Canterbury milk processor Synlait has downgraded its earnings forecast.
However, the company has signalled that this forecast is dependent on commodity prices continuing to firm for the rest of the season.
“Our price of $6.50/kgMS has remained in place since May 2017, but global pricing remains unpredictable,” says John Penno, Synlait managing director.
“It is too early in the season to give pricing certainty, but we believe there may be a period of price stability over the coming months.
“Milk prices have largely been dropping since October, but over the past month the strengthening outlook for the global economy, subsequent rising general commodity prices, and the reduced milk production forecast due to difficult weather conditions, have seen dairy commodity prices strengthen,” he says.
Synlait’s next milk price update for the 2017 -18 season will be in May.