[28 January/The Country]

Synlait Milk has cut its forecast payout to farmers for the current season, following Fonterra’s lead, as weaker global demand and strong domestic production weighs on market prices. Synlait now expects to pay $6.25 per kilogram of milk solids for the 2019 season, down from its previous forecast of $6.75/kgMS. The company noted that achieving the forecast will depend on commodity prices recovering for the rest of the season, something they consider realistic. The GDT price index rose 4.2 per cent, at the last Global Dairy Trade auction on Jan. 16, its fourth straight increase. Chief Executive, Leon Clement, noted h that commodity prices had been declining for some time 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 although there were signs of this trend reversing.