Tirlán has today (Thursday, October 19), become the latest processor to announce that it will hold its price for milk supplied in September.
The processor will pay a total of 33.08c/L, including VAT, for September creamery milk supplies at 3.6% butterfat and 3.3% protein.
Tirlán’s price is unchanged from August and consists of the following:
- Base milk price of 32.58c/L, including VAT;
- Sustainability Action Payment of 0.5c/L, including VAT, to all qualifying suppliers.
The base price and Sustainability Action Payment will be adjusted to reflect the actual constituents of milk delivered by suppliers.
The processor’s total price for September creamery milk, based on LTO constituents of 4.2% butterfat and 3.4% protein, is 36.00c/L, including VAT.
There has been a “welcome improvement” in market sentiment in recent weeks, but customers remain cautious in their buying activity, Tirlán chair, John Murphy said.
“There are signs that consumer inflation is easing, however, recent developments in the Middle East have added further uncertainty to the economic outlook.
“Global milk production is reasonably flat, but in Ireland high farm production costs and in particular adverse weather have led to an earlier than normal fall-off in milk supplies.
“The board will continue to review developments on a monthly basis,” Murphy said.
Milk price
Meanwhile, Lakeland Dairies, Kerry Group, Dairygold, and Carbery have all announced the decision to hold their price for September supplies.
Lakeland will pay a base price of 34c/L at constituents of 3.6% butterfat and 3.3% protein for September milk in the Republic of Ireland.
Kerry Group announced a base milk price of 32c/L, including a further 3c/L contract payment, inclusive of VAT for qualifying September supplies, representing a combined price of 35c/L.
Dairygold will offer a quoted milk price of 33.5c/L, inclusive of VAT and sustainability and quality bonuses, based on standard constituents of 3.3% protein and 3.6% butterfat.
Carbery said it will continue to support the milk price from its Stability Fund and is allocating 3c/L support for September milk.
If this decision is replicated across all four west Cork co-ops, this will result in an average price for September of 35.98c/L, including VAT and 0.5c/L somatic cell count (SCC) bonus.