The base price for milk supplied to Tirlán for March will be 39.58c/L, including VAT, the processor said today (Thursday, March 18).
This is an increase of 1c/L on the base price for February.
Tirlán said its overall price offering will be 43.08c/L, including VAT, for March creamery milk supplies at 3.6% butterfat and 3.3% protein.
This figure includes the base price, as well as a 3c/L ‘weather payment’ and a sustainability action payment of 0.5c/L to all qualifying suppliers.
Tirlán said that the 3c/L weather payment will be made on all March milk volumes “in recognition of the exceptionally challenging weather”. This payment will also be made on March milk volumes in the Liquid Milk, Autumn Calving and Fixed Milk Price Schemes.
The announcement of the weather payment comes as the Tirlán seasonality payment – which is available for December, January and February – ends for this year.
The processor said that the base price, weather payment and sustainability action payment will be adjusted to reflect the actual constituents of milk delivered by suppliers.
Commenting on the milk price for March, Tirlán chairperson John Murphy said: “While dairy markets are generally stable, the board is acutely aware of the severe challenges facing our milk suppliers this season as wet ground conditions make grazing very difficult.
“The March rainfall total at weather stations in the southeast was around twice the long term average, with April rainfall to date already exceeding the normal monthly average.
“This is having a significant impact on our milk supply and creating very challenging conditions for farmers, with yields per cow subdued as herds approach peak supply,” Murphy added.
The Tirlán chairperson said that the co-op has put in place measures to respond to the conditions on farm.
“We have provided support to our dairy farmers, including a feed rebate of €30/t; interest-free credit on fertilizer purchases; and our 3c/L weather payment for March milk. In addition, our milk suppliers can avail of an optional 5c/L Milk Advance Payment Scheme to provide a boost to their cashflow,” Murphy said.