Tirlán has confirmed that its suppliers will receive a 4c/L seasonality payment for milk supplied in December, as well as a 1c/L sustainability bonus on all 2022 supplies.
The seasonality payment is included as part of the co-op’s December milk price, while the sustainability bonus is separate.
The seasonality payment will also be paid on milk supplies in January and February 2023 (at 4c/L and 3c/L respectively).
The 4c/L December top up – which applies to all creamery milk volumes meeting quality criteria – plus the unchanged base price and other additional payments, brings the price offering for December to 62.08c/L including VAT for milk at 3.6% butterfat and 3.3% protein.
This price is composed of the following (all figures include VAT):
- A base price for December of 51.08c/L;
- The Agri-Input Support Payment of 6.5c/L on all December supplies, including volumes in fixed price contracts;
- The Sustainability Action Payment (separate from the new sustainability bonus) of 0.5c/L, which is paid monthly on all milk to recognise sustainability actions on farm;
- The new seasonality payment of 4c/L, paid on all litres meeting quality criteria, including non-contracted volumes from Tirlán’s autumn calving and liquid milk scheme members.
All of these component prices will be adjusted to reflect the actual constituents of milk delivered by suppliers.
Based on European standard constituents of 4.2% butterfat and 3.4% protein, the price converts to 67.28c/L including VAT.
Tirlán sustainability bonus
The new sustainability bonus of 1c/L on all 2022 milk supplies is being paid to recognise investment in sustainability actions by farmers.
The bonus will be paid on a flat rate basis on all litres of milk supplied in 2022, including contracted volumes to autumn calving and liquid milk schemes, and all volumes in fixed price schemes.
In terms of the monthly 0.5c/L Sustainability Action Payment, Tirlán suppliers have, in recent months, declared at least seven sustainability actions from a menu of 18 that they have undertaken.
These farmers will continue to receive their 0.5c/L Sustainability Action Payment in 2023.