Tirlán’s Milk Price Takes a Hit: March Sees a Decrease

"Tirlán Decreases Base Milk Price for March Supply by 3c/L, Farmers Express Concerns"

Tirlán, an Irish dairy processor, has announced a reduction in its base milk price paid to farmers for milk supplied in March. The decrease is by 3c/L, and the processor will pay a total of 44.08c/L (including VAT) for March creamery milk supplies at 3.6% butterfat and 3.3% protein. The price of 44.08c/L for March consists of the following: Base milk price for March of 36.08c/L (including VAT), which is a decrease of 3c/L compared to February; A weather-related payment of 1.0c/L (including VAT) for all milk supplied in March (bringing the net reduction to 2c/L); An Agri-Input Support Payment of 6.5c/L for all milk supplied in March, including volumes in fixed milk-price schemes; A Sustainability Action Payment of 0.5c/L (including VAT) to all qualifying suppliers.

Tirlán has stated that 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. Based on standard European constituents of 4.2% butterfat and 3.4% protein, the Tirlán total price for March creamery milk is 47.87c/L, including VAT, the Agri-Input Support Payment, Sustainability Action Payment, and the weather-related payment.

According to John Murphy, the chair of Tirlán, the month of March was challenging for farmers due to difficult weather conditions and elevated farm input costs. Market returns continue to show weakness relative to the highs of last year, and this has to be reflected in the farmgate 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.

The reduction in milk prices has come as a blow to farmers who are already struggling with the impact of Covid-19. The Irish Farmers’ Association (IFA) has expressed disappointment over the decision of Tirlán to cut milk prices. The association’s dairy chair, Tom Phelan, has said that the move will have a significant impact on farmers’ incomes. Phelan has also called on other processors to hold their prices and support farmers during this difficult time.

The IFA has urged the government to take action to support farmers who are facing a severe income crisis. The association has called for the introduction of measures to address the impact of Covid-19 on the dairy sector, including the provision of low-cost loans, the extension of the tax deferral scheme, and the establishment of a hardship fund for farmers.

The reduction in milk prices by Tirlán is in line with the trend seen across Europe, where milk prices have been falling due to the impact of Covid-19 on the dairy sector. The pandemic has disrupted global supply chains, leading to a decline in demand for dairy products. This has resulted in a surplus of milk, which has put downward pressure on prices.

In conclusion, the reduction in milk prices by Tirlán has come as a blow to farmers who are already struggling with the impact of Covid-19. The move has been criticized by the Irish Farmers’ Association, which has called on other processors to hold their prices and support farmers during this difficult time. The government has been urged to take action to address the income crisis faced by farmers, including the provision of low-cost loans and the establishment of a hardship fund. The reduction in milk prices is in line with the trend seen across Europe, where milk prices have been falling due to the impact of Covid-19 on the dairy sector.

Categories: Agriculture