Tirlán sets summer milk price and confirms €6.1m top-up
Tirlán today (Thursday, June 18) confirmed it has set a "floor price" of 38.08c/L, including VAT, for June, July and August milk supplies.
According to the co-op this includes a 0.5c/L sustainability action payment and will be in place "barring unforeseen events".
The three month floor price represents an increase of 1.0c/L on its previously announced three-month milk price of 37.08c/L for March, April and May milk price.
According to Tirlán this month's milk payment will also include a 0.5c/L "market-based adjustment" to the final March, April and May milk.
The co-op outlined that this will mean a €6.1 million retrospective "top-up payment" for farmers for March, April and May milk supplies.
This will bring the total milk price for this period to 37.58c/L -including VAT and the 0.5c/L sustainability action payment.
The co-op said that these payments "are quoted at base solids and will be adjusted for constituents".
The actual average price paid by Tirlán for May creamery milk, based on delivered constituents, will be 42.01c/L including VAT.
Tirlán
According to the chair of Tirlán, Ger O’ Brien, the co-op board was "pleased to be in a position" to set a floor on the milk price for June, July and August supplies.
The board hopes this will "provide confidence to farmers".
O’ Brien added: “When we announced our three-month price in April, we stated that it was ahead of the market but we committed that any improvement in markets would be returned to milk suppliers.
"Since then, there has been an increase in returns for some products, particularly proteins.
"However, I would caution that global milk supply remains strong and this continues to impact on product pricing, particularly for butter and cheese.”
According to Tirlán the May milk payment consists of the following:
- Base milk price of 36.58c/L (including VAT);
- Sustainability action payment of 0.5c/L (including VAT) to all qualifying suppliers;
- A market-based adjustment of 0.5c/L for March, April and May supplies.
According to the co-op the base price, sustainability action payment and market-based adjustment payments will reflect the actual constituents of milk delivered by suppliers.
