet Avocado milk.

» Connect with Dairy News

» eNewsletter

Subscribe to our weekly newsletter