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HomeFarming NewsCarbery & Tirlán confirm further milk price cut
Catherina Cunnane
Catherina Cunnanehttps://www.thatsfarming.com/
Catherina Cunnane hails from a sixth-generation drystock and specialised pedigree suckler enterprise in Co. Mayo. She currently holds the positions of editor and general manager at That's Farming, having joined the firm during its start-up phase in 2015.
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Carbery & Tirlán confirm further milk price cut

A further number of processors have set their milk price for March 2023 supplies, following Lakeland Dairies’ and Kerry Group’s announcements earlier this week, writes farming journalist, Catherina Cunnane.

Carbery and Tirlán have, today (Wednesday, April 19th, 2023), released statements confirming milk price cuts of up to 5c/L.

Firstly, Carbery has reduced its milk price for March by 6cpl and applied 2cpl support from the stability fund, resulting in a net reduction of 4cpl.

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 March of 44.44cpl, inclusive of VAT and 0.5cpl Somatic Cell Count (SCC) bonus.

Carbery, in a statement to this publication, outlined that it will continue to monitor dairy market performance “closely”.

March milk prices down

Tirlán has followed suit, with a 5c/L cut to its base price for March 2023 milk supplies, and has committed to paying a total of 44.08 cent per litre (cpl) (including VAT) for March creamery milk supplies at 3.6% butterfat and 3.3% protein.

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The March price of 44.08 cpl (including VAT) consists of the following:

  • Base milk price for March of 36.08 cpl (including VAT), a decrease of 3cpl;
  • A weather-related payment of 1.0 cpl (including VAT) for all milk supplied in March (bringing the net reduction to 2 cpl);
  • An Agri-Input Support Payment of 6.5 cpl for all milk supplied in March, including volumes in Fixed Milk Price schemes;
  • A Sustainability Action Payment of 0.5 cpl (including VAT) to all qualifying suppliers.

The base price, Agri-Input Support Payment, Sustainability Action Payment, and Weather-related Payment will be adjusted to reflect the actual constituents of milk delivered by suppliers.

The Tirlán total price for March creamery milk, based on LTO constituents of 4.2% butterfat and 3.4% protein, is 47.87 cpl (including VAT). This includes the Agri-Input Support Payment, Sustainability Action Payment, and Weather-related Payment.

Downward pressure on dairy commodity prices

Tirlán chairman John Murphy commented that the month of March was challenging on-farm, with difficult weather conditions and elevated farm input costs.

Market returns, he outlined, continue to show weakness relative to the highs of last year, and this has to be reflected in our farm gate milk price.

“The key drivers of the downward pressure on dairy commodity prices have been milk production growth and relatively weak import volumes in some regions.”

“The board will continue to monitor the situation on a monthly basis,” Murphy concluded.

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