Sustainability Bonus included in Tirlán December milk price

Tirlán will pay a total of 62.08 cent per litre (cpl) (including VAT) for December creamery milk supplies at 3.6% butterfat and 3.3% protein.

The price includes a Seasonality Payment of 4 cpl (including VAT) that will be paid on all creamery milk volumes supplied in December that meet quality criteria.

The Board of Tirlán has decided to pay an additional Sustainability Bonus of 1 cent per litre (including VAT) on all milk volumes supplied in 2022. This is in recognition of the significant commitment to sustainability shown by suppliers.

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“2022 has been a year of historic highs on global dairy markets. However, in recent months, there has been a significant reduction in market returns. The Board has chosen to support the milk price at current levels since October, despite market returns continuing to weaken,” Tirlán Chairman John Murphy said.

“We recognise the significant investments in sustainability that our suppliers are undertaking on their farms. The announcement of a Sustainability Bonus for all 2022 milk supplies is worth over €6,000, on average, to milk suppliers.

“This will be a welcome cashflow boost during a particularly high cost spring period on farms.
“The Board will continue to closely monitor the negative trends in dairy markets, impacted by various factors including food price inflation, high farm input costs, rising global milk supply and environmental constraints.”

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December milk price
The December price of 62.08 cpl (including VAT) consists of:

• Base milk price for December unchanged at 51.08 cpl (including VAT);
• The Agri-Input Support Payment remains at 6.5 cpl for all milk supplied in December, including volumes in Fixed Milk Price schemes;
• A Sustainability Action Payment of 0.5 cpl (including VAT) is being paid monthly on all milk supplied in 2022 to recognise specific sustainability actions being undertaken on farm;
• A Seasonality Payment of 4.0 cpl (including VAT) which applies to all creamery milk volumes supplied during December that meet quality criteria.

This payment also applies to non-contracted volumes from Autumn calving and Liquid Milk scheme members.

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The base price, Agri-Input Support Payment, Sustainability Action Payment of 0.5cpl and Seasonality Payment will be adjusted to reflect the actual constituents of milk delivered by suppliers.

The Tirlán total price for December creamery milk, based on LTO constituents of 4.2% butterfat and 3.4% protein, is 67.28 cpl (including VAT).
This includes the Sustainability Action Payment, Agri-Input Support Payment and Seasonality Payment.