Synlait is on a par with sector giant Fonterra in its new forecast of $9.50 a kilogram for the dairy payout.

The Dunsandel-based milk company has raised its base milk price forecast for the 2022-23 season by another 50 cents/kg.

This puts it at the same level in payout expectations with Fonterra's range of between $8.75/kg to $10.25/kg released last month for a midpoint of $9.50/kg.

The co-op is, however, expecting to pay a dividend of 20c/kg on top of the forecasted farmgate milk price.

Synlait chief executive Grant Watson said the company believed $9.50/kg was a balanced forecast, based on the current dairy commodity prices.

"The forecasted lift in milk price reflects an improved outlook for 2022-23 dairy commodity prices, following the recent recovery in pricing, and the current strength of the United States dollar."

Synlait said forecasts were based on the best information available at the time and it would continue to monitor movements and keep its farmer suppliers posted of changes.

- Tim Cronshaw, ODT