Tirlán has today (Monday, February 20) become the latest processor to confirm that it is cutting the base price paid to farmers for milk supplies in January.
The Kilkenny-headquartered co-operative will pay a total of 56.08c/L, including VAT for January creamery milk supplies at 3.6% butterfat and 3.3% protein.
This price includes a seasonality payment of 4c/L, including VAT, which will be paid on all creamery milk volumes supplied in January that meet quality criteria.
Milk price
According to Tirlán, the January price of 56.08c/L consists of the following:
- Base milk price for January of 45.08c/L (including VAT); this is a decrease of 6c/L compared to December;
- An Agri-Input Support Payment of 6.5c/L for all milk supplied in January, 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 4c/L (including VAT) which applies to all creamery milk volumes supplied during January that meet quality criteria. This payment also applies to non-contracted volumes from Tirlán’s 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 60.8c/L, including VAT. This includes the sustainability action payment, agri-input support payment and seasonality payment.
Dairy markets
Chair of Tirlán John Murphy said that “dairy market prices fell significantly from their record highs in the fourth quarter of 2022, with strong global milk supply volumes and subdued consumer demand due to inflationary pressures”.
“In recent weeks, indications suggest that markets are stabilising, albeit at low levels relative to historically high farm input costs.
“The board are conscious of the impact on our milk suppliers and will continue to closely monitor the situation on a monthly basis,” he said.
Tirlán said that milk suppliers who have confirmed at least seven actions undertaken on their farms in 2022 will be paid a 0.5c/L sustainability action payment on all milk supplied this year.
Any milk supplier yet to submit their return is being urged to do so immediately in order to qualify for payment.
The processor also announced that a seasonality payment of 3c/L, including VAT will apply to all February milk supplies that meet quality criteria.
This excludes volumes in the liquid milk and autumn calving schemes.