Tirlán has confirmed its price for August milk supplies while also announcing a milk price 'floor' for September, October, November and December.

The milk price for August will be 39.08c/L including VAT, a temporary 1c/L weather support payment, and 0.5c/L Sustainability Action Payment.

According to Tirlán, the average price, based on delivered milk constituents, will be 46.5c/L, including VAT.

The four-month 'floor' price, meanwhile, will be set at 40.08c/L, including VAT and the 0.5c/L Sustainability Action Payment, barring "any unforeseen events".

Tirlán chairperson Ger O'Brien said: "As a farmer-owned Co-operative, we understand the value of certainty in helping farm families plan cash flow, feed purchases and investment decisions.

"The board is pleased to announce its commitment to a floor price for September, October, November and December milk supplies of 40.08c/L, subject to any unforeseen events," O'Brien added.

He said that, while protein markets remain strong, milk supply growth across key export regions continues to weigh on overall dairy market returns.

"Market demand and pricing remain relatively stable. Milk suppliers can be assured that our teams continue to focus on maximising returns from the marketplace and any improvements in market conditions will ultimately be returned to our farmers," the Tirlán chair said.

The new milk price floor is in addition to a recently agreed five-year payment framework for participants in the Liquid Milk and Autumn Calving Schemes, which will come into effect from October 1.

This new framework will see an increase in the January seasonality payment from 7c/L to 9c/L, while the seasonality payments for December and February will remain at 5c/L.

The seasonality payments are available to all milk suppliers provided milk quality criteria are met.

This new framework also provides a 13c/L liquid milk premium on contracted liquid milk supplies, and a 12c/L premium on contracted Autumn Calving Scheme supplies.

Milk prices

Yesterday (Thursday, September 17), Dairygold confirmed is August milk price, deciding to increase its offering by 0.5c/L to 39c/L.

This is based on standard constituents of 3.3% protein and 3.6% butterfat, and includes sustainability and quality payments, and VAT.

Dairygold said the August milk price equates to an average farm gate milk price of 46.7c/L for the month, based on the average milk solids achieved by Dairygold milk suppliers.

Commenting on the board’s decision, Dairygold chairperson Pat Clancy said: "Dairy market sentiment has continued to improve in recent weeks, supported primarily by protein and cheese returns, and a slowdown in European milk supply growth.

"The Dairygold board continues to monitor markets closely and will review milk price on a monthly basis," Clancy added.