Tirlán has offered suppliers in NI a new 12-month fixed milk price contract starting in January 2024 which pays a guaranteed base of 35p/l.

The contract is voluntary and farmers who wish to sign up must commit a minimum of 10,000 litres under the agreement, up to a maximum 20% of all milk supplied during the previous year.

All normal top up payments for milk quality and volume apply on top of the 35p/l base, as well as the traditional 1.5p/l winter bonus during the relevant months.

Where farmers are paid under Tirlán’s hybrid payment model – which will see 75% of monthly milk in 2024 paid under an A+B-C format (the remaining 25% is paid using conventional increments) – the value of fat and protein will be set to match the 35p/l base.

The co-op is also rolling out a 12-month contract in the Republic of Ireland from 1 January 2024, replicating the same supply volumes. However, the guaranteed base is 40c/l including VAT which currently converts to a sterling equivalent, excluding VAT of 33.5p/l.

Applications for the Tirlán contract open in December.

Last month, Lakeland Dairies announced details of a new 12-month fixed milk price contract in NI, starting January 2024.

Suppliers can commit either 5% or 10% of all milk supplied in 2022. The contract pays a guaranteed 33.5p/l during the first three months and final quarter of 2024. For the six months running from April to September, the payment rate drops back to 32.5p/l.

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