A meeting of Tirlán milk suppliers who have been affected by losses due to fixed milk price contracts will take place tonight (Thursday, October 13) at 7:30p.m.
The meeting, which will be chaired by the president of the Irish Farmers’ Association (IFA) Tim Cullinan, will be held in the Woodford Dolmen Hotel in Co. Carlow. It is open to all Tirlán suppliers, regardless of whether or not they have signed up to the co-op’s Fixed Milk Price Support Scheme.
Sources said the discussion will focus on concerns among suppliers who committed volumes of their milk to fixed price contracts at rates which are now significantly lower than the current market price.
They added that outside of a fixed milk price support scheme offered by Tirlán, then known as Glanbia Co-op, the engagement and support from the processor has been very poor.
The support scheme offered is available to suppliers who had committed more than 35% of their milk to a fixed price of 38c/l. The scheme would increase this to a base price of 40c/l for relevant volumes and pay a sustainability bonus of 0.5c/l in 2022.
However, to qualify for these prices, suppliers are required to commit the same fixed milk price volumes in 2023 and 2024, at a base price of 38c/l plus constituents and bonuses.
Agriland understands that the affected suppliers are not necessarily looking to abolish the current contracts, but rather want to open up negotiations on the milk that has already been supplied.
Sources outlined that some Tirlán suppliers had committed up to 90% of their milk, and their losses are estimated to be in the hundreds of thousands of euro, as they received a below market rate while input costs soared.
It is hoped that the meeting will help the IFA, to hear what the key challenges facing suppliers are and establish what the next move could be for the affected suppliers.