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Tirlán Increases July Milk Price by 1.75c/L Amid Tight Supply

Ireland 19.08.2024
Source: DairyNews.today
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Tirlán, the Kilkenny-based dairy processor, has announced an increase in the milk price it will pay for July supplies. The company will pay a total of 44.83c/L, including VAT, for July creamery milk supplies with a standard composition of 3.6% butterfat and 3.3% protein. This adjustment represents a 1.75c/L increase from the price paid in June.
Tirlán Increases July Milk Price by 1.75c/L Amid Tight Supply
The July milk price comprises a base price of 44.33c/L, inclusive of VAT, along with a Sustainability Action Payment of 0.5c/L, also inclusive of VAT, awarded to all qualifying suppliers. Tirlán has specified that both the base price and the sustainability payment will be adjusted based on the actual milk constituents delivered by suppliers.

On average, Tirlán’s co-op members can expect to receive 49.66c/L for their July creamery milk, including VAT, based on delivered milk constituents.

Market Dynamics and Global Supply

John Murphy, Chair of Tirlán, noted that butter and cream prices have seen significant increases in recent weeks, driven by tight supply conditions. He explained that milk constituent levels across Europe have been adversely affected by weather and feed challenges, resulting in lower butterfat availability.

Looking ahead, Murphy highlighted that global milk supply is expected to rise in the coming months, but overall output is likely to remain comparable to the previous year, with only marginal increases anticipated. The seasonal ramp-up of production in the southern hemisphere is projected to be a key factor influencing market dynamics in the near term.

Murphy emphasized that the Tirlán board will continue to closely monitor dairy market trends on a monthly basis to ensure informed decision-making.

Dairygold Follows Suit with Milk Price Increase

In a related development, Dairygold has also announced an increase in its July milk price. The Dairygold board has raised the quoted milk price by 2.0c/L to 44.5c/L, based on standard constituents of 3.3% protein and 3.6% butterfat, inclusive of sustainability and quality bonuses, and VAT. This price adjustment equates to an average farm gate milk price of 49.8c/L for July 2024, reflecting the average milk solids achieved by Dairygold suppliers.

These price adjustments by both Tirlán and Dairygold underscore the ongoing challenges and volatility in the global dairy market, as well as the companies' efforts to support their suppliers amid fluctuating market conditions.

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