Tirlán has increased its milk price for November supplies by 2c/l, bringing the base milk price for the month to 32.93c/l excluding VAT.

Including the sustainability action payment of 0.47c/l excluding VAT, the price comes to 33.4c/l.

The base price and sustainability action payment will be adjusted to reflect the actual constituents of milk delivered by suppliers.

Tirlán chair John Murphy said: “After a period of milk price reductions for our milk suppliers, it is welcome to see the first increase in base price since September 2022.

“The main driver of increased market returns is the reduction in milk supply in some key regions. It would be welcome to also see improvements in end user demand, which remains challenged by inflationary pressures and geopolitical issues,” he said.

“At this time of year, it is important to recognise our suppliers that milk throughout the winter months to ensure consumers have access to high-quality fresh dairy products.

"We have committed to a series of significantly enhanced seasonal payments that reflect our commitment to our top-quality portfolio of branded dairy products,” he said.

Increased seasonality payments

In recognition of the higher-cost production model of winter milk and increased operating costs on farm, the board of Tirlán has approved enhanced seasonality payments, liquid and autumn calving scheme (ACS) premiums for the next contract period.

Each contracted liquid and ACS supplier will receive a detailed letter setting out their proposed new enhanced contract details and the option of a voluntary exit package for those wishing to switch away from the supply of milk all year round.

In recognition of the higher farm costs being incurred at present, liquid and ACS suppliers will receive an increased premium payment for all contracted volumes that meet quality criteria during November and December 2023.

Unconditional rates

Unconditional seasonality bonus payments apply over the winter months of December, January and February on all non-contracted milk volumes that meet quality criteria.

The payment rate for December 2023 and January 2024 is 3.8c/l excluding VAT, with 2.8c/l excluding VAT available for February 2024.

The payment will increase to 4.76c/l excluding VAT in December 2024; 6.6c/l excluding VAT in January 2025 and 4.76c/l excluding VAT in February 2025. Payment will be adjusted to reflect the actual constituents of the milk delivered.