Canterbury-based dairy company Synlait has increased its forecast milk payout prices for suppliers for the 2019/2020 season.
It has lifted the expected base milk price for the season to $7.25 kgMS from $7.00 kgMS after healthy global dairy prices.
"Synlait increased its forecast milk price to $7.25 for the current season on the back of higher than expected commodity prices at the end of 2019, which we believe will hold in the medium term as supply and demand continue to be evenly matched," said Synlait CEO Leon Clement.
"We are grateful for the ongoing support of Synlait's farmer suppliers and are pleased to be able to offer an improved forecast milk price for the current season."
Synlait posted an increased profit of $82.2 million in the year ended July 2019, and achieved record revenue, exceeding $1 billion for the first time.
The 2019 profit was up 12 percent on the previous year and had been driven by ongoing growth in infant nutrition volumes and strong efficiency gains.