Synlait forecast milk price update

Synlait Milk Limited · 1028 Heslerton Road, RD13 Rakaia, Canterbury, New Zealand · +643 373 3000 · www.synlait.com






NZX: SML
ASX: SM1


31 May 2023

Synlait forecast milk price update

Synlait Milk Limited (Synlait) has provided forecast milk price updates for the 2022/2023 and
2023/2024 seasons.

Forecast base milk price for the 2022/2023 season

Synlait has reduced its forecast base milk price for the 2022/2023 season to $8.20/kgMS from
$8.30/kgMS.

The reduction was driven by weaker than expected commodity prices nearing the end of the season,
along with the continued high cost of lactose imported into New Zealand. Subdued global economic
activity also continues to weigh down consumer demand, while global milk production recovered.
Both factors resulted in softer commodity prices than previously forecast.

Opening 2023/2024 season forecast

Synlait’s opening forecast for the 2023/2024 season is $8.00/kgMS.

Reaching the 2023/2024 forecast milk price requires an improvement in commodity prices from
current levels throughout the season, which will require increased global demand. After peaking in
March 2022, dairy commodity prices have trended significantly downward with robust improvements
in global production currently outweighing the first signs of increased demand, before appearing to
find a floor around current levels.

Synlait CEO Grant Watson commented: “Our farmer suppliers have received, on average, $0.28 in
premiums above the base milk price for the last two seasons. Synlait is forecasting to pay similar
premiums this season and into 2024.”

“We maintain a market-leading position in this space, which creates increased options for our farmers
supplying Synlait’s world-class facilities in Dunsandel and Pokeno, enabling us to work with our
farmers to add more value to the milk we receive. We are committed to delivering a competitive milk
price.”

Forecasts are based on the best information available to Synlait at the time. Synlait will continue to
monitor movements and keep farmer suppliers updated as required. Synlait’s final milk price for the
2022 / 2023 season will be confirmed when the company’s full year result is released in September.
The 2023 / 2024 season forecast will be updated at the same time.

For more information contact:
Hannah Lynch
Head of Strategy & Corporate Affairs
P: +64 21 252 8990
E: hannah.lynch@synlait.com