Tirlán has today (Tuesday, January 20) become the latest processor to announce what it will pay farmers for December milk supplies.

The processor confirmed that it will pay a total of 41.08c/L, including VAT, for December creamery milk supplies at 3.6% butterfat and 3.3% protein.

Tirlán said that the December milk price consists of the following:

Base milk price of 35.58c/L (including VAT), unchanged from November;
A Seasonality Payment of 5.0c/L (including VAT) which applies to all creamery milk volumes supplied during December that meet quality criteria. This payment also applies to non-contracted volumes from our Autumn calving and Liquid Milk scheme members;
Sustainability Action Payment of 0.5c/L (including VAT) to all qualifying suppliers.

The processor added that the base price, Seasonality Payment and Sustainability Action Payment will be adjusted to reflect the actual constituents of milk delivered by suppliers.

The actual average price paid by Tirlán for December creamery milk, based on delivered constituents, will be 53.01c/L (including VAT).

Tirlán

Tirlán confirmed that unconditional seasonality bonus payments will be paid over the next three months on any milk volumes that do not qualify for Liquid Premium or the Autumn Calving Scheme.

The rates of payment are 5c/L for December, 7c/L for January and 5c/L for February. The processor said the payments will be adjusted to reflect the constituents of the milk delivered.

The board of Tirlán has today agreed that the same rates of seasonality bonus payments will apply in December 2026 (5c/L), January 2027 (7c/L) and February of 2027 (5c/L).

The board has today also confirmed its intention to hold the current milk price for January and February supplies, subject to any unforeseen events.

This will see a milk price for January of 43.08c/L and 41.08c/L for February, inclusive of seasonality bonus payments.

VAT

Tirlán said that this month’s milk payment is based on the reduced VAT Flat Rate Addition which applies for payments made after January 1, 2026.

In Budget 2026, the government reduced the VAT Flat Rate addition for non-VAT registered farmers from 5.1% to 4.5%.

"Based on Tirlán’s VAT-inclusive milk price of 36.08c/L announced by the board for November and December, the milk price announced this month for December milk should be reduced by 0.21c/L to adjust for the reduction in the VAT rebate from the government.

"The board has decided to absorb this cost in the short term, but confirmed that it will be reflected in milk pricing from March milk onwards," Tirlán said.

Tirlán recently held eight business and market outlook meetings across the co-op’s catchment area for milk suppliers.

Tirlán chair John Murphy said it was "great to engage with our farmer members across the country".

"Farmers are understandably concerned at the dairy market outlook, but appreciated that the co-op is doing all it can to support them.

"At the meetings, we told our milk suppliers that we are currently paying somewhat ahead of market returns.

"This reflects our desire to support our milk suppliers over what are very high cost production months," he said.

Support package

Murphy added that Tirlán already announced a €5.5 million agri support package in December.

He said this package is aimed at supporting milk suppliers through the early stages of the 2026 lactation.

Rebates are available to Tirlán milk suppliers who spent at least 5c/L with their co-op in 2025, or who do so in 2026.

"I would encourage all milk suppliers to engage with their local Tirlan representative and consider trading with their own co-op to avail of that support.

“The board will continue to monitor market developments on a monthly basis," Murphy said.