Tirlán and Kerry Group have become the latest processors to set their August milk price, following Lakeland Dairies’ announcement.
Tirlán has confirmed in a statement to www.thatsfarming.com will pay a total of 33.08 cent per litre (cpl) (including VAT) for August creamery milk supplies at 3.6% butterfat and 3.3% protein.
The August milk price of 33.08 cpl (including VAT) is down 2.5 cpl from July and consists of the following:
- Base milk price of 32.58 cpl (including VAT);
- Sustainability Action Payment of 0.5 cpl (including VAT) to all qualifying suppliers.
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 August creamery milk, based on LTO constituents of 4.2% butterfat and 3.4% protein, is 36.00 cpl (including VAT).
Tirlán chairperson, John Murphy, has outlined that inflation, higher interest rates and ongoing destocking continue to impact buyer behaviour.
He also pointed to strong domestic milk production in China and weaker economic data from that region which has also negatively impacted market sentiment.
He said: “The margin pressures facing milk suppliers in most parts of the world are likely to curb global milk supply, although the timing remains uncertain.”
“Having supported milk price strongly through the peak milk supply months, we will continue to focus on providing as much of a buffer as possible against very weak markets.”
“The board will continue to review developments on a monthly basis,” he concluded in a statement.
Previously, Tirlán announced that it would pay a total of 35.58 cent per litre (cpl) (including VAT) for July creamery milk supplies at 3.6% butterfat and 3.3% protein.
Meanwhile, in a statement to this publication, Kerry Group has announced its price for August milk supplies.
It will pay 35 cent per litre (Vat Inc) at 3.30% Prot/3.60% Bfat consisting of a base price of 32 cent per litre (Vat Inc) and a Milk Contract payment of 3 cent per litre (Vat Inc) on all qualifying milk volumes.
Its August milk price at EU Standard Constituents (3.4% Prot/4.2% Bfat) is 38.44 cent per litre.
Based on Kerry’s average milk solids for August, the milk price return inclusive of VAT and bonuses is 39.80 cent per litre.
A spokesperson, in the statement, outlined that “a short to medium-term outlook on commodity dairy continues bearish with little sign of any demand-side correction in the offing”.
“The supply side across the major exporting regions has been more robust than anticipated year-to-date with signs of more significant softening just becoming apparent,” the spokesperson added.
Previously, the processor announced that its milk price for July supplies was 37 cent per litre (Vat Inc) at 3.30% Prot/3.60% Bfat, consisting of a base price of 34 cent per litre (Vat Inc) and a milk contract payment of 3 cent per litre (Vat Inc) on all qualifying milk volumes in the month.
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