Tirlán has decided to offer an unchanged milk price to its suppliers for the month of October.
The co-op will pay an overall price of 58.08c/L for last month’s milk, based on contents of 3.6% butterfat and 3.3% protein.
This overall price is broken down as follows:
- A base milk price of 51.08c/L including VAT;
- An Agri-Input Support Payment of 6.5c/L for all milk supplied last month, including volumes in fixed price contracts;
- A Sustainability Action Payment of 0.5c/L, including VAT, is being paid monthly on all milk supplied in 2022 to recognise specific sustainability actions being undertaken on-farm.
The base price and two additional prices will be adjusted to reflect the actual constituents of milk delivered by suppliers.
Based on European standard constituents of 4.2% butterfat and 3.4% protein, the overall price (including the Sustainability Action Payment and the Agri-Input Support Payment) is 63c/L.
Tirlán chairperson John Murphy commented: “International dairy product prices have weakened as buyers approach year-end.
“The spot market return for some products has dipped below the current farm gate price.”
“The board will continue to monitor developments on a monthly basis,” Murphy added.
Tirlán has also confirmed that seasonality payments will apply over the months of December, January and February.
A Seasonality Bonus of 4c/L, including VAT, will be paid on all non-contracted milk volumes supplied during December that meet quality criteria.
Tirlán is the second major processor to announce its price for October milk.
The board of Lakeland Dairies confirmed last week that it is continuing to hold its current milk price level.
In the Republic of Ireland, the processor has maintained the price of 58.85c/L, inclusive of VAT, for milk at 3.6% butterfat and 3.3% protein.
Lakeland said that this includes the supplementary input support payment of 1.5c/L, inclusive of VAT, for all suppliers, including those with fixed milk price contracts.
The processor also confirmed that all suppliers in the Republic of Ireland on fixed milk price contracts will receive an 8c/L supplementary payment, plus the additional 1.5c/L input support payment.
In Northern Ireland, Lakeland Dairies has maintained the price of 47.5p/L, which includes an input support payment of 1.5p/L.
All northern suppliers with fixed milk price contracts will receive a 7p/L supplementary payment, in addition to the support payment.