Tirlán and Dairygold increase May milk prices

Both Tirlán and Dairygold have increased their base prices for milk supplied in May.

Last week, both Lakeland Dairies and Kerry announced they were holding milk price for May supplies.

Tirlán’s base price for May has risen by 1.9c/l to 39.6c/l, excluding VAT, at 3.6% butterfat and 3.3% protein.

However, it has dropped the 1.43c/l, excluding VAT, weather payment made on last month’s supplies, bringing the actual increase in its milk price to 0.48c/l, excluding VAT.

A sustainability action payment of 0.48c/l, excluding VAT, will also be paid to all qualifying suppliers.

This brings Tirlán’s milk price for the month of May to 40.1c/l, excluding VAT.

Base price

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

The average price paid by Tirlán for May milk, based on delivered constituents, will be 43.2c/l, excluding VAT.

Tirlán chair John Murphy said: “There has been a welcome increase in returns for some dairy products in the past month, led by butter and cheese, and driven by reduced milk supply volumes in some regions.

“However, there is uncertainty on the impact of higher prices on consumer demand over the coming months. The board will continue to monitor the dairy market on a monthly basis.”

Dairygold

The milk price situation at Dairygold for the month of May is similar to that of Tirlán, with base price up and a weather or fodder relief payment removed.

Dairygold has also increased its base milk price for May by 1.9c/l, excluding VAT.

This brings its price to 40c/l, excluding VAT, based on standard constituents of 3.3% protein and 3.6% butterfat, inclusive of sustainability and quality bonuses.

However, with the removal of the 0.95c/l weather or fodder relief payment made in April, this represents a net increase of 0.95c/l, excluding VAT.

This equates to an average farmgate milk price of 43c/l, excluding VAT, based on the average May 2024 milk solids achieved by Dairygold suppliers.

A Dairygold spokesperson said: “The Dairygold board recognises the importance of setting a strong milk price to encourage milk suppliers to maximise milk production for the remainder of the year, following the significant challenges they experienced due to the adverse weather conditions.

“While dairy market returns have improved in the last month, driven primarily by butter prices, there remains uncertainty regarding future pricing due to continuing weaker demand as global milk supply remains flat.

“The Dairygold board will continue to monitor markets closely and review milk price on a monthly basis.”