Fixed Milk Price schemes were “the issue the board put most time and resources into”, Tirlán chair John Murphy told suppliers on Wednesday.

Murphy said the three supports, the interest-free loan of 5c/l, the input support scheme, currently 6.5c/l, and the fixed milk price support scheme combined to deliver a minimum average price of 48.5c litre. That last scheme remains open through next week.

“Some people think we haven’t gone far enough, others think we’ve gone way too far,” he said. “The board had to strike a balance, let’s see how things unfold this year” he concluded.

The issue completely dominated the question and answer session, with suppliers both committed to fixed price schemes and others uninvolved making comment.

The figures quoted by John Murphy and Jim Bergin were challenged. The input support averaged 4.5c in 2022, it was said, and the loan must be repaid in full, although interest-free. As for the fixed milk price support scheme, it commits milk through to the end of 2024, exposing suppliers to further risk in volatile markets for milk and inputs. Ned Morrissey spoke from the floor of a breakdown in trust between co-op and suppliers.

IFA proposals

The previous Friday, over 200 farmers had gathered in the Newpark Hotel to discuss the matter. The IFA organised the meeting, with Waterford IFA chair saying that Tirlán has given their own suppliers and shareholders no respect by failing to have any representation at the meeting.

Following the meeting, the IFA wrote to Tirlán, calling for the input support payment to be continued at it’s current level of 6.5c/l for all of 2023. The 2022 milk in fixed price schemes should receive an extra 2c/l payment, to bring the base price towards the cost of production.