Tirlán confirms 6c per litre cut to base milk price for January supplies
Tirlán chair John Murphy commented that dairy market prices fell significantly from their record highs in the fourth quarter of 2022.
Tirlán has confirmed a base milk price for January supplies of 45c per litre (including Vat), a decrease of 6c per litre.
In total, Tirlán will pay a total of 56.08c per litre for milk supplies at 3.6% butterfat and 3.3% protein.
This price includes an agri-input support payment of 6.5c per litre for all milk supplied in January, including volumes in fixed milk price schemes; a seasonality payment of 4c per litre; and a sustainability action payment of 0.5c per litre.
The base price and above payments will be adjusted to reflect the actual constituents of milk delivered by suppliers, Tirlán said.
The Tirlán total price for January creamery milk, based on LTO constituents of 4.2% butterfat and 3.4% protein, is 60.8c per litre.
This includes the agri-input support payment, seasonality payment, and sustainability action payment.
Tirlán chair John Murphy commented that dairy market prices fell significantly from their record highs in the fourth quarter of 2022, with strong global milk supply volumes and subdued consumer demand due to inflationary pressures.
"In recent weeks, indications suggest that markets are stabilising, albeit at low levels relative to historically high farm input costs," Mr Murphy said.
"The board are conscious of the impact on our milk suppliers and will continue to closely monitor the situation on a monthly basis."
In recent months, Tirlán milk suppliers have declared at least seven sustainability actions (from a menu of 18) undertaken on their farms in 2022.
Milk suppliers that confirmed at least seven actions will be paid a 0.5c per litre sustainability action payment on all milk supplied in 2023.
Any milk supplier that has yet to submit their return is urged to do so immediately in order to qualify for payment.
Meanwhile, a seasonality payment of 3c per litre (including Vat) will apply to all February milk supplies that meet quality criteria, excluding volumes in the liquid milk and autumn calving schemes.
Tirlán was the latest of the processors to announce a decrease in its milk price for January supplies.
Late last week, Carbery announced that it has reduced its milk price for January supplies by 4c per litre.
If this decision is replicated across the four West Cork co-ops - Bandon, Barryroe, Drinagh, and Lisavaird - this will result in an average price for January of 52.8c per litre, inclusive of Vat, and 0.5c per litre somatic cell count bonus.
Dairygold has also reduced its quoted milk price by 6c per litre to 52c per litre, based on standard constituents of 3.3% protein and 3.6% butterfat, inclusive of sustainability and quality bonuses and Vat.
Meanwhile, Lakeland Dairies was the first processor to announce a 6c cut to milk price for January supplies.
In the Republic of Ireland, Lakeland has reduced the milk price by 6c per litre to 52.85c inclusive of Vat, for milk at 3.6% fat and 3.3% protein.
In Northern Ireland, Lakeland has reduced the milk price by 5p per litre to 42.5p per litre.
Meanwhile, the Kerry Group base price for January milk is 50c per litre at 3.3% protein and 3.6% butterfat, a drop from the base price of 56c per litre for December milk supplies.
