Synlait follows Fonterra with milk price increase in New Zealand
Synlait Milk, which has Chinese Bright Dairy as a major shareholder, has increased its milk price paid to suppliers to $6/kg milk solids (30c/l) to put it level with the latest Fonterra forecast.
Synlait processes more than 500m litres of milk per year from about 200 suppliers in the Canterbury Region of New Zealand’s South Island.
The company has the largest and most sophisticated infant formula facility in the Southern Hemisphere.
Synlait chair Graham Milne said: “Tightened global milk supply and ongoing demand for dairy products has led to a 50% rebound in prices since July, which is starting to filter through to farmers.”
Chief executive John Penno added: “We remain cautious about the medium to long-term outlook and encourage our milk suppliers to take this into account as they make their plans.”