Tirlán has today (Friday, February 16), announced an increase in its price paid for milk supplied by members in January.
The processor will pay a total of 41.08c/L, including VAT, for January creamery milk supplies at 3.6% butterfat and 3.3% protein.
The price includes a Seasonality Payment of 4c/L, including VAT, which will be paid on all creamery milk volumes supplied in January that meet quality criteria.
The January milk price consists of the following:
- Base milk price of 36.58c/L, including VAT, an increase of 1c/L;
- A Seasonality Payment of 4.0c/L, including VAT, which applies to all creamery milk volumes supplied during January that meet quality criteria.
- This payment also applies to non-contracted volumes from its autumn calving and liquid milk scheme members;
- Sustainability Action Payment of 0.5c/L, including VAT, to all qualifying suppliers.
The base price, Seasonality Payment and Sustainability Action Payment will be adjusted to reflect the actual constituents of milk delivered by suppliers.
The Tirlán total price for January creamery milk, based on LTO constituents of 4.2% butterfat and 3.4% protein, is 44.63c/L, including VAT.
Tirlán
The processor confirmed that the unconditional Seasonality Bonus Payment rate for January is is 4c/L, with 3c/L available for February 2024.
Unconditional seasonality bonus payments apply over the winter months of December, January and February on all non-contracted milk volumes that meet quality criteria.
The unconditional Seasonality Bonus Payment will increase to 5c/L in December 2024; 7c/L in January 2025; and 5c/L in February 2025. Payment will be adjusted to reflect the actual constituents of the milk delivered.
Tirlán chair John Murphy said the Board is “pleased to be in a position to increase [the] base milk price for the third consecutive month to reflect recent improvements on global markets”.
“Milk supply growth globally was very low in 2023 and is forecast to remain sluggish, which should support dairy markets.
“However, geopolitical concerns and economic weakness in some markets continue to impact on demand and will need to be monitored closely,” Murphy said.
The processor’s January milk price includes a 4c/L Seasonality Payment, which, the chair said, is a recognition of the higher costs incurred in milk production at this time of the year.
“It is also important to acknowledge and thank those suppliers who ensured quality milk was available to consumers over the winter period,” Murphy added.