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Ireland 22.01.2024

Tirlán Raises Base Milk Price and Introduces Seasonality Bonus for December

Source: The DairyNews
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Tirlán has announced a base milk price increase of 1 cent per liter (c/L) for milk supplied in December, setting the base price at 35.58c/L.
Tirlán Raises Base Milk Price and Introduces Seasonality Bonus for December
This reflects a positive adjustment compared to the previous monthly milk price for November. The base price, inclusive of VAT, is calculated based on standard constituents of 3.6% butterfat and 3.3% protein.

In addition to the base price, Tirlán introduces a seasonality payment of 4c/L (including VAT) for all December milk meeting quality criteria. This seasonality payment extends to non-contracted volumes from autumn calving and liquid milk scheme members. Recognizing the higher costs incurred in milk production during the winter months, the seasonality bonus will be applicable to December, January, and February milk volumes.

Furthermore, a sustainability action payment of 0.5c/L (including VAT) will continue to be applied to all qualifying suppliers. Suppliers are encouraged to register their sustainability actions on the Tirlán Farmlife website before January 26 to secure this additional payment.

The total price offered, inclusive of the base price, seasonality payment, and sustainability action payment, amounts to 40.08c/L for qualifying milk. Tirlán emphasizes that these payments will be adjusted to reflect the actual constituents of the delivered milk by suppliers.

John Murphy, Chairperson of Tirlán, expressed the board's satisfaction in increasing the base price to align with improvements in global markets. The reduction in milk supply from key regions is identified as the main driver for increased market returns. However, Murphy acknowledges the importance of closely monitoring demand trends amid inflationary pressures and geopolitical tensions.

The seasonality bonus payment is positioned as a recognition of the higher production costs during the winter months, offering additional support to farmers. The bonus will see incremental increases in the coming years, reaching 5c/L in December 2024, 7c/L in January 2025, and 5c/L in February 2025. Payment adjustments will be made based on the actual constituents of the delivered milk.

Tirlán remains committed to responding to market dynamics and providing fair compensation to its suppliers while navigating the challenges posed by external factors.
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