Tirlán has today (Thursday, May 18) become the latest processor to announce its price for milk supplied in April.
The processor will pay a total of 40.08c/L, including VAT, for April creamery milk supplies at 3.6% butterfat and 3.3% protein.
The April milk price of 40.08c/L, according to Tirlán, consists of the following:
- Base milk price of 39.58c/L (including VAT);
- A Sustainability Action Payment of 0.5c/L (including VAT) to all qualifying suppliers.
The base price and the Sustainability Action Payment will be adjusted to reflect the actual constituents of milk delivered by suppliers, the processor said.
Tirlán
Based on standard European constituents of 4.2% butterfat and 3.4% protein, the Tirlán total price for April creamery milk is 43.55/L, including VAT and the Sustainability Action Payment.
The Tirlán milk price for March supplies was 44.08c/L.
The Agri Input Support Payment of 6.5c/L paid on all milk volumes, including in fixed milk-price schemes, which the processor committed to in October 2022 will be discontinued.
The Tirlán board committed to the payment until the end of the first quarter of 2023 and highlighted that the payment was “subject to dairy markets continuing to perform at current high levels and input prices remaining elevated”.
“In light of current dairy market returns, the board believes that it is appropriate to discontinue the payment at this time,” the processor said.
“Higher interest rates are impacting on working capital costs in the supply chain and are dampening demand in some regions. Global milk supply has risen slightly but is expected to remain on a par with last year’s levels.
“There have been some very tentative signs of markets bottoming out, albeit at low price levels. The board will continue to review developments on a monthly basis,” Tirlán chair John Murphy said.