Tirlán, Dairygold, Carbery and other processors increase returns as weather challenges milk production
Ireland: Several Irish dairy cooperatives have increased or maintained their July milk prices as challenging weather conditions, weak grass growth and rising production costs put pressure on farmers. Tirlán has also introduced a new five-year payment framework for suppliers participating in its Liquid Milk and Autumn Calving Schemes.
The price adjustments come as milk supplies tighten across parts of Europe, with processors indicating that reduced production could provide stronger support to dairy markets later in the year.
Tirlán raises July milk price
Tirlán’s board approved a 1 cent-per-litre increase to its original three-month price commitment covering June, July and August.
The resulting manufacturing milk price for July supplies is 39.08cpl, including a 1cpl Weather-Support payment and a 0.5cpl Sustainability Action Payment.
The cooperative said the August payment run will also include the 1cpl Weather Support payment on all June milk volumes.
Based on delivered milk constituents, the actual average price paid by Tirlán for July creamery milk is expected to reach 43.82cpl, including VAT.
Tirlán chairperson Ger O’Brien said exceptionally low grass growth was significantly affecting milk supply. Deliveries to the cooperative in August were running 8% below the same period last year.
He added that farmers were facing substantially higher production costs and would need improved market returns to maintain milk production through the latter part of the year.
New five-year framework for autumn calving suppliers
Tirlán has also confirmed new payment rates for its Liquid Milk and Autumn Calving Scheme suppliers.
The five-year payment framework takes effect from October 1 and is designed to recognise the additional costs and commitments associated with supplying milk during winter.
A key change is the increase in the unconditional January seasonality payment from 7cpl to 9cpl. December and February payments will remain at 5cpl.
The package also includes a 13cpl liquid milk premium on contracted liquid milk supplies and a 12cpl premium for contracted Autumn Calving Scheme supplies.
Dairygold increases July price
Dairygold’s board increased its July quoted milk price by 0.5cpl, taking the total to 38.5cpl based on standard constituents of 3.3% protein and 3.6% butterfat.
The figure includes Sustainability and Quality payments and VAT.
Based on the average milk solids achieved by suppliers, the resulting average farm-gate milk price is approximately 43.0cpl for July.
At EU-standard constituents of 3.4% protein and 4.2% butterfat, the quoted price reaches 42.2cpl, including VAT.
Carbery adds support payment
Carbery has also increased its July milk price, with the base price rising by 0.5cpl and an additional 0.5cpl support payment being provided for July.
Across the four West Cork cooperatives — Bandon, Barryroe, Drinagh and Lisavaird — this would result in an average price of 41.84cpl, including VAT, the SCC bonus and FutureProof sustainability bonus.
Based on actual milk solids, the average July return is expected to reach 45.75cpl including VAT.
Carbery said it recognised the difficult operating conditions facing its farmer suppliers due to the current weather.
Other processors also increase returns
Kinisla announced a July milk price of 39.1cpl, including VAT and quality and sustainability bonuses, representing an increase of 1.1cpl.
At EU-standard constituents, the price equates to 42.82cpl. Based on the cooperative’s average July milk solids, the return is expected to reach 42.25cpl.
Lakeland Dairies has increased its July milk price by 1cpl, with a base price of 38.5cpl at 3.6% butterfat and 3.3% protein, including its Sustainability Incentive Payment.
The cooperative said European milk supply growth was easing, partly because of the impact of summer temperatures.
Tighter supply could support dairy markets
The latest price announcements highlight the increasing influence of weather and production costs on Irish dairy farmers.
With grass growth severely affected in some regions and European milk production showing signs of slowing, processors believe tighter supply could improve market conditions.
Kinisla noted that if the contraction in European milk supply continues during the second half of the year, reduced product availability could provide stronger support to European dairy prices, particularly if demand improves.
For Irish dairy farmers, however, higher milk prices will need to keep pace with elevated feed, production and weather-related costs. The combination of improved market returns and longer-term payment support could therefore prove important for maintaining milk production into the winter months.
