Dairy processor, Tirlán has today (Friday., November 17) announced a fixed milk price offer of 40c/L for 2024 milk supply volumes that will open to applications in the coming days.
The following option is being offered on a voluntary basis to Tirlán milk suppliers – a fixed milk price of 40c/L including VAT and Sustainability Action Payment at 3.6% butterfat and 3.3% protein for the 12-month milk supply period of January to December 2024 inclusive.
The price will be adjusted to reflect the actual constituents of milk delivered by suppliers, according to the processor.
Fixed milk price scheme details
Unconditional seasonality payments will be paid on top of the fixed milk price (Scheme 19) price, Tirlán has stated.
The minimum application is 10,000L, with a maximum of 20% of a supplier’s milk supply volumes over the previous 12 months.
Milk suppliers will be notified once the application process opens in the coming days. Applications will be processed online with support available as required.
Tirlán explained that volumes allocated will be confirmed before a supplier is contractually committed.
To aid milk suppliers in protecting their margins, Tirlán has said it will facilitate any supplier who wishes to fix the price up to May 31, 2024 of a volume of feed and fertiliser equivalent to the volume of milk fixed (Republic of Ireland only).
This will be undertaken directly with the relevant business/branch manager.
October milk price
Earlier this week, Tirlán announced that it would hold its price for milk supplied in October and will pay farmers a total of 33.08c/L, including VAT.
The co-op said that this is based on October creamery milk supplies at 3.6% butterfat and 3.3% protein.
Tirlan’s decision to leave its price unchanged was, according to its chair, John Murphy, a reflection of current market performance.
“We welcome the improvement in the dairy commodity markets in recent weeks, and it is good to see the lift as we move towards 2024.
“Buyers remain cautious in the current environment given the geo-political issues and cost of living pressures facing consumers. The board will continue to review developments on a monthly basis,” Murphy said at the time.
Tirlán’s October milk price, unchanged from September, consists of:
- Base milk price of 32.58c/L, including VAT;
- Sustainability Action Payment of 0.5c/L, including VAT, to all qualifying suppliers.
Tirlán also said that the base price and its Sustainability Action Payment will be adjusted to reflect the “actual constituents” of milk delivered by suppliers.
Tirlán’s total price for October creamery milk, based on LTO constituents of 4.2% butterfat and 3.4% protein, is 36c/L, including VAT.