The dairy milk producer reduced its forecast base milk price to NZ$8.50 per kilogram of milk solids (kgMS) from NZ$9.00 per kgMS.

The company said global milk production showed signs of a recovery in late 2022, adding further downward pressure to dairy commodity prices and thereby reducing the price Synlait achieved on its products.

This marks the second time in three months that Synlait has cut its milk price forecast. In December, the company trimmed its base milk price estimate to NZ$9.00 per kgMS to reflect weaker global demand amid cost-of-living pressures.

Synlait's update comes after dairy giant Fonterra Co-operative Group last month slashed its farmgate milk price range forecast and lowered its milk collection outlook for the 2022/23 season on account of softening demand and adverse weather conditions.

(Reporting by Echha Jain in Bengaluru; Editing by Maju Samuel)