Tirlán Fixed Milk Price Schemes update
Tirlán has confirmed that suppliers taking part in Fixed Milk Price Schemes will be able to cap their volumes at 35% in 2023 and 2024.
The agreed changes apply to volumes under Fixed Milk Price Scheme (17) and the Fixed Milk Price Support Scheme.
It means a supplier will be able to cap their volume of milk under both schemes at a total combined maximum of 35% of their 2021 annual milk volume. Volumes contracted under Scheme 18 are excluded from the adjustment.
Volumes above the combined maximum threshold of 35% will be cancelled, with volumes in the Support Scheme cancelled first, followed by those in Scheme 17. Those volumes will be paid at the Tirlán monthly milk price.
The Board has taken the decision to adjust the schemes to provide further support to our milk suppliers.
Suppliers whose volumes are above the 35% combined threshold will be notified and offered the option to opt in and accept the adjustment by Wednesday 15 March, 2023. The adjustment will be backdated to January 2023 and reflected in the March milk payment paid in April. Suppliers still have the option to partake in the Fixed Milk Price Support Scheme up until 15 March, 2023.
This adjustment will result in a reduction in contracted volumes in Fixed Milk Price Schemes for suppliers with larger volumes contracted. The number of suppliers and volume of milk contracted under Fixed Milk Price Schemes has fallen significantly in 2023.
In 2022, Tirlán invested €25 million to support suppliers contracted to Fixed Milk Price Schemes.
Tirlán has already introduced a number of voluntary measures to address the challenges faced by farmers with over 35% of their milk supply fixed in schemes. These included:
- Input Cost Support Scheme – This was designed to aid cashflow and provided suppliers with a prepayment of 5cpl on all volumes above the 35% threshold during 2022. It is to be repaid in 2025 and 2026.
- Agri-Input Support Payment – This was paid as part of the overall milk price since April 2022 and applies to all volumes under Fixed Milk Price Schemes. The payment is set at 6.5cpl until March 2023.
- Fixed Milk Price Support Scheme – This offered an uplift in price of Fixed Milk Price Scheme volumes from 31/32cpl to 40cpl in 2022 and 38cpl in 2023 for suppliers with milk volumes above 35% contracted under Fixed Milk Price Schemes. This was conditional on supply of Fixed Milk Price Scheme volumes in 2023 and 2024.
First Published 22 February 2023.