Tirlán to offer 3cpl 'Weather Payment' as farms struggle to maintain cash flow

Seán Molloy, Tirlán Chief Executive Officer Designate. Picture: Dylan Vaughan

Ireland's largest milk processor Tirlán has announced a €30m weather support package to help suppliers through the prolonged wet weather.

it includes a 3cpl "Weather Payment", which will apply to all milk supplied in March, advance payments, and an extension to the feed rebate scheme. 

Tirlán chairman John Murphy said that the co-op is acutely aware of the challenges being experienced by our farmers at present. 

“The exceptional rainfall affecting farmers in our catchment area is causing significant physical, financial and mental stress. A key role of a farm-family-owned co-op is to support members when challenges arise," he said.

"The board believes that it is appropriate for the co-op to now utilise some of our resources to support our Members.” 

Tirlán Chief Executive Designate Seán Molloy added that co-op staff are available to provide support to farmers and that a second technical webinar will be held after a very well-attended event on March 27.

“We are also very conscious of the challenges faced by tillage farmers and are exploring options for support as the situation evolves,” he said.

The key elements of the Support package from Tirlán Co-op are as follows:

• A 3 cpl Weather Payment on all March milk volumes in recognition of the exceptionally challenging weather, which saw rainfall for the month at generally twice the long-term average. This payment will also be made on March milk volumes in the Liquid Milk, Autumn Calving and Fixed Milk Price Schemes;
• An extension of the current €30/t Weather Support Payment on GAIN dairy feed until 27 April. This support to milk suppliers was first introduced on March 15 and was due to lapse on April 13;
• An increase in the proportion of milk payment made as an early interim payment from 50% to 60% for April milk paid in May to boost cashflow;
• An extension of the Fertiliser Credit Scheme to the end of May – this offer of interest-free credit on fertiliser purchases normally ends in March;
• The establishment of a Tirlán Advance Payment Scheme, which will offer cashflow support to milk suppliers. The Advance Payment Scheme is a voluntary scheme offering milk suppliers an advance on future milk payments of 5cpl (based on March milk volumes).
• The Advance Payment, which will be made to the trading accounts of participating milk suppliers, will offer approximately €3,000 of interest-free cashflow support to an average milk supplier and will be set off against actual milk payments due over the peak months of May, June and July of 2025.

IFA President Francie Gorman said it was important other co-ops and processors follow the example set by Tirlán and introduce a similar set of measures to assist farmers through what is a very difficult period.

“This is the kind of solidarity that farmers need as they grapple with the dreadful weather conditions. Apart from the milk price top-up, there are other measures to help provide feed at a reduced price, and improve cashflow for farmers,” he said.

“IFA had suggested the top-up to the March milk price and it is good to see this forthcoming from Tírlan."