Ornua increases its Purchase Price Index
Published 09/11/2016 | 11:36
It comes as farm organisations call for dairy farmers to be paid 30c/L
Ornua, formerly the Irish Dairy Board, has increased its Purchase Price Index (PPI) for October to 95.9.
That figure is equivalent to a farmgate price of 27.9c/L VAT inclusive and assumed costs of 6.5c/L.
It’s a rise from the September PPI of 92.2 and according to Ornua reflects higher returns in the month across all its main products. The September price rise was the highest it had reached in eight months, up from 85.5 in August.
The Ornua Purchase Price Index (PPI) is a monthly indicator of market returns on dairy products sold by Ornua (typically butter, cheese, whole milk powder and protein products), relative to comparable returns generated in a base year (2010).
According to Ornua, the PPI can provide a reference as to how the general dairy market is performing, and may help to guide expectations around likely returns for dairy products and the milk used in their manufacture.
It comes as farm organisations call for dairy processors to pay 30c/L for October. ICMSA Dairy chairman Gerard Quain said that "based on market returns, there is absolutely no reason why the milk price could not be set at 30c/l for October".