Tirlán has today (Wednesday, April 19) announced that it is decreasing its base milk price paid to farmers for milk supplied in March by 3c/L.
The processor will pay a total of 44.08c/L, including VAT, for March creamery milk supplies at 3.6% butterfat and 3.3% protein.
The March price of 44.08c/L, according to Tirlán, consists of the following:
- Base milk price for March of 36.08c/L (including VAT), this is a decrease of 3c/L compared to February;
- A weather-related payment of 1.0c/L (including VAT) for all milk supplied in March (bringing the net reduction to 2c/L);
- An Agri-Input Support Payment of 6.5c/L for all milk supplied in March, including volumes in fixed milk-price schemes;
- A Sustainability Action Payment of 0.5c/L (including VAT) to all qualifying suppliers.
The base price, Agri-Input Support Payment, Sustainability Action Payment, and the weather-related payment will be adjusted to reflect the actual constituents of milk delivered by suppliers, the processor said.
Tirlán
Based on standard European constituents of 4.2% butterfat and 3.4% protein, the Tirlán total price for March creamery milk is 47.87c/L, including VAT, the Agri-Input Support Payment, Sustainability Action Payment, and the weather-related payment.
“The month of March was challenging on farm with difficult weather conditions and elevated farm input costs.
“Market returns continue to show weakness relative to the highs of last year and this has to be reflected in our farmgate milk price.
“The key drivers of the downward pressure on dairy commodity prices have been milk production growth and relatively weak import volumes in some regions.
“The board will continue to monitor the situation on a monthly basis,” Tirlán chair, John Murphy said.