Ornua's purchase price index increases slightly
The Ornua Purchase Price Index for February is 107.64 (32.3c/L VAT inclusive, based on Ornua’s product purchase mix and assumed costs of 6.5ppl).
This is a slight reduction on the Purchase Price Index for January, which was set at 107.6 (32.2c/L VAT inclusive, based on Ornua’s product purchase mix and assumed costs of 6.5ppl) and is adjusted from 107.5 in December 2018.
According to Ornua last month, the January 2019 Index remains largely unchanged from the previous month, with higher SMP and butter prices offset by a combination of lower spot returns and the product mix in the month.
The Ornua Purchase Price Index (PPI) is a monthly indicator of market returns on dairy products purchased by Ornua (typically butter, cheese, whole milk powder and protein products), relative to comparable returns generated in a base year (2010).
It comes as Ornua says it has been moving Cheddar to storage in the UK ahead of the March 29 deadline for Brexit.
"We're now storing in the UK, primarily to avoid logistics issues that we foresee happening through early April, May and June," according to John Jordan.
"They're all unforeseen so we've overcome that and we'll have a solution for our UK customers."
Currently over six months worth of stock is in warehousing in the UK, which amounts to around 40,000-50,000 tonnes of product.