Tirlán has confirmed today (Friday, September 15) that it will reduce the price it will pay for milk supplied in August by 2.5c/L on the July price.
The processor will pay a total of 33.08c/L, including VAT, for August creamery milk supplies at 3.6% butterfat and 3.3% protein.
The August milk price, according to Tirlán, 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 said.
Tirlán
The Tirlán total price for August creamery milk, based on LTO constituents of 4.2% butterfat and 3.4% protein, is 36c/L (including VAT).
Tirlán chairperson John Murphy said that inflation, higher interest rates and ongoing destocking is affecting consumer behaviour.
“Strong domestic milk production in China and weaker economic data from that region has also negatively impacted market sentiment,” Murphy said.
“The margin pressures facing milk suppliers in most parts of the world are likely to curb global milk supply, although the timing remains uncertain.
“Having supported milk price strongly through the peak milk supply months, we will continue to focus on providing as much of a buffer as possible against very weak markets,” he added.
Tirlán stated it will continue to review developments on a monthly basis.
Other milk prices
Kerry Group also confirmed its milk price for August supplies today, at a base price of 32c/L, including VAT.
The base price for August milk of 32c/L reflects a 2c/L reduction on the base price paid by Kerry Group for supplies in July.
The processor also announced that there will be a further milk contract payment of 3c/L, including VAT, on all qualifying milk volumes.
Suppliers who receive the additional payment will see a price offering of 35c/L, including VAT, at 3.3% protein and 3.6% butterfat.