Co-ops announce increased July milk prices
Tirlán’s board has approved a 1cpl increase to the original three-month price commitment covering milk supplied during June, July and August.
Co-ops have confirmed and increased their July milk prices, with Tirlán also confirming its autumn calving and seasonality payment, pledging to a five-year framework for milk suppliers.
Tirlán’s board has approved a 1cpl increase to the original three-month price commitment covering milk supplied during June, July and August.
As a result, the manufacturing milk price for July milk supplies is 39.08cpl, including a 1cpl Weather-Support payment and the 0.5cpl Sustainability Action Payment.
The co-op has announced the August payment run will also include the 1cpl Weather Support payment on all June milk volumes.
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The actual average price paid by Tirlán for July creamery milk, based on delivered constituents, will be 43.82 cpl (including VAT).
Tirlán chairperson Ger O'Brien said exceptionally low grass growth was having a significant impact on milk supply, with deliveries to Tirlán in August running 8% behind the same period last year.
“Our farmers are dealing with severely elevated milk production costs and will require an improvement in market returns in order to sustain milk production into the backend,” he said.
Tirlán has also confirmed its autumn calving and seasonality payment rates for its suppliers.
The co-op’s board has approved a new five-year payment framework for participants in the Liquid Milk and Autumn Calving Schemes (ACS), effective from October 1.
The package aims to recognise the additional commitment and costs associated with supplying milk during the winter months, and includes a range of enhanced supports for participating suppliers.
A key element is an increase in the unconditional January seasonality payment from 7cpl to 9cpl, while the unconditional seasonality payments for December and February will remain at 5cpl.
The package will also provide a 13cpl liquid milk premium on contracted liquid milk supplies, a 12cpl premium on contracted Autumn Calving Scheme supplies and an additional support measures designed to assist suppliers during periods of milk price volatility.
The Dairygold board has increased the July quoted milk price by 0.5cpl to a total of 38.5cpl based on standard constituents of 3.3% protein and 3.6% butterfat, inclusive of Sustainability and Quality payments and VAT.
The July milk price equates to an average farm gate milk price of 43.0cpl for the month, based on the average milk solids achieved by Dairygold milk suppliers.
The quoted milk price for July, based on EU-standard constituents of 3.4% protein and 4.2% butterfat, is 42.2cpl, inclusive of VAT.
Carbery has also announced an increase in the milk price for July. The base milk price will increase by 0.5cpl, with an additional 0.5cpl support payment for July.
If replicated across the four West Cork co-ops, Bandon, Barryroe, Drinagh and Lisavaird, this will result in an average milk price of 41.84cpl, inclusive of VAT, the 0.5cpl SCC bonus and the FutureProof sustainability bonus.
The actual average price paid for July milk, based on actual solids, is expected to be 45.75cpl, including VAT.
A spokesperson for Carbery said: “We recognise the particularly challenging operating conditions our farmer suppliers are facing as a result of the current weather.”
Kinisla has announced a July milk price of 39.1cpl, including VAT, quality and sustainability bonuses and an increase of 1.1cpl.
At EU-standard constituents of 3.4% protein and 4.2% butterfat, this equates to 42.82cpl (VAT inclusive).
Based on Kinisla’s average milk solids for July, the milk price return, inclusive of VAT, quality and sustainability bonuses, is 42.25cpl.
A spokesperson for Kinisla said: “If the emerging contraction in European milk supply persists through the second half, the resulting tightening in product availability could provide firmer support to European dairy prices later in the year, particularly if demand improves from current levels.”
The Lakeland Dairies Board has agreed to increase the price of milk by 1cpl for the month of July.
A base price of 38.5c/l at 3.6% butterfat and 3.3% protein will be paid to suppliers for July milk, which is inclusive of the 0.5cpl Sustainability Incentive Payment.
A spokesperson for the co-op said: “The market has improved marginally versus last month. Milk supply growth is easing somewhat, particularly in Europe where summer temperatures have impacted. If supply continues to slow, this will support a more positive market environment as the year progresses.”
