Synlait Milk has announced a drop in its forecast base milk price.
The price for the 2019/2020 season was lowered from $7.25 per kilogram of milk solids (kgMS) to $7.05 kgMS.
The dairy company on Thursday said the revised price came amid the uncertainty caused by COVID-19.
"The decision to reduce our forecast base milk price for the 2019/2020 season is because, in line with other commodities, dairy prices have eased significantly this year and as a result are lower than we were anticipating when the forecast was set in January," said chief executive Leon Clement.
"COVID-19 has created significant global uncertainty. We don't yet have a clear view of COVID-19's economic impact, but we do know it will impact demand, resulting in our decision to release a conservative opening forecast for the 2020/2021 season."
The company's opening forecast for the 2020/2021 season is $6 kgMS.
The final milk price for the 2019/2020 season will be confirmed in September when it releases its full-year results.