Tirlán has cut a further 3c/l off its base price for April milk supplies.
The co-op will pay farmers 37.99c/l, excluding VAT at 3.6% butterfat and 3.3% protein.
The April milk price is down from the 41.98c/l excluding VAT Tirlán paid farmers for their March supplies.
April’s milk price includes a sustainability action payment of 0.5c/l to all qualifying suppliers.
Tirlán chair John Murphy said that “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.”
Tirlán has also decided to discontinue its agri input support payment for suppliers.
On 19 October 2022, the Tirlán board made a commitment that such a payment of 6.5c/l 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 the current dairy market returns, the Tirlán board now believes ending such a farmer payment is “appropriate”.
Elsewhere, Kerry Group has confirmed that it will pay farmers 36.02c/l for their April supplies, excluding VAT and at 3.3% protein and 3.6% butterfat. The April price is 2c/l less than the 38.1c/l farmers received for March supplies.
Dairygold also reduced its milk price for April by 2c/l to 38.09c/l, excluding VAT for all milk supplied at 3.3% protein and 3.6% butterfat.
Last week, Lakeland Dairies cut its April milk price by 3.8c/l on the March price. Suppliers in the Republic of Ireland saw their price fall below the 40c/l mark to 37c/l, excluding VAT.