Tirlán has announced that it will pay milk suppliers a weather support payment of 0.96c/l ex-VAT for milk supplied in June, July and August.
This support payment is in addition to Tirlán’s base milk price of 35.96c/l ex-VAT for July milk and a sustainability payment action payment of 0.48c/l ex-VAT to all qualifying suppliers.
In June, the co-op had originally announced a three-month milk price commitment covering milk supplied during these months, barring unforeseen circumstances.
Tirlán has stated that the weather support payment comes in light of the significant and widespread impact of drought conditions across the majority of the Tirlán catchment area.
Tirlán’s €15m support package for milk suppliers includes the €10m weather-related milk payment covering June, July and August milk supplies, as well as a €5m drought support package available from 10 July to 19 September.
Reduced milk supply
Tirlán chair Ger O'Brien said that exceptionally low grass growth is having a significant impact on milk supply, with deliveries to Tirlán in August running 8% behind the same period last year.
“Our farmers are dealing with severely elevated milk production costs and will require an improvement in market returns in order to sustain milk production into the backend.”
Extended drought support package
The co-op has further extended its drought support package to 19 September in light of continued dry conditions.
“Many of our milk suppliers are now heavily dependent on silage in the diet, which is increasing production costs, reducing milk output and drawing heavily on winter fodder reserves.
"Grass growth has effectively stalled on many farms, while average farm covers are at record low levels at a time when farmers would normally be building grass supplies for autumn grazing,” O’Brien stated.
“We would encourage all milk suppliers to engage with our technical teams to help manage their herds over the coming weeks, maintain milk production and secure adequate fodder supplies for the winter."
The package provides:
Technical support
The co-op is hosting a series of technical webinars over the coming months to provide detailed nutritional advice, with the first on Thursday 20 August at 2pm.
Additionally, it's planning a series of branch clinics for diet formulation and to create individual fodder budgets.
Tirlán is also providing increased credit facilities for its agri customers to accommodate higher on-farm expenditure.
Liquid milk, autumn calving and seasonality payment rates
The Tirlán board has also approved a new five-year payment framework for participants in the liquid milk and autumn calving schemes, effective from 1 October 2026.
Contracted liquid milk suppliers will receive a 12.44c/l ex-VAT liquid milk premium and contracted autumn calving scheme supplies are set for a 11.48c/l ex-VAT premium.
Meanwhile, the unconditional January seasonality payment has been increased from 6.70c/l to 8.61c/l ex-VAT, while the unconditional seasonality payments for December and February will remain at 4.78c/l ex-VAT.
The new arrangement aims to provide greater certainty and support for suppliers over the duration of the agreement, while reinforcing the long-term sustainability of liquid milk production, the co-op said.
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