The overall outlook for the global marketplace remains challenging, according to Tirlan.
Tirlán has cut its base milk price by 3c/L for July supplies, citing “weakening global markets”.
In a statement today it announced that it will pay 35.58c/L (inc VAT) for July milk supplies at 3.6pc butterfat and 3.3pc protein.
The price consists of the following:
According to Tirlán the total price for July creamery milk, based on LTO constituents of 4.2pc butterfat and 3.4pc protein, is 38.70c/L (including VAT).
Tirlán Chairperson John Murphy said: “Global dairy markets continue to weaken which regrettably has necessitated reductions in base price.
“We recognise the challenges of the current high cost operating environment at farm level and significant supports have been provided to assist farmers as the market moved sharply downwards from historical highs.”
The overall outlook for the global marketplace remains challenging, he said.
Earlier this week Kerry announced it was paying 37c/L (inc VAT) for July milk supplies – consisting of a base price of 34c/L (Vat Inc) and a Milk Contract payment of 3c/L (Vat Inc) on all qualifying milk volumes in the month.
It too said that dairy demand continues to struggle with no sign currently of any near-term correction.
“The outlook on commodity dairy continues bearish with further downward pressure on European and Global pricing.
“On the supply side, milk production across the major exporters continues in weak positive territory with volumes more than enough to meet subdued demand.”
