Milk. File pic.
Tirlán will pay a total of 35.08 cent per litre (cpl) (including VAT) for November creamery milk supplies at 3.6% butterfat and 3.3% protein.
The November milk price of 35.08 cpl (including VAT) is up 2 cpl from October and consists of the following:
The base price and Sustainability Action Payment will be adjusted to reflect the actual constituents of milk delivered by suppliers.
The Tirlán total price for November creamery milk, based on LTO constituents of 4.2% butterfat and 3.4% protein, is 38.16 cpl (including VAT).
Tirlán Chairperson John Murphy said: “After a period of milk price reductions for our milk suppliers, it is welcome to see the first increase in base price since September 2022. The main driver of increased market returns is the reduction in milk supply in some key regions. It would be welcome to also see improvements in end user demand, which remains challenged by inflationary pressures and geopolitical issues.
“At this time of year, it is important to recognise our suppliers that milk throughout the winter months to ensure consumers have access to high quality fresh dairy products. We have committed to a series of significantly enhanced seasonal payments that reflect our commitment to our top quality portfolio of branded dairy products.”
Increased Seasonality payments
In recognition of the higher cost production model of winter milk and increased operating costs on farm, the Board of Tirlán has approved significantly enhanced seasonality payments, liquid and Autumn Calving Scheme (ACS) premiums for the next contract period.
Each contracted Liquid and ACS supplier will receive a detailed letter setting out their proposed new enhanced contract details and the option of a voluntary exit package for those wishing to switch away from the supply of milk all year round.
In recognition of the higher farm costs being incurred at present, Liquid and Autumn Calving Scheme (ACS) suppliers will receive an increased premium payment for all contracted volumes that meet quality criteria during November and December 2023.
Unconditional Seasonality Bonus Payment rates
Unconditional seasonality bonus payments apply over the winter months of December, January and February on all non-contracted milk volumes that meet quality criteria. The payment rate for December 2023 and January 2024 is 4 cpl, with 3 cpl available for February 2024.
The unconditional Seasonality Bonus Payment will increase to 5 cpl in December 2024; 7 cpl in January 2025 and 5 cpl in February 2025. Payment will be adjusted to reflect the actual constituents of the milk delivered.
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