Arrabawn, Carbery and Tirlán have revealed their milk price for May 2023 supplies, writes farming journalist, Catherina Cunnane.
Arrabawn has confirmed that it will pay its suppliers a base milk price of 39.69c/L, including VAT, for milk at 3.3% protein and 3.6% butterfat.
Arrabawn’s average milk price for May, inclusive of VAT and bonuses, is 41.47 c/L.
The quoted milk price for May based on EU standard constituents of 3.4% protein and 4.2% butterfat is 43.05c/L, including VAT.
Last month, the processor paid an April price of 41.19c/L, including VAT which represented a 3c/L fall on its March price.
Meanwhile, Carbery has held its base milk price for May and also agreed to continue to support its milk price from its Stability Fund and is allocating 3c/L support for May milk.
If this decision is replicated across the four West Cork co-ops, Bandon, Barryroe, Drinagh and Lisavaird, this will result in an average price for May of 41.25cpl, inclusive of VAT and 0.5cpl Somatic Cell Count (SCC) bonus.
A spokesperson for Carbery said that they “continue to be concerned about dairy markets performance and, in particular, the slow demand recovery to date”.
Lastly, Tirlán will pay a total of 40.08 cent per litre (cpl) (including VAT) for May creamery milk supplies at 3.6% butterfat and 3.3% protein.
The May milk price of 40.08 cpl (including VAT) remains unchanged from April and consists of the following:
- Base milk price supported by 3 cpl to remain at 39.58 cpl (including VAT);
- A 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.
As per previous policy, market support will apply to Fixed Price Volumes where the Scheme price is below 39.58 cpl.
The Tirlán total price for May creamery milk, based on LTO constituents of 4.2% butterfat and 3.4% protein, is 43.55 cpl (including VAT).
Tirlán chairperson John Murphy said: “Given the challenges on farm, the Board has decided to support our base price by 3 cpl for May in order to maintain our overall milk price for the month.”
“The global inflationary environment and rising interest rates continue to have an impact on buyer behaviour and market sentiment.”
“We note a welcome stabilisation in the price of certain dairy products but other categories remain more challenging.”
“The board will continue to review market developments on a monthly basis,” Murphy concluded.