New Zealand's Synlait Milk on Tuesday lifted its milk price forecast for the 2021 season, citing a positive outlook on the dairy industry as demand continues to recover from the coronavirus shock.
The dairy firm now forecasts base milk price for the 2020-2021 season to be NZ$7.20 per kilogram of milk solids (kgMS), up from a previous estimate of NZ$6.40 kgMS. The figure now stands near its pre-COVID-19 level of NZ$7.25 kgMS.
As of last week, global dairy prices have risen about 21% compared with prices in mid-June. [NZDAIR=ECI]
"Despite the wider global uncertainty, dairy commodity prices have remained robust," the Canterbury, New Zealand-based company said in a statement.
It expects dairy commodity prices to remain around current levels for the remainder of the milk season, Synlait added.
In December, dairy giant Fonterra lifted the lower end of its 2020-2021 forecast range for farmgate milk price on demand recovery in its top market China.
(Reporting by Sameer Manekar in Bengaluru; additional reporting by Anushka Trivedi)
