Tirlán sets July milk price and expands drought support

Tirlán has approved a weather-related adjustment of 1c/L for milk supplied in June, July and August. The adjustment applies to the three-month price commitment announced on June 18 and means that the July manufacturing price includes the 1c/L Weather-Support Payment and a 0.5c/L Sustainability Action Payment.

The stated July manufacturing price is 39.08c/L. Tirlán said the base price and both additional payments will be recalculated according to the actual constituents of each supplier’s milk. On that basis, the processor’s average payment for July creamery milk will be 43.82c/L including VAT. The August payment run will also contain the 1c/L weather payment for all milk supplied in June.

The support package totals €15m. Of that amount, €10m will finance the Weather Support Payment, while €5m is allocated to the drought programme that gives suppliers rebates on feed and fertiliser. The rebate’s qualifying period has been extended for a third time, and now covers purchases until September 19. Payments are set at €40 per tonne for GAIN dairy feeds, €10 per tonne for rolled cereals and €3 per tonne for straight feed.

Ger O’Brien, Tirlán’s chairman, said grass growth had reached exceptionally low levels and that August milk deliveries were 8% below the equivalent period a year earlier. “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.

O’Brien said many farms were relying heavily on silage, which was raising production costs, lowering milk output and drawing on winter fodder reserves. Tirlán said grass growth had effectively stopped on many farms and that average farm covers were at record-low levels for a period when farmers would normally be building supplies for autumn grazing. The processor is increasing credit facilities for agri-customers and will offer technical guidance through webinars and branch clinics on cow nutrition and fodder budgets. The first webinar was scheduled for Thursday, August 20, at 2pm.

The board also approved a five-year payment framework for suppliers in the liquid-milk and autumn-calving schemes, effective October 1. The January seasonality payment will rise from 7c/L to 9c/L, while the December and February payments will remain at 5c/L, subject to milk-quality requirements. The framework includes a 13c/L premium for contracted liquid milk and a 12c/L premium for contracted autumn-calving supplies, alongside additional measures for periods of milk-price volatility.

Ailish Byrne, Tirlán’s chief agribusiness officer, said the higher unconditional January payment would benefit many suppliers. She said the framework, together with the two premiums, would provide greater certainty for producers supplying milk during winter months and allow them to plan and invest in their businesses while maintaining supplies of fresh milk.