Tirlán has reduced its base milk price for February by some 6c/L to 39.08c/L.

The cut mirrors similar milk price cuts by other milk processors in recent weeks and is its lowest price since October 2021.

Tirlán said it would pay a total of 49.08c/L (including VAT) for February creamery milk supplies at 3.6% butterfat and 3.3% protein. The price consists of the following:

Base milk price for February of 39.08 cpl (including VAT), a decrease of 6cpl;

An Agri-Input Support Payment of 6.5 cpl for all milk supplied in February, including volumes in Fixed Milk Price schemes;

A Sustainability Action Payment of 0.5 cpl (including VAT) to all qualifying suppliers;

A Seasonality Payment of 3.0 cpl (including VAT) which applies to all creamery milk volumes supplied during February that meet quality criteria. This payment also applies to non-contracted volumes from Autumn calving and Liquid Milk scheme members.

Tirlán said total price for February creamery milk, based on LTO constituents of 4.2% butterfat and 3.4% protein, is 53.25 cpl (including VAT). This includes the Sustainability Action Payment, Agri-Input Support Payment and Seasonality Payment.

Tirlán Chairman John Murphy said its farm gate milk price unfortunately needs to move lower this month to reflect the significant correction in market returns that occurred between September and January.

"While there has been some recent signs of stabilisation in dairy commodity markets at low levels, buyers remain cautious in the current inflationary environment, especially as milk volumes across Europe increase towards seasonal peak.

"Farm input costs remain elevated and the Board will continue to closely monitor the situation on a monthly basis,” he said.