SML confirms expected reduction 18/19 forecast milk price
Synlait Milk Ltd · 1028 Heslerton Road, RD13 Rakaia, Canterbury, New Zealand · +643 373 3000 · www.synlait.com
SYNLAIT MILK LIMITED ANNOUNCEMENT NZX: SML
ASX: SM1
28 JANUARY 2019
SYNLAIT CONFIRMS EXPECTED
REDUCTION IN 2018 / 2019
FORECAST MILK PRICE
Synlait (NXZ: SML; ASX: SM1) has today confirmed it will revise down its milk price forecast for the 2018
/ 2019 season to $6.25 kgMS.
This change has been expected for some time due to decreasing dairy commodity prices and was
indicated as a possibility at the Annual Shareholder Meeting in November.
Synlait’s previous forecast price of $6.75 kgMS was announced in September 2018.
“Until recently commodity prices have been declining for some time,” says Leon Clement, Synlait’s
CEO.
“This is in part due to global demand reacting to very strong production from New Zealand carrying
into summer, alongside expectations of better production growth out of the Northern Hemisphere.”
The company has signalled that the forecast price of $6.25 kgMS is dependent on commodity prices
continuing to recover for the rest of the season but this is considered realistic in light of supportive
global demand fundamentals.
“Our milk suppliers will not be surprised by this change as we communicate openly with them about
the fluctuations in global pricing on a regular basis,” says Mr Clement.
“We will continue to monitor the situation as we approach the end of the season in June.”
Synlait’s next milk price update for the 2018 / 2019 season will be in May.
ENDS
For more information about Synlait visit www.synlait.com
or contact:
Jessica Thorn
Senior Communications Advisor, Synlait Milk
P: +64 3 373 3353
E: Jessica.thorn@synlait.com
Data sourced from publicly available filings. Our datasets may not be complete. Automated analysis can produce errors. If you believe any data on this page is incorrect, please contact us at hello@nzxplorer.co.nz. For informational purposes only. Not investment advice.
Other issuers discussed similar conditions around this time
Matched by meaning across NZX announcement text, not keywords — based on our semantic index of announcement bodies.
- FSF — Fonterra Shareholders' Fund: Fonterra increases forecast Milk Price & reduces earnings2019-02-27
“28 FEBRUARY 2019 FONTERRA INCREASES 2018/19 FORECAST FARMGATE MILK PRICE AND REDUCES EARNINGS GUIDANCE • 2018/19 forecast Farmgate Milk Price range increased to $6.30-$6.60 per kgMS • DIRA Milk Price and Advance Rate based on $6.45 per kgMS • FY19 forecast earnings per…”
- FSF — Fonterra Shareholders' Fund: Fonterra revises forecast Farmgate Milk Price and Q1 update2018-12-06
“6 December 2018 FONTERRA REVISES FORECAST FARMGATE MILK PRICE AND PROVIDES Q1 UPDATE • Forecast Farmgate Milk Price range: $6.00 - $6.30 per kgMS • Forecast earnings per share range: 25-35 cents • Forecast New Zealand milk collections: 1,550 million kgMS, up 3% • Sales volum…”
- FCG — Fonterra Co-operative Group Limited: Fonterra increases forecast Milk Price & reduces earnings2019-02-27
“28 FEBRUARY 2019 FONTERRA INCREASES 2018/19 FORECAST FARMGATE MILK PRICE AND REDUCES EARNINGS GUIDANCE • 2018/19 forecast Farmgate Milk Price range increased to $6.30-$6.60 per kgMS • DIRA Milk Price and Advance Rate based on $6.45 per kgMS • FY19 forecast earnings per…”