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Tirlán has increased its November base by 3p/l, making it the highest price increase across all processors for milk supplied last month.
The announcement last Friday followed on from a producer meeting on Wednesday night when NI suppliers made clear their displeasure at falling prices during 2023, with the company paying a base price below 30p/l since July and a 27.4p/l base in October.
It is understood that suppliers staged a walk-out before the meeting concluded.
In addition to the base price increase, Tirlán has also made a number of changes to its milk pricing structure, starting with its winter bonus payment.
A 3p/l payment will now be made on all litres during the four months from November to February, up from 1.5p/l.
For the average NI dairy farm supplying 240,000 litres over the outlined period, the increase is worth an extra £3,600.
Along with a 0.4p/l sustainability payment, Tirlán will pay suppliers a starting price of 33.4p/l for November, up 6p/l on the October price.
Increment freeze
Another change from January 2024 is an increase in the value of butterfat and protein as originally planned under Tirlán transition to an A+B-C payment system.
As part of that transition, most suppliers opted for a hybrid model, with 75% of milk to be paid using A+B-C from 1 January 2024, before the final switchover to a milk solids payment system by 2025.
For the proportion of milk valued using the conventional payment system, butterfat increments rise from 0.027p/l to 0.03p/l next year, with protein increasing from 0.049p/l to 0.054p/l.
Fat and protein were also meant to increase to a new base of 3.90% and 3.25%, but Tirlán is now freezing both constituents at the current 3.88% and 3.23%.
For a farmer supplying 750,000 litres annually at average solids and paid using the hybrid model, the higher value put on butterfat and protein increments is worth £300 in 2024.
TBC
The company has also changed payment rates relating to milk hygiene from January 2024. For TBC below 11, the payment is 0.45p/l, and for TBC from 12 to 30, it is 0.35p/l.
Aurivo
The other milk processor who hadn’t set a price by last Thursday’s Winter Fair was Aurivo, and it has now confirmed a 1.25p/l increase taking base price to 32.31p/l once a 2p/l winter bonus is added in.
That Aurivo price is just ahead of Lakeland Dairies’ “all-in” price of 32.25p/l, Strathroy Dairies with a price of 32p/l and Leprino Foods on 31.5p/l.
Dale Farm remains out in front, with an “all-in” price of 34.55p/l before milk collection charges apply.
Our monthly milk league analysis of November prices will be published in the first edition of the new year (dated 6 January 2024).
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