Tirlán and Carbery Group have become the latest milk processor to set their prices for April 2023 supplies, following announcements from Lakeland Dairies, Dairygold and Kerry Group.
Tirlán will pay a total of 40.08 cent per litre (cpl) (including VAT) for April creamery milk supplies at 3.6% butterfat and 3.3% protein.
The April milk price of 40.08 cpl (including VAT) consists of the following: a base milk price of 39.58 cpl (including VAT) and a Sustainability Action Payment of 0.5 cpl (including VAT) to all qualifying suppliers.
The base price and the Sustainability Action Payment will be adjusted to reflect the actual constituents of milk delivered by suppliers. The Tirlán milk price for March was 44.08 cpl.
The Tirlán total price for April creamery milk, based on LTO constituents of 4.2% butterfat and 3.4% protein, is 43.55 cpl (including VAT), which includes the Sustainability Action Payment.
Tirlán Chairman John Murphy, in a statement, commented: “Higher interest rates are impacting on working capital costs in the supply chain and are dampening demand in some regions.”
“Global milk supply has risen slightly but is expected to remain on a par with last year’s levels.”
“There have been some very tentative signs of markets bottoming out, albeit at low price levels. The board will continue to review developments on a monthly basis.”
Agri-Input Support Payment
On October 19th, 2022, the Tirlán Board made a commitment that the Agri Input Support Payment of 6.5 cpl would be paid on all milk volumes, including all volumes in Fixed Milk Price Schemes, until the end of the first quarter of 2023.
In that announcement, it was highlighted that the payment was “subject to dairy markets continuing to perform at current high levels and input prices remaining elevated”.
In light of current dairy market returns, the board believes that it is “appropriate to discontinue the payment at this time”.
Meanwhile, Carbery Group has reduced its base milk price for April by 2c/L.
Carbery also agreed to continue to support its milk price from its stability fund and is allocating 3cpl support for April 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 April of 41.25cpl, inclusive of VAT and 0.5cpl SCC bonus.
This decision, a spokesperson outlined in a statement to www.thatsfarming.com , is based on “continuing weakness in dairy market”.
Carbery continues to monitor markets “closely and hopes to see stabilisation soon”.
Read more about milk prices.