This is a 4.5c/L reduction on January prices, when it paid 53.4c/L, but the base price of 39.08c/L (including VAT), represents a decrease of 6c/L for February milk.
The February price includes a seasonality payment of 3c/L (including VAT) that will be paid on all creamery milk volumes supplied in February that meet quality criteria. The February price of 49.08c/L (including VAT) consists of the following:
- Base milk price for February of 39.08c/L (including VAT), a decrease of 6cpl;
- An agri-input support payment of 6.5c/L for all milk supplied in February, including volumes in fixed milk-price schemes;
- A sustainability action payment of 0.5c/L (including VAT) to all qualifying suppliers;
- A seasonality payment of 3c/L (including VAT) which applies to all creamery milk volumes supplied during February that meet quality criteria. This payment also applies to non-contracted volumes from autumn calving and liquid milk scheme members.
The base price, Agri-Input Support Payment, Sustainability Action Payment and seasonality payment will be adjusted to reflect the actual constituents of milk delivered by suppliers.
The Tirlán total price for February creamery milk, based on LTO constituents of 4.2 per cent butterfat and 3.4 per cent protein, is 53.25c/L (including VAT). This includes the sustainability payment, agri-input payment and seasonality payment.
Tirlán chair, John Murphy said: “Our farm gate milk price unfortunately needs to move lower this month to reflect the significant correction in market returns that occurred between September and January. While there have been some recent signs of stabilisation in dairy commodity markets at low levels, buyers remain cautious in the current inflationary environment, especially as milk volumes across Europe increase towards seasonal peak. Farm input costs remain elevated and the board will continue to closely monitor the situation on a monthly basis.”