Milk prices for May confirmed by Co-ops
Tirlán sets a floor price for June, July and August for its suppliers. File image
Co-ops have announced their May milk prices, with Dairygold and Tirlán increasing prices to suppliers and Kinisla and Carbery maintaining previously quoted prices.
Dairygold have increased its May quoted milk price by 0.5cpl to 37.5cpl based on standard constituents of 3.3% protein and 3.6% butterfat, inclusive of Sustainability and Quality payments and Vat.
The May milk price equates to an average farm gate milk price of 41.9cpl for the month, based on the average milk solids, achieved by Dairygold Milk Suppliers.
The Quoted Milk Price for May, based on EU Standard constituents of 3.4% Protein and 4.2% Butterfat, is 41.2cpl, inclusive of VAT.
Commenting on the Board’s decision, Dairygold Chairperson, Pat Clancy said: “Global dairy markets remain challenging, with elevated milk supply continuing to weigh on returns, particularly across butter and cheese. Against this backdrop, overall market fundamentals are finely balanced. Dairygold remains focused on maximising returns to Members and the Board will continue to monitor markets closely.”
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Kinisla (previously Kerry Dairy Ireland) has set its May milk price at 38cpl including Vat, quality and sustainability bonuses.
At EU Standard constituents 3.40% protein and 4.20% butterfat, this equates to 41.63cpl (VAT inclusive). Based on Kinisla’s average milk solids for May, the milk price return inclusive of Vat, quality and sustainability bonuses is 40.93 cent per litre.
A spokesperson for Kinisla said: “Global milk production continues to increase at significant levels, and as markets assess the outlook for demand, prices are stabilising and beginning to ease slightly.”
Carbery group has maintained its milk price for May. If replicated across all four West Cork Co-ops, Bandon, Barryroe, Drinagh and Lisavaird, this will result in an average milk price of 40.80cpl, inclusive of Vat, the 0.5cpl Somatic Cell Count (SCC) bonus and the FutureProof sustainability bonus.
A spokesperson for Carbery said: “Dairy markets remain challenging with ongoing pressure from global supply dynamics. Maintaining our milk price reflects Carbery's commitment to supporting our farmer shareholders during the peak production season. The Stability Fund contribution will remain at 2.0cpl for the month, supporting returns to suppliers despite ongoing market volatility.”
Tirlán Co-op has announced that this month’s milk payment will include a 0.5cpl market-based adjustment to the final March, April and May milk price.
This will result in a €6.1 million retrospective top-up payment to farmers for March, April and May milk supplies, bringing the total milk price for this period to 37.58 cpl (including VAT and 0.5cpl Sustainability Action Payment). All payments are quoted at base solids and will be adjusted for constituents.
The actual average price paid by Tirlán for May creamery milk, based on delivered constituents, will be 42.01 cpl (including VAT).
The May milk payment consists of the base milk price of 36.58 cpl (including VAT), a Sustainability Action Payment of 0.5 cpl (including VAT) to all qualifying suppliers and a market-based adjustment of 0.5cpl for March, April and May supplies.
Tirlán has also announced a set a floor price of 38.08cpl (including VAT and 0.5cpl Sustainability Action Payment) for June, July and August milk supplies, barring unforeseen events. This is an increase of 1.0 cpl on its previously announced three-month milk price of 37.08 cpl for March, April and May milk.
Tirlán Chairperson Ger O’ Brien said that the Co-op Board was pleased to be in a position to set a floor on the milk price for June, July and August supplies and hoped that it would provide confidence to farmers.
“When we announced our three-month price in April, we stated that it was ahead of the market, but we committed that any improvement in markets would be returned to milk suppliers.
Since then, there has been an increase in returns for some products, particularly proteins. However, I would caution that global milk supply remains strong and this continues to impact on product pricing, particularly for butter and cheese,” said Mr O’Brien.
