Monday, 25 September 2023 09:45

Synlait matches Fonterra

Written by  Sudesh Kissun
The listed Canterbury processor paid out an average of $0.27/kgMS was paid for incentives. The listed Canterbury processor paid out an average of $0.27/kgMS was paid for incentives.

Synlait has matched Fonterra in delivering a final milk price of $8.22/kgMS for last season.

In addition, the listed Canterbury processor paid out an average of $0.27/kgMS was paid for incentives, taking the total average milk payment for 2022-23 to $8.49/kgMS.

The base milk price is down from Synlait’s highest payout, $9.30/kgMS, in the prior season.

The company says commodity prices corrected downwards across the 2022-23 season in response to recovering global supplies and softening demand.

Synlait is sticking to its $7/kgMS forecast milk price for this season.

“Increases in the last two Global Dairy Trade events, after a period of significant downward pressure, means Synlait can confirm that its base milk price forecast for the 2023-24 season will remain at $7/kgMS,” it says.

Fonterra last week also delivered a final 2022-23 season farmgate milk price of $8.22/kgMS.

The co-op also announced a strong full year dividend of 50c/share – comprising an interim dividend of 10c/share and a final dividend of 40c/share.

The co-op also pointed out that it recently returned tax free 50c/share to shareholders and unit holders in August, following the divestment of Soprole, giving a final cash pay-out to farmers of $9.22/share backed kgMS.

Fonterra has a forecast 2023/24 Farmgate Milk Price range of $6-$7.50/kgMS, with a midpoint of $6.75, reflecting “reduced demand for whole milk powder from key importing regions”.

More like this

Editorial: Fonterra's U-turn

OPINION: Speaking at the Chinese Business Summit in Auckland last week, Fonterra chief exuecutive Miles Hurrell revealed that his phone was running hot over the weekend.

Well done Kotahi!

OPINION: Fonterra's decision to join forces with other primary sector exporters and launch a supply chain collaboration, Kotahi, is paying huge dividends.

What's in it for us?

Fonterra farmers are keen to know what the co-operative's surprise divestment plan will deliver for them, says Co-operative Council chair John Stevenson.

Fonterra to offload iconic brands

Fonterra says the sale of its global consumer business and its Oceania and Sri Lankan operations could take 18 months to complete.

Featured

Editorial: Fonterra's U-turn

OPINION: Speaking at the Chinese Business Summit in Auckland last week, Fonterra chief exuecutive Miles Hurrell revealed that his phone was running hot over the weekend.

A winner's view

Kingi Smiler, the chair of Wairarapa Moana ki Pouakani (WMI), said after winning the Ahuwhenua Trophy he was both elated and relieved and added it was a tough competition being up against Whakatohera Māori Board.

Farm 4 is number one!

A dairy farm near the settlement of Mangakino has won the prestigious Ahuwhenua Trophy for the top Māori dairy farm for 2024.

National

A good start

The final Global Dairy Trade (GDT) auction for the 2023-24 season augurs well the forecast milk price for the new…

Labour eyes rural votes

Labour Party agriculture spokesperson Jo Luxton is on a mission to win back rural sector votes.

Machinery & Products

Tractor, harvester IT comes of age

Over the last halfdecade, digital technology has appeared to be the “must-have” for tractor and machinery companies, who believe that…

» Latest Print Issues Online

Milking It

Well done Kotahi!

OPINION: Fonterra's decision to join forces with other primary sector exporters and launch a supply chain collaboration, Kotahi, is paying…

» Connect with Dairy News

» eNewsletter

Subscribe to our weekly newsletter