Irish dairy co-operative Tirlán has confirmed a price of 39.08c/L for August milk, including VAT, a temporary 1c/L weather support payment and a 0.5c/L Sustainability Action Payment, and has gone further by announcing a milk price 'floor' for September, October, November and December. On delivered milk constituents, the August average works out at 46.5c/L including VAT.

The four-month floor is 40.08c/L, including VAT and the 0.5c/L sustainability payment, "barring any unforeseen events". Tirlán chairperson Ger O'Brien said: "As a farmer-owned Co-operative, we understand the value of certainty in helping farm families plan cash flow, feed purchases and investment decisions." He said protein markets remain strong but milk supply growth in key exporting regions continues to weigh on overall returns, and promised that any improvement in the market "will ultimately be returned to our farmers".

The floor comes on top of a recently agreed five-year payment framework for the Liquid Milk and Autumn Calving Schemes that takes effect on October 1. The January seasonality payment rises from 7c/L to 9c/L, while December and February stay at 5c/L; the payments are open to all suppliers who meet milk quality criteria. Contracted liquid milk earns a 13c/L premium and contracted Autumn Calving Scheme supplies 12c/L.

A day earlier, on September 17, Dairygold raised its August price by 0.5c/L to 39c/L on standard constituents of 3.3% protein and 3.6% butterfat, including sustainability and quality payments and VAT — an average farm-gate price of 46.7c/L on its suppliers' actual milk solids. Chairperson Pat Clancy said dairy market sentiment "has continued to improve in recent weeks, supported primarily by protein and cheese returns, and a slowdown in European milk supply growth", and that the board will review the price monthly.

Charles O'Donnell reported the announcements for Agriland.

Source: Agriland