A2 Milk supplier Synlait Milk entity has reduced its forecast base milk price for the 2023-2024 season to $NZ7/kg of milk solids (MS) from $NZ8/kgMS, with "dairy commodity prices declining against previous expectations".
Whole milk powder and skim milk powder prices have fallen 12 per cent and 11 per cent since Synlait's last update in May 2023 to the lowest levels in three years, it told investors on Friday.
"Subdued global economic activity continues to weigh down prices, and the slowdown of the Chinese economy and an increase in their domestic milk production also means China’s demand for dairy imports has weakened to multi-season lows."
The group, which is also partially owned by A2 Milk andwon Chinese regulatory approval for tailor-made infant formula manufacturing in June, will report full year results on September 25.
An extract in today’s Australian
(20min delay)