FXStreet (Bali) – As reported by BusinessDesk, Synlait Milk, the NZX-listed dairy company, cut its forecast milk payout for this season as prices remain low. The news is a negative input for the Kiwi.
As Business Desk notes: “The Rakaia-based company lowered its forecast milk price for farmers for the 2015/16 season to $4.20 per kilogram of milk solids, from a previous forecast of $5/kgMS, it said in a statement.”
Synlait Chairman Graeme Milne said” “Our previous forecast of $5/kgMS expected prices to recover somewhat by this stage in the season, however this hasn’t happened and our revised forecast reflects this.”
“There is still a lot of uncertainty. While our business is focused on value-added products, global commodity pricing is the main driver behind the milk price that our suppliers receive. European milk production is high following the removal of quotas last year. Low oil prices mean cheap feed for farmers in Europe, USA and China while demand for imported dairy commodities by China, the world’s largest importer, has declined as their local milk production has increased.”
(Market News Provided by FXstreet)