Tirlán confirms April milk price with cease to agri-input support payment
Tirlán chairman John Murphy said that higher interest rates are impacting on working capital costs in the supply chain, and are dampening demand in some regions.
Tirlán has confirmed a base milk price for April supplies of 39.58c per litre.
Tirlán will pay a total of 40.08c per litre including Vat for April creamery milk supplies at 3.6% butterfat and 3.3% protein.
This price includes the base price and a sustainability action payment of 0.5c per litre to all qualifying suppliers.
The base price and the sustainability action payment will be adjusted to reflect the actual constituents of milk delivered by suppliers.
The April price is down from the price for March of 44.08c per litre.
The Tirlán total price for April creamery milk, based on LTO constituents of 4.2% butterfat and 3.4% protein, is 43.55c per litre. This includes the sustainability action payment.
Tirlán chairman John Murphy said that higher interest rates are impacting on working capital costs in the supply chain, and are dampening demand in some regions.
"Global milk supply has risen slightly but is expected to remain on par with last year’s levels," Mr Murphy said.
"The board will continue to review developments on a monthly basis."
In October last year, Tirlán made a commitment that an agri-input support payment of 6.5c per litre would be paid on all milk volumes, including all volumes in fixed milk price schemes, until the end of the first quarter of 2023.
In that announcement, it was highlighted that the payment was "subject to dairy markets continuing to perform at current high levels and input prices remaining elevated".
In light of current dairy market returns, Tirlán said the board believes that it is "appropriate to discontinue the payment at this time".
