Tirlán confirmed today (Friday, December 15) an increase in the milk price it will pay dairy farmers for supplies made in November.
It will pay a total of 35.08c/L, including VAT for November creamery milk supplies at 3.6% butterfat and 3.3% protein.
This is up 2c/L from October and consists of the following:
- Base milk price of 34.58c/L (including VAT);
- Sustainability Action Payment of 0.5c/L (including VAT) to all qualifying suppliers. Suppliers are encouraged to register their sustainability actions now on the Tirlán FarmLife website to secure the 0.5c/L for 2024.
The base price and Sustainability Action Payment will be adjusted to reflect the actual constituents of milk delivered by suppliers.
According to Tirlán chair John Murphy, this is the first increase in base price since September 2022.
“The main driver of increased market returns is the reduction in milk supply in some key regions. It would be welcome to also see improvements in end user demand, which remains challenged by inflationary pressures and geopolitical issues,” Murphy said.
“At this time of year, it is important to recognise our suppliers that milk throughout the winter months to ensure consumers have access to high quality fresh dairy products.
“We have committed to a series of significantly enhanced seasonal payments that reflect our commitment to our top quality portfolio of branded dairy products,” he added.
Tirlán
In recognition of the higher cost production model of winter milk, and increased operating costs on farm, the Tirlán board has approved enhanced seasonality payments, liquid and Autumn Calving Scheme (ACS) premiums for the next contract period.
Each contracted Liquid and ACS supplier will receive a detailed letter setting out their proposed new enhanced contract details, and the option of a voluntary exit package for those wishing to switch away from the supply of milk all year round.
In recognition of the higher farm costs being incurred at present, Liquid and Autumn Calving Scheme (ACS) suppliers will receive an increased premium payment for all contracted volumes that meet quality criteria during November and December 2023.
Unconditional seasonality bonus payments apply over the winter months of December, January and February on all non contracted milk volumes that meet quality criteria.
The payment rate for December 2023 and January 2024 is 4c/L, with 3c/L available for February 2024.
The unconditional Seasonality Bonus Payment will increase to 5c/L in December 2024; 7c/L in January 2025 and 5c/L in February 2025.
Payment will be adjusted to reflect the actual constituents of the milk delivered.