Tirlán has announced an increase in its Agri-Input Support Payment which results in an overall increase in its milk price for September supplies.
The co-op will pay its suppliers a total of 58.08c/L including VAT for September milk, at 3.6% butterfat and 3.3% protein.
This price consists of the following:
- An unchanged base price of 51.08c/L including VAT;
- The Agri-input Support Payment of 6.5c/L (up 0.5c/L from 6c/L) to be paid on all milk supplied in September, including for volumes in fixed milk price schemes;
- The Sustainability Action Payment of 0.5c/L, which is paid on all milk supplied in 2022 to recognise specific sustainability actions being undertaken on-farm.
The base price and the two additional payments will be adjusted to reflect the actual constituents of milk delivered by suppliers, Tirlán said.
Based on European standard constituents of 4.2% butterfat and 3.4% protein, the overall September price (including the agri-input and sustainability payments) converts to 62.96c/L including VAT.
Tirlán chairperson John Murphy commented: “European dairy market prices remain at a premium to global levels, but there has been some signs of easing on some products in recent weeks.
“Consumer sentiment is being closely monitored due to the inflationary environment. We remain conscious of high cost of farm inputs through the winter period which is reflected in our increased support today.
“The board will continue to monitor the situation on a monthly basis,” Murphy added.
The Tirlán chair also acknowledged the recent issue of August milk statements being sent to incorrect recipients.
“I would also like to sincerely apologise on behalf of our co-op fo the upset caused to many suppliers by the recent issue with the August milk statement mailing,” Murphy said.
“We would like to thank our suppliers for their cooperation in the swift retrieval of statements. A full review of procedures was immediately implemented. The September milk statements will issue in the coming days, both online and via mail.”
Tirlán confirmed that the Agri-Input Support Payment of 6.5c/L will continue to be paid for the remainder of 2022 and for the first quarter of 2023. This is subject to dairy markets continuing to perform at current high levels and input prices remaining elevated.
At the end of the first quarter of 2023, the board will confirm the level of Agri-Input Support Payment to be made for the second quarter of the year.
The co-op has also confirmed that the current Fixed Milk Price Support Scheme will remain open for applications from qualifying suppliers until December 1, 2022.
The scheme applies to farmers with over 35% of their milk supply in fixed price schemes.