Tirlán September milk price increases to 58.08 cpl

Tirlán will pay its milk suppliers a total of 58.08 cent per litre (cpl) (including VAT) for September milk supplies at 3.6% butterfat and 3.3% protein. This is an increase of 0.5 cpl on the August milk price.

The price consists of the following:

• Base milk price for September unchanged at 51.08 cpl (including VAT);
• An increase in the Agri-Input Support Payment of 0.5 cpl to 6.5 cpl on all milk supplied in September, 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.

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

The Tirlán total price for September creamery milk, based on LTO constituents of 4.2% butterfat and 3.4% protein, is 62.96 cpl (including VAT). This includes the Sustainability Action Payment and Agri-Input Support Payment.

Tirlán Chairman John Murphy said: “European dairy market prices remain at a premium to global levels, but there has been some signs of easing on some products in recent weeks. Consumer sentiment is being closely monitored due to the inflationary environment. We remain conscious of the high cost of farm inputs through the winter period which is reflected in our increased support today. The Board will continue to monitor the situation on a monthly basis.

“I would also like to sincerely apologise on behalf of our Co-op for the upset caused to many suppliers by the recent issue with the August milk statement mailing. We would like to thank our suppliers for their cooperation in the swift retrieval of statements. A full review of procedures was immediately implemented. The September Milk Statement will issue in the coming days, both online and via mail.”

Fixed Milk Price

The Board of Tirlán is acutely aware of the impact of high farm input costs on our suppliers with large volumes of milk contracted under Fixed Milk Price schemes.

The Board has confirmed an Agri Input Support Payment of 6.5 cpl will continue to be paid for the remainder of 2022 and for the first quarter of 2023. This is subject to dairy markets continuing to perform at current high levels and input prices remaining elevated.

At the end of the first quarter of 2023, the Board will confirm the level of Agri Input Support Payment to be made for the second quarter of 2023.

The support is paid on all milk, including volumes in Fixed Milk Price schemes.

As a result of these actions, the total level of support committed to suppliers in Fixed Milk Price schemes will amount to approx. €22 million in 2022.

In addition, Tirlán has confirmed the current Fixed Milk Price support scheme, which was announced in March, will remain open for applications from qualifying suppliers until December 1, 2022. The scheme applies to farmers with over 35% of their milk supply in Fixed Milk Price schemes.

It offers suppliers the option of increasing the price received on the qualifying volumes in 2022 to 40 cpl (including VAT) plus constituents. A price of 38 cpl applies for 2023 and 2024 for the committed volumes. In addition, participating suppliers will continue to receive the Agri Input Support Payment as outlined.

First Published: 19 October 2022