Tirlán has confirmed it will pay a total of 38.08 c/L,including VAT, for June creamery milk supplies.
The June price – based on 3.6% butterfat and 3.3% protein – is down 2c/L from its May milk price of 40.08c/L (including VAT).
The co-op has blamed the uncertainty in global dairy markets for the cut in prices to farmers.
Tirlán’s chair, John Murphy said: “Dairy market prices have weakened significantly in recent weeks and unfortunately this must be reflected in a reduced milk price.
“The hoped for improvement in market sentiment does not appear to have materialised.
“For this peak supply month, the board has decided to support our farmers’ milk price by 3c/L.”
The chair of the co-op also stressed that its board will continue to review market developments “on a monthly basis.”
According to Tirlán the June milk price of 38.08c/L (including VAT) is made up of:
• Base milk price of 34.58c/L (including VAT);
• Support Payment of 3c/L (including VAT);
• Sustainability Action Payment of 0.5c/L (including VAT) to all qualifying suppliers.
The co-op added that the base price, support payment and sustainability action payment will be “adjusted” to reflect the actual constituents of milk delivered by suppliers.
The Tirlán total price for June creamery milk based on constituents of 4.2% butterfat and 3.4% protein – is 41.4c/L (including VAT).
Milk price for June
Tirlán is the latest processor this month to deliver downbeat sentiments on current market conditions which will further undermine farmers’ confidence on where prices may be going.
Carbery yesterday (Wednesday, July 19) said it has reduced its base milk price for June by 1c/L.
It confirmed that it would “support the milk price from its stability fund” and is allocating a 3c/L support for June supplies.
Carbery also detailed that if this decision is replicated across the four west Cork co-ops of Bandon, Barryroe, Drinagh and Lisavaird, this will result in an average price of 40.2c/L, including VAT and 0.5c/L somatic cell count bonus.
“Dairy markets performance and in particular the slow demand recovery to date continue to be of concern,” a spokesperson for Carbery warned.
Meanwhile, Dairygold cut its price by 2c/L to 38c/L, based on standard constituents of 3.3% protein and 3.6% butterfat, inclusive of sustainability and quality bonuses and VAT.
Earlier this week, Kerry Group confirmed that its price for June supplies would remain unchanged from the previous month at 37c/L.
Lakeland Dairies will pay a price of 37.35c/L for milk at 3.6% butterfat and 3.3% protein in the Republic of Ireland. This price is unchanged from the May price.