Town of Monaghan has announced that it will change the way it pays for milk in the Republic of Ireland from 1 September.

Speaking to the Irish Farmers Journal on Wednesday, Aidan McCabe from Town of Monaghan said: “We will switch to the A+B-C payment of milk to better reflect that it’s milk solids we want from our farmers.”

The change means that Town of Monaghan will be one of the last major processors collecting substantial volumes of milk to change how it pays for milk. There has been no change to how milk is paid for in Northern Ireland.

We also understand that Town of Monaghan will introduce two new off-season bonuses.

A spring bonus of 3c/l will come into effect for all milk supplied in January and February. Aidan said: “In effect, this bonus has been created to correct the slippage in calving date for spring herds which happened during the quota era.”

Town of Monaghan is also introducing a 3c/l November and December bonus if over 50% of May milk is supplied in November and December in each month. McCabe said: “We understand winter-produced milk is not as profitable but, for various reasons, some producers are constrained on limited land base etc.”

Milk price

Meanwhile, Town of Monaghan was the final co-op to announce a July milk price when the board met last Thursday and cut by 1c/l in the Republic and 1p/l in Northern Ireland (NI).

Town of Monaghan will pay 27c/l, including VAT, to its suppliers in the Republic and 18p/l in NI for July milk.