Tirlán has today (Friday, March 15) confirmed an increase in the price it will pay for February supplies.
The Kilkenny headquartered processor will pay a total of 42.08c/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”.
According to Tirlán the February milk price consists of the following:
- Base milk price of 38.58c/L, including VAT, an increase of 2c/L;
- A seasonality payment of 3.0c/L, including VAT. – this payment also applies to non-contracted volumes from its autumn calving and liquid milk scheme members;
- sustainability action payment of 0.5c/L, including VAT, to all qualifying suppliers.
The processor has also detailed that the base price, seasonality payment and sustainability action payment “will be adjusted” to reflect the actual constituents of milk delivered by suppliers.
The Tirlán total price for February creamery milk, based on LTO constituents of 4.2% butterfat and 3.4% protein, is 45.71c/L, including VAT.
Tirlán farmers
According to the chair of Tirlán, John Murphy, although dairy markets are generally stable its board is “acutely aware of the severe challenges” facing its milk suppliers because the ongoing wet weather makes grazing conditions very difficult.
“The February rainfall total at weather stations in the south east was 50%-80% higher than the long term average.
“This is having a significant impact on milk supply and creating very challenging conditions for farmers, with yields per cow 10% lower than the same period last year.
“In order to assist milk suppliers in lifting milk yields toward peak, we have decided to increase milk price by 2c/L and are also announcing a €30/t rebate on our GAIN dairy feed range, which will apply from today until the end of March,” Murphy added.