Tirlán has today (Monday, February 20) confirmed that it is cutting the base price paid to farmers for milk supplies by 6c/L.
The Kilkenny-headquartered co-operative will pay a total of 49.08c/L, including VAT, for February creamery milk supplies at 3.6% butterfat and 3.3% protein.
The price includes a seasonality payment of 3c/L, including VAT, that will be paid on all creamery milk volumes supplied in February that meet quality criteria.
Last month, the processor announced that it would pay a total of 56.08c/L for milk supplied in January. That price includes a seasonality payment of 4c/L.
Milk price
According to Tirlán, the February price of 49.08c/L consists of the following:
- Base milk price for February of 39.08c/L (including VAT), this is a decrease of 6c/L compared to January;
- An Agri-Input Support Payment of 6.5c/L for all milk supplied in February, including volumes in Fixed Milk Price schemes;
- A Sustainability Action Payment of 0.5c/L (including VAT) to all qualifying suppliers;
- A Seasonality Payment of 3c/L (including VAT) which applies to all creamery milk volumes supplied during February that meet quality criteria. This payment also applies to non-contracted volumes from autumn calving and Liquid Milk scheme members.
The processor said that the base price, Agri-Input Support Payment, Sustainability Action Payment and Seasonality Payment will be adjusted to reflect the actual constituents of milk delivered by suppliers.
Based on standard European constituents of 4.2% butterfat and 3.4% protein, the Tirlán total price for January creamery milk is 53.25c/L, including VAT. This includes the sustainability action payment, agri-input support payment and seasonality payment.
Tirlán
Commenting on the announcement, chair of Tirlán, John Murphy said:
“Our farmgate milk price unfortunately needs to move lower this month to reflect the significant correction in market returns that occurred between September and January.
“While there has been some recent signs of stabilisation in dairy commodity markets at low levels, buyers remain cautious in the current inflationary environment, especially as milk volumes across Europe increase towards seasonal peak.
“Farm input costs remain elevated and the board will continue to closely monitor the situation on a monthly basis,” he said.