Tirlán December milk price 62.08 cpl

Tirlán will pay a total of 62.08 cent per litre (cpl) (including VAT) for December creamery milk supplies at 3.6% butterfat and 3.3% protein.

The price includes a Seasonality Payment of 4 cpl (including VAT) that will be paid on all creamery milk volumes supplied in December that meet quality criteria.

The Board of Tirlán has today decided to pay an additional Sustainability Bonus of 1 cent per litre (including VAT) on all milk volumes supplied in 2022. This is in recognition of the significant commitment to sustainability shown by our suppliers.

Tirlán Chairman John Murphy said: “2022 has been a year of historic highs on global dairy markets. However, in recent months, there has been a significant reduction in market returns. The Board has chosen to support the milk price at current levels since October, despite market returns continuing to weaken.

“We recognise the significant investments in sustainability that our suppliers are undertaking on their farms. Today’s announcement of a Sustainability Bonus for all 2022 milk supplies is worth over €6,000, on average, to milk suppliers. This will be a welcome cashflow boost during a particularly high cost spring period on farms.

“The Board will continue to closely monitor the negative trends in dairy markets, impacted by various factors including food price inflation, high farm input costs, rising global milk supply and environmental constraints.”

 

December Milk Price

The December price of 62.08 cpl (including VAT) consists of the following:

• Base milk price for December unchanged at 51.08 cpl (including VAT);
• The Agri-Input Support Payment remains at 6.5 cpl for all milk supplied in December, including volumes in Fixed Milk Price schemes;
• A Sustainability Action Payment of 0.5 cpl (including VAT) is being paid monthly on all milk supplied in 2022 to recognise specific sustainability actions being undertaken on farm;
• A Seasonality Payment of 4.0 cpl (including VAT) which applies to all creamery milk volumes supplied during December that meet quality criteria. This payment also applies to non-contracted volumes from our Autumn calving and Liquid Milk scheme members.

 

The base price, Agri-Input Support Payment, Sustainability Action Payment of 0.5cpl and Seasonality Payment will be adjusted to reflect the actual constituents of milk delivered by suppliers.

The Tirlán total price for December creamery milk, based on LTO constituents of 4.2% butterfat and 3.4% protein, is 67.28 cpl (including VAT). This includes the Sustainability Action Payment, Agri-Input Support Payment and Seasonality Payment.

 

Additional Sustainability Bonus

In recent months Tirlán milk suppliers have declared at least seven sustainability actions (from a menu of 18) that they have undertaken on their farms in 2022. This will ensure that suppliers continue to receive their 0.5 cpl Sustainability Action Payment in 2023.

In recognition of this significant investment by farmers, the Board of Tirlán has today agreed to pay an additional Sustainability Bonus of 1 cpl (including VAT) on all milk supplied in 2022 (traditionally known as a ‘13th Payment’). The Bonus will be paid on a flat rate basis on all litres of milk supplied to Tirlán in 2022, including contracted volumes to Autumn Calving and Liquid Milk Schemes and all volumes in Fixed Milk Price schemes. 

 

Seasonality payments 

Seasonality payments will also apply to milk supplies in January and February of 4cpl and 3cpl respectively (including VAT) on all milk supplies that meet quality criteria (excluding volumes in the Liquid Milk and Autumn Calving schemes).

 

Flat Rate VAT

From January 1, 2023, the flat rate VAT addition for non-registered farmers is now 5% (2022: 5.5%)

 

First Published 19 January 2023